CBDT Notification No. 25/2026, dated 24 March 2026, issued under section 10(46A) of the Income-tax Act, grants tax exemption status to Urban Improvement Trust, Sikar, a statutory body constituted under the Rajasthan Urban Improvement Act, 1959. The notification recognizes the trust as eligible for exemption on specified income, effective from assessment year 2026–27. The benefit is conditional upon the entity continuing to operate as a trust under the relevant state law and fulfilling prescribed purposes under section 10(46A). The notification clarifies that eligibility is not absolute and remains subject to ongoing compliance with statutory conditions, ensuring that only qualifying government-backed entities engaged in public functions receive tax exemption.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 25/2026-Income Tax | Dated: 24th March, 2026
S.O. 1532(E).—In exercise of the powers conferred by sub-clause (b) of clause (46A) of section 10 of the Income-tax Act, 1961 (43 of 1961), (hereinafter referred to as “the Income-tax Act”), the Central Government hereby notifies “Urban Improvement Trust, Sikar” (PAN: AAATU6139J) (hereinafter referred to as “the assessee”), a trust constituted under the Rajasthan Urban Improvement Act, 1959 (Act No. 35 of 1959), for the purposes of the said clause.
2. This notification shall be effective from the assessment year 2026-27, subject to the condition that the assessee continues to be a trust constituted under the Rajasthan Urban Improvement Act, 1959 (Act No. 35 of 1959) with one or more of the purposes specified in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act.
[Notification No. 25/2026/F. No. 300195/29/2025-ITA-I]
HARDEV SINGH, Under Secy.
