Kerala Real Estate Regulatory Authority Notified for Section 11 Exemption Under Income-tax Act, 2025
Overview
The Central Board of Direct Taxes (CBDT) has issued a formal notification granting income tax exemption to the Kerala Real Estate Regulatory Authority, recognising it as an eligible body for the purposes of Schedule III [Table: Sl. No. 36] read with Section 11 of the Income-tax Act, 2025. This development carries significant implications for regulatory authorities operating under the Real Estate (Regulation and Development) Act, 2016, and clarifies the tax treatment of income earned by such statutory bodies.
Notification No. 102/2026-Income Tax, dated 29th July, 2026, issued by the Ministry of Finance (Department of Revenue) through the Central Board of Direct Taxes, formally brings the Kerala Real Estate Regulatory Authority within the ambit of the specified exemption framework for the tax year 2026-27.
Legal Basis and Statutory Framework
Constitution of the Authority
The Kerala Real Estate Regulatory Authority (PAN: AAAGK1025N) was established by the Government of Kerala in exercise of powers under sub-section (1) of Section 20 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016). As a statutory regulatory body, it performs oversight and adjudicatory functions within the real estate sector in the state of Kerala.
Enabling Provision Under Income-tax Act, 2025
The exemption has been granted under the framework of Schedule III [Table: Sl. No. 36] read with Section 11 of the Income-tax Act, 2025 (30 of 2025). Section 11 of the Income-tax Act, 2025 deals with income from property held for charitable or public purposes and its exemption from total income computation. The Schedule III notification mechanism enables the Central Government to designate specific authorities, institutions, or bodies as eligible for such exemption with respect to particular streams of income.