The Ministry of Finance, through the Central Board of Direct Taxes (CBDT), has issued two important notifications, No. 151/2025 and No. 152/2025, dated October 15, 2025. These notifications grant income tax exemptions to two entities: the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) and the Rajasthan State Seed and Organic Certification Agency (RSSOCA). Published in the Gazette of India (Extraordinary), these exemptions will be effective starting from the Assessment Year 2024–2025.
U/s 10(46A) of the Income-tax Act, 1961, the CBDT exercised its powers, which permit the Central Government to notify statutory authorities, boards, or bodies for exemption from income tax on their income derived from government-mandated public functions.
The exemption will be there as per the prerequisite that the organisation continues to function under the particular act under which it was founded, and continues to undergo the operations specified in the regulations.
Under the Chennai Metropolitan Water Supply and Sewerage Act, 1978, legislated by the Government of Tamil Nadu, the Chennai Metropolitan Water Supply and Sewerage Board was formed. The board has been obligated for planning, developing, operating, and maintaining the water supply and sewerage system within the Chennai Metropolitan Area.
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It furnishes clean drinking water and ensures sanitation and wastewater management for millions of residents. The income of the Board generated via these statutory activities will be waived from income tax, enabling it to reinvest its revenue in enhancing infrastructure and service delivery.
Under the Seeds Act, 1966, a Central legislation, the Rajasthan State Seed and Organic Certification Agency functions. It is the duty of the agency to certify seeds and promote organic farming practices in Rajasthan.
It assures that farmers get high-quality and certified seeds, which helps enhance the crop yield and maintain the norms of agriculture. The government, via allotting the income tax exemption, acknowledges its role in keeping sustainable agriculture and ensuring good quality of seed for farmers in the state.
Both exemptions are applicable from the AY 2024-2025, notifications cited, and it has been said that no person shall be impacted by providing retrospective effect to these notifications.
Read Notification No. 151
Read Notification No. 152
