The Central Government, through Notification No. 123/2025 – Income Tax issued on July 22, 2025, has notified the Puducherry Building and Other Construction Workers Welfare Board (PAN: AABAP7098M) for income tax exemption under clause (46) of Section 10 of the Income-tax Act, 1961. This exemption applies to specific income sources: cess received, registration and renewal fees collected from construction workers, and interest earned on bank deposits. The notification is effective retrospectively from Financial Year 2023-2024 (Assessment Year 2024-25) and will continue for Financial Years 2024-2025, 2025-2026, 2026-2027, and 2027-2028. The exemption is contingent on the Board not engaging in any commercial activity, maintaining the nature of its specified income and activities, and filing its income tax returns as per Section 139(4C)(g) of the Income-tax Act, 1961. An explanatory memorandum accompanying the notification confirms that this retrospective application does not adversely affect any person.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 123/2025 – Income Tax | Dated: 22nd July, 2025
S.O. 3364(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, ‘Puducherry Building and Other Construction Workers Welfare Board’ (PAN: AABAP7098M), a Board constituted by Government of Union Territory of Puducherry, in respect of the following specified income arising to that Board, namely:-
a. Cess received,
b. Registration & Renewal fee received/collected from the Building and other Construction Workers
c. Interest received on bank deposits
2. This notification shall be effective subject to the conditions that “Puducherry Building and Other Contraction Workers Welfare Board” –
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 proviso 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 financial years 2023-2024, 2024-2025 relevant to assessment year 2024-25, 2025-26 and shall also apply with respect to financial year 2025-2026, 2026-2027 and 20272028 relevant to assessment year 2026-2027, 2027-2028 and 2028-2029.
[Notification No. 123/2025/F. No. 300196/14/2024-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.
