The Central Government, through the Ministry of Finance (Central Board of Direct Taxes), issued Notification No. 41/2026 dated 30 March 2026 under section 10(46A)(b) of the Income-tax Act, 1961, notifying the Karnataka Industrial Areas Development Board as an eligible entity for the purposes of the said provision. The notification applies from Assessment Year 2024–25, subject to the condition that the entity continues to function as a board constituted under the Karnataka Industrial Areas Development Act, 1966 and fulfills the specified purposes under section 10(46A)(a) of the Act. The notification grants the specified status to the board in accordance with statutory provisions. An explanatory memorandum clarifies that the retrospective effect, from the year in which the application was made before the tax authorities, does not adversely affect any person. The notification formalises the recognition of the board under the relevant tax exemption framework prescribed by law.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 41/2026 – Income Tax | Dated: 30th March, 2026
S.O. 1653(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 the ‘Karnataka Industrial Areas Development Board’ (PAN: AAATK1305J) (hereinafter referred to as “the assessee”), a board constituted under the Karnataka Industrial Areas Development Act, 1966 (Karnataka Act No. 18 of 1966), for the purposes of the said clause.
2. This notification shall be effective from the assessment year 2024-25, subject to the condition that the assessee continues to be a board constituted under the Karnataka Industrial Areas Development Act, 1966 (Karnataka Act No. 18 of 1966), 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. 41/2026/F. No. 300195/54/2024-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
