The Ministry of Finance, through the Central Board of Direct Taxes (CBDT), issued Notification No. 34/2026 dated March 27, 2026, granting income tax exemption under Section 10(46A) of the Income-tax Act, 1961 to a statutory trust constituted under the Punjab Town Improvement Act, 1922. The notification recognizes the trust as an eligible entity performing public utility functions, thereby qualifying its income for exemption. This benefit is applicable from Assessment Year 2025–26, subject to the condition that the trust continues to operate in accordance with the objectives specified under Section 10(46A). The exemption is contingent upon the entity maintaining its statutory character and carrying out prescribed public purposes. The accompanying explanatory memorandum clarifies that the retrospective application of the notification, aligned with the date of application, does not adversely affect any person. This notification provides clarity on tax treatment and ensures certainty for statutory trusts engaged in development and public welfare activities.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the
Notification No. 34/2026 – Income Tax | Dated: 27th March, 2026
S.O. 1623(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 `Improvement Trust, Sangrur’ (PAN: AAATI6009F) (hereinafter referred to as “the assessee”), a trust constituted under `The Punjab Town Improvement Act, 1922′(Punjab Act 4 of 1922), for the purposes of the said clause.
2. This notification shall be effective from the assessment year 2025-26, subject to the condition that the assessee continues to be a trust constituted under ‘The Punjab Town Improvement Act, 1922(Punjab Act 4 of 1922)’ 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. 34 /2026/F.No. 300195/38/2024-ITA-I]
HARDEV SINGH, Under Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect (with effect from the year of filing of application before the board/Income tax Department) to this notification.
