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Introduction: The Ministry of Finance, through the Central Board of Direct Taxes, has issued a significant notification under section 10(46) of the Income-tax Act, 1961, concerning the Uttar Pradesh Real Estate Regulatory Authority (UP RERA). This notification grants specific tax exemptions to UP RERA for specified incomes, marking a crucial development in regulatory governance.

Detailed Analysis: The notification outlines the specified incomes eligible for tax exemption, including grants-in-aid, loans/advances from the government, fees/penalties from stakeholders as per the Real Estate (Regulation and Development) Act, 2016, fees under the Right to Information Act, 2005, and interest earned on bank deposits. To qualify for these exemptions, UP RERA must adhere to certain conditions. It must refrain from engaging in commercial activities, maintain the nature of specified incomes unchanged throughout financial years, and file income tax returns as per prescribed provisions.

Moreover, the retrospective effect of this notification applies to assessment years 2021-2022, 2022-2023, and 2023-2024, aligning with the relevant financial years. This retrospective application ensures consistency and clarity in tax treatment for UP RERA’s specified incomes.

Conclusion: The notification granting tax exemption to UP RERA signifies the government’s recognition of the authority’s role in regulating the real estate sector and promoting transparency. By exempting specified incomes, the government aims to facilitate UP RERA’s operations while ensuring financial sustainability. This notification underscores the commitment to streamline regulatory governance and support entities contributing to the development of the real estate industry.


(Department of Revenue)
New Delhi

Notification No. 25/2024-Income Tax | Dated: 1st March, 2024

S.O. 999(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, ‘Uttar Pradesh Real Estate Regulatory Authority’ (PAN AAAGU0671E), an Authority constituted by the State Government of Uttar Pradesh, in respect of the following specified income arising to that Authority, namely:-

(a) Amount received as Grant-in-aid or loan/advance from Government;

(b) Fee/penalty received from builders/developers, agents or any other stakeholders as per the provisions of the Real Estate (Regulation and Development) Act, 2016;

(c) Fee received under Right to Information Act, 2005; and

(d) Interest earned on bank deposits.

Notification under IT Act, 1961 UP Real Estate Regulatory Authority

2. This notification shall be effective subject to the conditions that Uttar Pradesh Real Estate Regulatory 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 the assessment years 2021-2022, 2022-2023 and 2023-2024 relevant for financial years 2020-2021, 2021-2022 and 2022-2023, respectively.

[Notification No. 25/2024/F. No. 300196/17/2021-ITA-I]

Explanatory Memorandum

It is certified that no person is being adversely affected by giving retrospective effect to this notification.

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April 2024