Ministry of Finance
Notification No. 98/2026 [F.No. 300196/7/2018-ITA-I] / SO 4120(E) : Notification in the case of Fees Regulating Authority was published on 27 July 2026. Its subject is Ministry of Finance.
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.
The Central Government notifies the Fees Regulating Authority (PAN AAAJF0167B), an authority constituted by the State Government of Maharashtra, for the purposes of section 10(46) of the Income-tax Act, 1961, in respect of three heads of specified income: processing fees, interest, penalties and other charges payable by private professional educational institutions; reimbursements and grants received from the Government of Maharashtra; and income from interest on bank deposits and other investments. The notification is made in pursuance of section 536(2)(a) to (c) and (e) of the Income-tax Act, 2025, which saves the repealed 1961 Act for tax years beginning before 1 April 2026. It is deemed to apply for assessment years 2022-23 to 2026-27.
The 1961 Act stands repealed by section 536(1) of the Income-tax Act, 2025, and the savings in section 536(2) require notifications for pre-2026 tax years to continue to be made under the 1961 Act.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 27th July, 2026
S.O. 4120(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And whereas, the Income-tax Act, 1961 (43 of 1961) was repealed by section 536 (1) of the Income-tax Act, 2025 (30 of 2025);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 1 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, " Fees Regulating Authority (PAN AAAJF0167B) ", an authority constituted by the State Government of Maharashtra, in respect of the following specified income arising to that authority, namely:-
(a) processing fees, interest, penalties and other charges payable by Private Professional Educational Institutions;
(b) reimbursements/Grants received from Government of Maharashtra; and
(c) income from interest on bank deposits and other investments.
4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
2. This notification shall be effective subject to the conditions that Fees Regulating 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 provision of section 139(4C) (g) of the Act of 1961.
3. Failure to comply with these conditions may result in the initiation of penal actions under the provisions of the Income Tax Act, 1961, and withdrawal of exemption granted u/s 10(46) of the Act.
4. This notification shall be deemed to have been applied for the assessment years 2022-23, 2023-24, 2024-25, 2025-26 and 2026-27 relevant to the financial years F.Y. 2021-22, 2022-23, 2023-24, 2024-25 and 2025-26.
[Notification No. 98 /2026/ F.No. 300196/7/2018-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 year 2022-23, retrospectively.
In the Authority's return of income filed under section 139(4C)(g) and in the exemption claimed under section 10(46) in assessments for assessment years 2022-23 onwards.
← Notification No. 99/2026 [F.No.300196/16/2024-ITA-I] / SO 4121(E) : Notification under section 536 (1) of the Income Tax Act 2025 (30 of 2025) in the case of Chhattisgarh Real Estate Regulatory Authority · Notification No. 97/2026 [F. No. 370142/11/2026-TPL] / GSR 656(E) : Income-tax (Third Amendment) Rules, 2026 : Notification of Income Tax Return (Block assessment) under section 294 →
Source: the Income Tax Department’s own published text — its page for this instrument.