[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
Notification No. 83/2026 [F. No. 300196/45/2025-ITA-I)] / SO 3799(E) was published on 13 July 2026. Its subject is [भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3.
This grants an exemption or a relief under a provision that allows one. Read the conditions attached: an exemption notification is construed strictly, and a condition missed is the exemption lost.
Acting under the savings in section 536(2)(a) to (c) and (e) of the Income-tax Act, 2025, the Central Government notifies the Baddi Barotiwala Nalagarh Development Authority (PAN AAALB0528J), an authority constituted by the State Government of Himachal Pradesh, for the purposes of section 10(46) of the Income-tax Act, 1961. The specified income exempted is grants received from the Central Government or the State Government of Himachal Pradesh, revenue receipts under the Himachal Pradesh Town and Country Planning Act, 1977, and interest on bank deposits. The exemption is conditional on the Authority not engaging in any commercial activity, its activities and the nature of its specified income remaining unchanged through the financial years, and its filing a return of income under section 139(4C)(g) of the 1961 Act. The notification is deemed to apply for assessment years 2024-25, 2025-26 and 2026-27.
The recitals explain that despite the repeal of the 1961 Act by section 536(1) of the Income-tax Act, 2025, the savings in section 536(2) keep it in operation for earlier years and for pending or later proceedings relating to tax years beginning before 1 April 2026, so the section 10(46) notification can be made for those years. The explanatory memorandum certifies that no person's interests are adversely affected by the retrospective effect.
[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 13th July, 2026
S.O. 3799(E).— Whereas, section 10(46) of the Income-tax Act, 1961 (43 of 1961) provided for exemption of specified income of certain bodies or authorities or Boards or Trusts or Commissions as may be notified by the Central Government in the Official Gazette for the purposes of that section;
And whereas, the Income-tax Act, 1961 (43 of 1961) was repealed by section 536(1) of the Income-tax Act, 2025 (30 of 2025);
And whereas, section 536(2)(a) and (b) of the Income-tax Act, 2025 (30 of 2025), inter alia, provides that irrespective of the repeal of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Act of 1961) and subject to sub-section (4) thereof, nothing shall affect-
(i) the previous operation of the provisions of the Act of 1961 and any order or anything duly done or suffered thereunder; or
(ii) any right, privilege, obligation or liability acquired, accrued or incurred under the Act of 1961 or orders under that Act;
And whereas, section 536(2)(c) of the Income-tax Act, 2025 (30 of 2025) provides that the provisions of the Act of 1961 shall continue to apply to any proceeding pending on the date of commencement of the Income-tax Act, 2025 (30 of 2025) and to any proceedings initiated on or after the 1st April, 2026 (including notices, assessment, reassessment, recomputation, rectification, penalty, reference, revision and appeals) in respect of any tax year beginning before the 1st April, 2026 and such proceedings shall be carried out as per the procedure specified in the Act of 1961;
And whereas, section 536(2)(e) of the Income-tax Act, 2025 (30 of 2025) provides that any proceeding pending on the date of its commencement before any income-tax authority or any other authority constituted under the repealed Income-tax Act, Appellate Tribunal, or any court, by way of application, appeal, reference or revision or by any other means, shall be continued and disposed of as if this Act had not been enacted;
Now, therefore, in pursuance of the provisions of section 536(2)(a) to (c) and (e) of the Income-tax Act, 2025 (30 of 2025), the Central Government hereby notifies, for the purposes of section 10(46) of the Act of 1961, "Baddi Barotiwala Nalagarh Development Authority (PAN AAALB0528J)", an authority constituted by the State Government of Himachal Pradesh, in respect of the following specified income arising to that Authority, namely:-
(a) grants received from the Central Government or the State Government of Himachal Pradesh;
(b) revenue receipts under the Himachal Pradesh Town and Country Planning Act, 1977 (Himachal Pradesh Act 12 of 1977) ; and
(c) interest on bank deposits.
2. This notification shall be effective subject to the conditions that the Baddi Barotiwala Nalagarh Development Authority-
(a) shall not engage in any commercial activity;
(b) its 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 provisions of section 139(4C) (g) of the Act of 1961.
3. Failure to comply with these conditions shall result in the initiation of penal actions under the provisions of the Act of 1961, and withdrawal of exemption granted under section 10(46) of the Act of 1961.
4. This notification shall be deemed to have been applied for the assessment years 2024-25, 2025-26 and 2026-27 relevant to the financial years 2023-24, 2024-25 and 2025-26.
[No. 83 /2026/F. No. 300196/45/2025-ITA-I)]
HARDEV SINGH, Under Secy.
Explanatory Memorandum
It is certified that the interests of no person are being adversely affected by giving retrospective effect [with effect from the year of application filed before the Board or Income tax Department] to this notification.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
assessment years 2024-25 to 2026-27, retrospectively.
In the Authority's returns and assessments for assessment years 2024-25 to 2026-27, and wherever the exemption of its grants, planning-law revenue receipts or bank interest is examined.
← Notification No. 84/2026 [F.No. 500/PF-15/S10(23FE)/FT&TR-II] / SO 3890(E) · Notification No. 82/2026 [F. No. 300196/45/2025-ITA-I] / SO 3798(E) →
Source: the Income Tax Department’s own published text — its page for this instrument.
