Ministry of Finance, through the Central Board of Direct Taxes (CBDT), has issued Notification No. 159/2025 dated 7th November 2025, granting income tax exemption to the “Ayodhya Vikas Pradhikaran (Ayodhya Development Authority)” under sub-clause (b) of clause (46A) of Section 10 of the Income-tax Act, 1961. This notification recognizes the authority, constituted under the Uttar Pradesh Urban Planning and Development Act, 1973, as an eligible entity for exemption under the specified clause. The exemption will apply from the assessment year 2024-25 onwards, provided the authority continues to operate under the said Act and pursues one or more of the purposes listed in sub-clause (a) of Section 10(46A). The notification ensures that the exemption remains valid as long as the authority maintains its statutory character and objectives aligned with urban planning and development. Additionally, the accompanying explanatory memorandum clarifies that no individual or entity will be adversely affected by the retrospective application of this notification. This measure effectively formalizes the tax-exempt status of the Ayodhya Vikas Pradhikaran, supporting its functioning as a government-constituted authority involved in planned urban development activities within Uttar Pradesh.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
New Delhi
Notification No. 159/2025 – Income Tax | Dated: 7th November, 2025
S.O. 5061(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 “Ayodhya Vikas Pradhikaran (Ayodhya Development Authority)” [AAALA0206C] (hereinafter referred to as “the assessee”), an authority constituted under the Uttar Pradesh Urban Planning and Development Act, 1973 (President Act 11 of 1973), 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 an authority constituted under the Uttar Pradesh Urban Planning and Development Act, 1973 (President’s Act 11 of 1973) 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. 159/2025/F. No. 300195/58/2024-ITA-I]
MEENAKSHI SINGH, Dy. Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect to this notification.
