CBDT Grants Retrospective Tax Exemption to Haryana RERA, Gurugram Under Section 10(46)

The Central Board of Direct Taxes (CBDT) has granted a retrospective tax exemption to the Haryana Real Estate Regulatory Authority (RERA), Gurugram. The exemption has been provided under Section 10(46) of the Income Tax Act and is applicable from the financial year 2018-19 onwards. This section exempts specified incomes of certain government-constituted bodies that are not engaged in commercial activities. The notified incomes for Haryana RERA that will be exempt from tax include registration fees from real estate projects and agents, penalties collected, and interest earned on these amounts. This retrospective exemption provides significant financial relief to the regulatory authority, ensuring that its income, which is primarily used for regulating the real estate sector and protecting homebuyer interests, is not diminished by tax obligations. It reinforces the non-commercial and regulatory nature of RERA.