Notification under section 10(46A) of Income Tax Act, 1961 in the case of Barnala Improvement Trust
The Central Government, through the Ministry of Finance and the Central Board of Direct Taxes, issued Notification No. 9/2026 dated 19 January 2026 notifying the Barnala Improvement Trust for the purposes of Section 10(46A) of the Income-tax Act, 1961. The notification grants income-tax exemption to the Trust as a local authority constituted under the Punjab Town Improvement Act, 1922, provided it continues to function with one or more specified statutory purposes under Section 10(46A)(a). The exemption is made effective from Assessment Year 2024–25, ensuring that eligible income of the Trust qualifies for tax relief from that year onwards. The Explanatory Memorandum clarifies that the retrospective operation of the notification, from the year of application, does not adversely affect any person. Overall, the notification reinforces the tax-exempt status of statutory local development authorities, subject to continued compliance with their legislative mandate.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 9/2026 – Income Tax | Dated: 19th January, 2026
S.O. 261(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 the ‘Barnala Improvement Trust’ (PAN: AABTB1345E) (hereinafter referred to as “the assessee”), an authority constituted under the Punjab Town Improvement Act, 1922 (Punjab Act No. 4 of 1922), for the purposes of the said clause.
2. This notification shall be effective from the assessment year 2024-25, subject to the condition that the assessee continues to be a local authority constituted under the Punjab Town Improvement Act, 1922 (Punjab Act No. 4 of 1922) 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. 9 /2026/F. No. 300195/47/2024-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.
