Income Tax Exemption Approved for UP Industrial Authority with Conditions

The Central Government, through Notification No. 05/2026 dated 7 January 2026, has notified the Gorakhpur Industrial Development Authority for the purposes of clause (46A) of section 10 of the Income-tax Act, 1961. Issued under the powers conferred by sub-clause (b) of clause (46A), the notification recognizes the Authority as an eligible entity for income-tax exemption, subject to statutory conditions. The exemption is made effective from Assessment Year 2025–26, provided the Authority continues to be constituted under the Uttar Pradesh Industrial Area Development Act, 1976 and pursues one or more purposes specified under section 10(46A)(a) of the Act. The accompanying Explanatory Memorandum clarifies that granting retrospective effect—aligned with the year of application made before the competent authority—does not adversely affect any person. The notification formalizes the tax-exempt status of the Authority within the framework prescribed by law, contingent on continued compliance with its governing statute and specified purposes.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No. 05/2026-Income-tax | Dated: 7th January, 2026

S.O. 101(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 “Gorakhpur Industrial Development Authority (PAN:AAALG1185A), (hereinafter referred to as “the assessee”), an authority constituted under the Uttar Pradesh Industrial Area Development Act, 1976 (U.P. Act no.6 of 1976) for the purposes of the said clause.

2. This notification shall be effective from the assessment year 2025-26, subject to the condition that the assessee continues to be an authority constituted under the Uttar Pradesh Industrial Area Development Act, 1976 (U.P. Act no.6 of 1976) 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. 05/2026/F.No. 300195/38/2025-ITA-I]
HARDEV SINGH, Under Secy.

Explanatory Memorandum

It is certified that no person is being adversely affected by giving retrospective effect (with effect from the year of application made before the Board/Department) to this notification.