The Ministry of Finance, through the Central Board of Direct Taxes, issued Notification No. 151/2025 on October 15, 2025, granting a specific income tax exemption to the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB), identified by PAN: AAALM0037B. In an exercise of powers granted by sub-clause (b) of clause (46A) of section 10 of the Income-tax Act, 1961, the Central Government has officially notified CMWSSB, a Board established under the Chennai Metropolitan Water Supply and Sewerage Act, 1978. This notification makes the Board eligible for the income tax exemption specified under the said clause, which generally applies to income received by certain entities established for specific public utility purposes. Critically, this tax exemption is applied retrospectively from the Assessment Year 2024-2025. The effectiveness of the notification is conditional: the CMWSSB must continue to be a Board constituted under the 1978 Tamil Nadu Act and its functions must remain consistent with the purposes detailed in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act. An explanatory memorandum certifies that no party is adversely affected by this retrospective application.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 151/2025- Income Tax | Dated: 15th October, 2025
S.O. 4678(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 “Chennai Metropolitan Water Supply and Sewerage Board” (PAN: AAALM0037B) (hereinafter referred to as “the assessee”), a Board constituted under the Chennai Metropolitan Water Supply and Sewerage Act, 1978 (Tamil Nadu Act 28 of 1978) for the purposes of the said clause.
2. This notification shall be effective from the assessment year 2024-2025, subject to the condition that the assessee continues to be a Board constituted under the Chennai Metropolitan Water Supply and Sewerage Act, 1978 (Tamil Nadu Act 28 of 1978) 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. 151 /2025/F. No.300195/65/2024-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.
