Exemption Notification under section 10(46) of the Income Tax Act, 1961 in the case of Dadra and Nagar Haveli Building and Other Construction Workers Welfare Board
The Central Government has notified the Dadra and Nagar Haveli Building and Other Construction Workers Welfare Board for income-tax exemption under Section 10(46) of the Income-tax Act, 1961, covering specified non-commercial receipts. The exempt income includes cess collected under the Building and Other Construction Workers’ Welfare Cess Act, 1996, registration fees under the corresponding labour regulation law, and interest earned on bank deposits. The exemption is conditional upon the Board not engaging in any commercial activity, maintaining the same nature of activities and income throughout the relevant years, and filing income-tax returns as mandated under Section 139(4C)(g). Non-compliance may lead to penal action and withdrawal of the exemption. Importantly, the notification has been granted retrospective effect for Assessment Years 2019–20 to 2023–24 (Financial Years 2018–19 to 2022–23). The Explanatory Memorandum clarifies that this retrospective application does not adversely affect any person, as the application for exemption had been made earlier.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 12/2026 – Income Tax | Dated: 21st January, 2026
S.O. 333(E).— In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Dadra and Nagar Haveli Building and Other Construction Workers Welfare Board (PAN: AAALT2225N)’, a Board constituted by UT Administration of Dadra and Nagar Haveli, in respect of the following specified income arising to the said Board, as follows:
a. Cess collected under the Building And Other Construction Workers’ Welfare Cess Act, 1996 (28 of 1996)
b. Registration fees under the Buildings And Other Construction Workers’ (Regulation of Employment And Conditions of Service) Act, 1996 (27 of 1996); and
c. Interest earned on bank deposits.
2. This notification shall be effective subject to the conditions that Dadra and Nagar Haveli Building and other Construction Workers Welfare Board –
a. shall not engage in any commercial activity;
b. activities and the nature of the specified income shall remain unchanged throughout the financial years; and
c. shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
2.1 Failure to comply with these conditions may result in the initiation of penal actions under the provisions of the Income-tax Act, 1961 and withdrawal of the exemption granted u/s 10(46) of the Act.
3.. This notification shall be deemed to have been applied for assessment years 2019-2020, to 2023-2024 relevant for the financial years F.Ys. 2018-19 to 2022-23.
[Notification No. 12/2026/F. No. 300196/52/2019-ITA-I]
HARDEV SINGH, Under Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect [from the year of its application made before the CBDT/ Income-tax Department] to this notification.
