The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has issued Notification No. 16/2025 dated February 12, 2025, granting tax exemption to the Real Estate Regulatory Authority (RERA), Punjab u/s 10(46A) of the Income-tax Act, 1961.
Under the notification, RERA Punjab (PAN: AAAJR1281N) has been acknowledged as an exempt entity for the AY 2024-25 onwards, given it continues to function as an authority under The Real Estate (Regulation and Development) Act, 2016 with the defined purposes abstracted in sub-clause (a) of Section 10(46A) of the Income-tax Act.
Notification Importance
- Conditional Tax Exemption- As long as RERA Punjab fulfils the norms mentioned under the Income Tax Act the benefit will be continued.
- Tax Relief for RERA Punjab- The exemption assures that the income of the authority stays tax-free permitting it to focus on its obligatory operations without financial restrictions.
- Enhance real estate regulations- Robusting the governance of Punjab’s real estate by allowing RERA to function efficiently in safeguarding the homebuyers and ensuring secure clarity.
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The same decision supports the devotion of the government to make real estate regulation and consumer protection effective giving financial freedom to regulatory bodies.
