The Central Board of Direct Taxes, through Notification No. 99/2026-Income Tax dated 27 July 2026, has notified the Chhattisgarh Real Estate Regulatory Authority (PAN: AAAJC1049H) 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 grants exemption in respect of specified income comprising grant-in-aid or loan/advance received from the Government, fees or penalties received from builders, developers, agents or other stakeholders under the Real Estate (Regulation and Development) Act, 2016, and interest earned on such amounts. The exemption is subject to the conditions that the Authority does not engage in commercial activity, its activities and the nature of the specified income remain unchanged throughout the financial years, and it files its return of income under section 139(4C)(g) of the Income-tax Act, 1961. The notification states that failure to comply with these conditions may result in penal action under the Income-tax Act, 1961 and withdrawal of the exemption. It is deemed to apply to assessment years 2024-25, 2025-26 and 2026-27 relevant to financial years 2023-24, 2024-25 and 2025-26.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 99/2026-Income Tax | Dated: 27th July, 2026
S.O. 4121(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And whereas, the Income-tax Act, 1961 (43 of 1961) was repealed by section 536 (1) of the Income-tax Act, 2025 (30 of 2025);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 1 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, ” Chhattisgarh Real Estate Regulatory Authority (PAN: AAAJC1049H) ”, an authority constituted by the State Government of Chhattisgarh, in respect of the following specified income arising to that authority, namely:-
a. amount received as Grant-in-aid or loan / advance from Government;
b. fee/penalty received from builders/developers, agents or any other stakeholders as per the provisions of the Real Estate (Regulation and Development) Act, 2016; and
c. interest earned on (a) and (b) above.
2. This notification shall be effective subject to the conditions that Chhattisgarh 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 the assessment years 2024-25, 2025-26 and 2026-27 relevant to the financial years 2023-24, 2024-25 and 2025-26.
[Notification No. 99 /2026/ F.No.300196/16/2024-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.
