The Central Board of Direct Taxes (CBDT) has, through notification, S.O. 3865(E) dated 1st September, granted income tax exemption to Real Estate Regulatory Authorities (RERA) in four different states, as detailed in the attached table at the end of this article under Section 10(46) of the Income Tax Act, 1961.
Under Section 10, clause (46) of the Income-tax Act, 1961, the Central Government has issued a notification designating ‘Real Estate Regulatory Authorities’ as outlined in the attached schedule.
These authorities have been established by the government under Section 20(1) of the Real Estate (Regulation and Development) Act, 2016, and are classified as a specific ‘class of Authority’. This exemption aims exclusively to specify income earned by these Authorities, which includes:
- Amount received as grants or loans/advances from the Government.
- Fees/penalties collected from builders, developers, agents, or other stakeholders under the Real Estate (Regulation and Development) Act, 2016.
- Interest earned on the aforementioned criteria 1&2.
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This notification takes effect with the condition that each Real Estate Regulatory Authority:
- Must not engage in any commercial activities.
- The activities and nature of the specified income must remain unchanged throughout the financial years.
- Shall submit an income tax return as per the provisions of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
This notification applies to the financial year 2022-23, relevant for the assessment year 2023-24.
Schedule
| Name of the Real Estate Regulatory Authority | PAN |
|---|---|
| Chhatisgarh Real Estate Regulatory Authority | AAAJC1049H |
| Uttarakhand Real Estate Regulatory Authority | AAALU0695H |
| Madhya Pradesh Real Estate Regulatory Authority | AAAGM0458B |
| Real Estate Regulatory Authority, Punjab | AAAJR1281N |
