Central Board of Direct Taxes (CBDT), under the Ministry of Finance, issued Notification No. 114/2025-Income Tax on 14th July 2025, granting tax exemption under clause (46) of Section 10 of the Income-tax Act, 1961 to the Baddi Barotiwala Nalagarh Development Authority (BBNDA), Himachal Pradesh. The exemption applies to specific incomes including grants received from the Central and State Governments, revenue generated under the Himachal Pradesh Town and Planning Act, 1977, and interest on bank deposits. The notification stipulates that BBNDA must not undertake any commercial activities, must maintain the nature of its specified income and operations across financial years, and must comply with the return filing requirements under section 139(4C)(g) of the Income-tax Act. The exemption is granted retrospectively for the assessment years 2014–15 through 2018–19, corresponding to financial years 2013–14 through 2017–18. An explanatory memorandum affirms that no individual will be adversely affected due to the retrospective application of this notification.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 114/2025-Income Tax | Dated: 14th July, 2025
S.O. 3203(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, ‘Baddi Barotiwala Nalagarh Development Authority’ (PAN AAALB0528J), an Authority constituted by the State Government of Himachal Pradesh, in respect of the following specified income arising to that Authority, namely:
(a) Grants received from Central Government and State Government of Himachal Pradesh;
(b) Revenue Receipts under HP Town and Planning Act, 1977; and
(c) Interest on bank deposits.
2. This notification shall be effective subject to the conditions that Baddi Barotiwala Nalagarh Development Authority-
(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 deemed to have been applied for assessment years 2014-2015, 2015-2016, 2016-2017, 2017-2018 and 2018-2019 relevant for the financial years 2013-2014, 2014-2015, 2015-2016, 2016-2017 and 2017-2018, respectively.
[Notification No. 114 /2025/F. No. 196/23/2014-ITA-I(Pt.1)]
MEENAKSHI SINGH, Dy. Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect to this notification.
