CBDT grants Section 10(46A) exemption to Haryana Shehri Vikas Pradhikaran

The Central Board of Direct Taxes has formally recognised Haryana Urban Development Authority, now functioning as Haryana Shehri Vikas Pradhikaran, as a notified authority eligible for income-tax exemption under Section 10(46A) of the Income-tax Act, 1961. This recognition has been granted through Notification No. 29/2026 dated 25 March 2026 and is effective from Assessment Year 2024–25 onwards, subject to specific statutory conditions.

This development is significant for the assessee as a statutory body involved in urban development functions under the Haryana Urban Development Authority Act, 1977 (Haryana Act No. 13 of 1977) and clarifies its tax-exempt status on qualifying income in line with the scheme of Section 10(46A).

Statutory basis of the notification

Section 10(46A) of the Income-tax Act, 1961 provides for exemption of specified income of certain bodies or authorities that:

  • Are constituted under a Central, State, or Provincial Act, and
  • Are engaged in functions of public interest as set out in sub-clause (a) of clause (46A), and
  • Are specifically notified by the Central Government for this purpose.

Under sub-clause (b) of clause (46A) of section 10, the Central Government is empowered to notify such authorities. The present notification has been issued in exercise of that power.

Key point: Without a Central Government notification under Section 10(46A), a statutory body cannot claim exemption under this clause, even if it satisfies the functional criteria.

Entity covered: Haryana Urban Development Authority / Haryana Shehri Vikas Pradhikaran

The notification identifies the assessee as:

  • Name: Haryana Urban Development Authority (now known as Haryana Shehri Vikas Pradhikaran)
  • PAN: [AAAAH0087M]
  • Legal constitution: An authority established under the Haryana Urban Development Authority Act, 1977 (Haryana Act No. 13 of 1977)

The authority, having been renamed as Haryana Shehri Vikas Pradhikaran, continues to derive its legal existence and functions from the same State legislation.

Nature of activities

While the notification itself does not enumerate the detailed activities, by reference to sub-clause (a) of clause (46A) of section 10, the assessee is expected to be engaged in one or more of the following types of purposes generally contemplated under this clause, such as:

  • Activities relating to development of infrastructure or urban facilities
  • Functions connected to planned urbanisation, regulation, and improvement of urban areas
  • Public-oriented statutory functions assigned under the Haryana Urban Development Authority Act, 1977

In practice, this covers statutory urban development functions carried out on behalf of the State in the public interest.

Text and effect of CBDT Notification No. 29/2026

Operative portion of the notification

The core operative language of the notification states that:

“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), ... the Central Government hereby notifies the Haryana Urban Development Authority (now known as Haryana Shehri Vikas Pradhikaran) [AAAAH0087M] (hereinafter referred to as ‘the assessee’), an authority set up under the Haryana Urban Development Authority Act, 1977 (Haryana Act No. 13 of 1977), for the purposes of the said clause.”

Through this, the Central Government conclusively recognises the assessee as one of the authorities covered by Section 10(46A) from the specified assessment year, subject to conditions noted in the notification.

Period of applicability