CBDT Notifies Kerala RERA for Section 10(46) Exemption for AYs 2023-24 to 2026-27
The Central Board of Direct Taxes, through Notification No. 101/2026-Income Tax dated 29 July 2026, has notified the Kerala Real Estate Regulatory Authority (PAN: AAAGK1025N) for the purposes of Section 10(46) of the Income-tax Act, 1961, in pursuance of Section 536(2)(a) to (c) and (e) of the Income-tax Act, 2025. The notification covers specified income comprising fees collected for registration of projects, agents and plots, fees for filing compensation and complaints, and government grants. It is subject to the conditions that the Authority shall not engage in any commercial activity, its activities and the nature of the specified income shall remain unchanged throughout the financial years, and it shall file its return of income in accordance with Section 139(4C)(g) of the Income-tax Act, 1961. Failure to comply with these conditions will result in initiation of penal action under the Income-tax Act, 1961 and withdrawal of the exemption under Section 10(46). The notification is deemed to have applied for Assessment Years 2023-24, 2024-25, 2025-26 and 2026-27 relevant to Financial Years 2022-23, 2023-24, 2024-25 and 2025-26.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 101/2026-Income Tax | Dated: 29th July, 2026
S.O. 4190(E).— Whereas, section 10 (46) of the Income-tax Act, 1961 (43 of 1961) provided for exemption of specified income of certain bodies or authorities or Boards or Trusts or Commissions as may be notified by the Central Government in the Official Gazette for the purposes of that section;
And whereas, the Income-tax Act, 1961 (43 of 1961) was repealed by section 536 (1) of the Income-tax Act, 2025 (30 of 2025);
And whereas, section 536(2)(a) and (b) of the Income-tax Act, 2025 (30 of 2025), inter alia, provides that irrespective of the repeal of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Act of 1961) and subject to sub-section (4) thereof, nothing shall affect-
i. the previous operation of the provisions of the Act of 1961 and any order or anything duly done or suffered
thereunder; or
ii. any right, privilege, obligation or liability acquired, accrued or incurred under the Act of 1961 or orders under that Act;
And whereas, section 536(2)(c) of the Income-tax Act, 2025 (30 of 2025) provides that the provisions of the Act of 1961 shall continue to apply to any proceeding pending on the date of commencement of the Income-tax Act, 2025 (30 of 2025) and to any proceedings initiated on or after the 1st April, 2026 (including notices, assessment, reassessment, recomputation, rectification, penalty, reference, revision and appeals) in respect of any tax year beginning before the 1st April, 2026 and such proceedings shall be carried out as per the procedure specified in the Act of 1961;
And whereas, section 536(2)(e) of the Income-tax Act, 2025 (30 of 2025) provides that any proceeding pending on the date of its commencement before any income-tax authority or any other authority constituted under the repealed Income-tax Act, Appellate Tribunal, or any court, by way of application, appeal, reference or revision or by any other means, shall be continued and disposed of as if this Act had not been enacted;
Now, therefore, in pursuance of the provisions of section 536(2) (a) to (c) and (e) of the Income-tax Act, 2025 (30 of 2025), the Central Government hereby notifies, for the purposes of section 10 (46) of the Act of 1961, “Kerala Real Estate Regulatory Authority” (PAN:AAAGK1025N), an Authority constituted by Government of Kerala under sub-section (1) of Section 20 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016), in respect of the following specified income arising to the said authority, namely :-
a. fees collected for registration of projects / agents / plot.
b. fees for filing compensation and complaint; and
c. government grants.
2. This notification shall be effective subject to the conditions that the Kerala Real Estate Regulatory Authority –
a. shall not engage in any commercial activity;
b. its 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 provisions of section 139(4C) (g) of the Act of 1961.
3. Failure to comply with these conditions shall result in the initiation of penal actions under the provisions of the Act of 1961, and withdrawal of exemption granted under section 10(46) of the Act of 1961.
4. This notification shall be deemed to have been applied for assessment years 2023-24, 2024-25, 2025-26 and 2026-27 relevant for the financial years 2022-23, 2023-24, 2024-25 and 2025-2026.
[Notification No. 101/2026/F. No. 300196/88/2024-ITA-I]
HARDEV SINGH, Under Secy.
Explanatory Memorandum
It is certified that the interests of no person are being adversely affected by giving retrospective effect [with effect from the year of application filed before the Board or Income-tax Department] to this notification.
