CBDT extends Section 10(46) exemption to Noida SEZ Authority despite repeal of Income Tax Act 1961

Background: Interaction between Income Tax Act 1961 and Income Tax Act 2025

The Central Board of Direct Taxes (CBDT) has issued Notification No. 107/2026-Income Tax dated 4 August 2026, granting exemption to the Noida Special Economic Zone Authority (PAN: AAALN0639A) under Section 10(46) of the Income Tax Act 1961.

This relief has been notified even though the Income Tax Act 1961 (43 of 1961) stands repealed by Section 536(1) of the Income Tax Act 2025 (30 of 2025). The notification relies on the saving provisions contained in Section 536(2)(a) to (c) and (e) of the Income Tax Act 2025, which preserve the continued application of the 1961 Act for specified matters.

In essence, the Central Government has invoked these saving clauses to ensure that the exemption regime under Section 10(46) for notified authorities continues to operate for tax years beginning before 1 April 2026, including the Noida Special Economic Zone Authority.

Repeal of the 1961 Act and saving of prior rights

The notification first recalls the scheme of Section 536 of the Income Tax Act 2025:

  • Section 536(1) formally repeals the Income Tax Act 1961.
  • Section 536(2)(a) and (b) clarify that, notwithstanding this repeal and subject to Section 536(4):
    • The previous operation of the 1961 Act and any orders or acts performed under it remain unaffected.
    • Any right, privilege, obligation or liability that arose or was acquired, accrued or incurred under the 1961 Act or any order made thereunder is preserved.
  • Section 536(2)(c) stipulates that the provisions of the 1961 Act will continue to apply:
    • To all proceedings that were pending on the commencement date of the Income Tax Act 2025.
    • To all proceedings initiated on or after 1 April 2026 (including notices, assessment, reassessment, recomputation, rectification, penalty, reference, revision and appeals) in relation to any tax year beginning before 1 April 2026.
    • Such proceedings must follow the procedural framework of the 1961 Act.
  • Section 536(2)(e) further provides that any proceeding pending on the commencement date of the 2025 Act before:
    • Any income-tax authority,
    • Any other authority constituted under the 1961 Act,
    • The Appellate Tribunal, or
    • Any court,
      whether by way of application, appeal, reference, revision or otherwise,
      shall continue and be decided as if the 2025 Act had not been enacted.

These provisions collectively enable the Central Government to continue issuing notifications for the purposes of Section 10(46) of the Income Tax Act 1961 in respect of tax years beginning before 1 April 2026.

Scope of Section 10(46) of the 1961 Act

Section 10(46) of the Income Tax Act 1961 allows the Central Government to notify, via Official Gazette, specified bodies such as:

  • Authorities,
  • Boards,
  • Trusts,
  • Commissions,

for exemption of their specified income, provided they meet the prescribed conditions.

The current notification is issued precisely under this framework, targeting the Noida Special Economic Zone Authority as a notified entity for Section 10(46) purposes.

Notification in favour of Noida Special Economic Zone Authority

Entity covered

The Central Government, acting through the CBDT, has notified the following authority:

‘Noida Special Economic Zone Authority’ (PAN: AAALN0639A),
an Authority constituted by the Government of India,