Central Board of Direct Taxes (CBDT), through Notification No. 158/2025 dated 7th November 2025, has granted tax exemption under clause (46) of Section 10 of the Income Tax Act, 1961, to the Haryana Building and Other Construction Workers Welfare Board , Panchkula. The notification exempts specific income earned by the Board, which includes registration fees and annual subscriptions collected from registered construction workers, proceeds of cess collected under the Building and Other Construction Workers Welfare Cess Act, 1996, and interest earned on bank deposits. These exemptions are provided as the income is used for welfare purposes rather than commercial gain.
The notification specifies that the exemption is conditional upon the Board not engaging in any commercial activity and maintaining the same nature of activities and income sources throughout the period of exemption. Furthermore, the Board is required to file its return of income in accordance with clause (g) of sub-section (4C) of Section 139 of the Income Tax Act. The exemption is valid for the financial years 2025-26 to 2029-30, corresponding to assessment years 2026-27 to 2030-31.
The accompanying explanatory memorandum clarifies that the notification does not adversely affect any person, even though it applies retrospectively. This move aligns with the government’s objective to support welfare-oriented boards by exempting their non-commercial income from taxation, provided compliance with specified conditions is maintained throughout the notified period.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 158/2025-Income Tax | Dated: 7th November, 2025
S.O. 5060(E).— In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Haryana Building and Other Construction Workers Welfare Board’, Panchkula, (PAN: AAATH6995H) a Board constituted by the State Government of Haryana, in respect of the following specified income arising to that Board, namely:-
a. Registration fees and yearly subscription collected from construction workers registered with the Haryana Building and Other Construction Workers Welfare Board as beneficiaries.
b. Proceeds of the cess collected under the Building and Other Construction Workers Welfare Cess Act, 1996 (28 of 1996) and rules thereunder; and
c. Interest Income received on bank deposits.
2. This notification shall be effective subject to the conditions that ‘Haryana Building and Other Construction Workers Welfare Board’, Panchkula –
a. shall not engage in any commercial activity;
b. 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 provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
3. This notification shall be applicable from financial years 2025-26 to 2029-30 relevant to assessment years 2026-27 to 2030-31.
[Notification No. 158 /2025/F. No. 300196/38/2025-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.
