On April 7, 2025, the Central Board of Direct Taxes (CBDT), under the Ministry of Finance, issued Notification No. 28/2025 to grant tax exemption status to the Greater Mohali Area Development Authority (PAN: AAALG0872G). This authority, constituted under the Punjab Regional and Town Planning and Development Act, 1995, has been notified under sub-clause (b) of clause (46A) of section 10 of the Income-tax Act, 1961. The notification makes the authority eligible for income tax exemption starting from the assessment year 2024–25.
The exemption is conditional upon the authority continuing to operate under the Punjab Regional and Town Planning and Development Act, 1995, and maintaining one or more of the objectives specified in sub-clause (a) of clause (46A) of section 10. These objectives typically relate to functions such as urban planning, infrastructure development, or regulation of land use.
This recognition aligns with provisions of the Income-tax Act that allow for tax benefits to government or statutory bodies engaged in specific public purposes. The notification serves to formalize the tax-exempt status of the Greater Mohali Area Development Authority, provided it remains compliant with the legal and functional criteria outlined in the Income-tax Act.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 28/2025-Income Tax| Dated: 7th April, 2025
S.O. 1638(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 Greater Mohali Area Development Authority (PAN: AAALG0872G) (hereinafter referred to as “the assessee”), an authority constituted under The Punjab Regional and Town Planning and Development Act, 1995 (Punjab Act No. 11 of 1995), 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 Punjab Regional and Town Planning and Development Act, 1995 (Punjab Act No. 11 of 1995) 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. 28/2025/F. No. 300195/3/2024-ITA-I]
ASHWANI KUMAR, Under Secy.
