**Executive Summary**
This notification, issued by the Central Board of Direct Taxes on July 27, 2026, grants tax exemption to the "Fees Regulating Authority" of Maharashtra under the Income-tax Act, 1961. The document transitions authority from the repealed 1961 Act to the Income-tax Act, 2025, while maintaining specific exemptions. It applies retrospectively for Assessment Years 2022-23 through 2026-27, provided the Authority adheres to strict compliance and filing requirements.
**Key Points / Main Content**
**Legal Framework and Transition**
* The notification is issued under section 536(2) of the Income-tax Act, 2025, which preserves certain provisions, rights, and proceedings of the repealed Income-tax Act, 1961.
* Proceedings initiated before April 1, 2026, will continue under the procedures specified in the 1961 Act.
**Specified Exempt Incomes**
The "Fees Regulating Authority" (PAN: AAAJF0167B) is exempt from tax on the following types of income:
* Processing fees, interest, penalties, and other charges paid by Private Professional Educational Institutions.
* Grants and reimbursements received from the Government of Maharashtra.
* Interest earned on bank deposits and other investments.
**Conditions for Exemption**
To maintain exempt status, the Authority must:
* Refrain from engaging in any commercial activity.
* Ensure that the nature of its specified income and activities remains unchanged throughout the financial years.
* File income tax returns in accordance with section 139(4C)(g) of the 1961 Act.
**Applicability and Penalties**
* **Retrospective Effect:** The exemption applies to Financial Years 2021-22, 2022-23, 2023-24, 2024-25, and 2025-26.
* **Consequences of Non-compliance:** Failure to meet the specified conditions will result in the withdrawal of the exemption and the initiation of penal actions under the Income-tax Act, 1961.
**Impact Analysis**
**Fees Regulating Authority (Maharashtra)**
**Impact**
The Authority is granted retrospective tax-exempt status on its primary revenue streams, including fees from educational institutions and government grants.
**Action Required**
The Authority must file its return of income as per statutory requirements and ensure it does not engage in commercial activities or alter the nature of its operations.
**Income Tax Authorities**
**Impact**
Authorities must recognize the exemption during the assessment and reassessment of the specified years (AY 2022-23 to AY 2026-27).
**Action Required**
Tax officials must continue and dispose of pending proceedings related to this entity as if the new Act had not been enacted, following the procedures of the 1961 Act.
**Private Professional Educational Institutions**
**Impact**
The fees, penalties, and charges they pay to the Regulating Authority are now officially categorized within the Authority’s exempt income framework.
**Action Required**
No specific action is required from these institutions based on this document.
Key Entities Referenced
Fees Regulating Authority: An authority constituted by the Government of Maharashtra, notified for income tax exemption on specified incomes including processing fees, grants, and interest.
Income-tax Act, 1961: The principal legislation under which Section 10(46) provides tax exemptions for certain bodies or authorities as notified by the Central Government.
Income-tax Act, 2025: The legislation cited as having repealed the 1961 Act while preserving specific powers and proceedings required to issue this tax exemption notification.
Central Board of Direct Taxes (CBDT): The primary regulatory body under the Ministry of Finance responsible for issuing this notification regarding direct tax exemptions.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-27072026-274870
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CG-DL-E-27072026-274870
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असाधारण
EXTRAORDINARY
भाग II—खण्ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 3950] नई दिल्ली, सोमिार, िलु ाई 27, 2026/श्रािण 5, 1948
No. 3950] NEW DELHI, MONDAY, JULY 27, 2026/SHRAVAN 5, 1948
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केंद्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल्ली, 27 िुलाई, 2026
का.आ. 4120(अ).— िबदक, आयकर अजधजनयम, 1961 (1961 का 43) की धारा 10 (46) म ें कुछ जनकायों या
प्राजधकरणों या बोडों या रस्ट्टों या आयोगों की जनर्दिष्ट आय की छूट का प्रािधान दकया गया ह,ै िैसा दक केंद्र सरकार द्वारा
उस धारा के प्रयोिनों के जलए आजधकाररक रािपत्र में अजधसूजचत दकया िाए;
और िबदक, आयकर अजधजनयम, 1961 (1961 का 43) को आयकर अजधजनयम, 2025 (2025 का 30) की
धारा 536 (1) द्वारा जनरजसत कर दिया गया था;
और िबदक, आयकर अजधजनयम, 2025 (2025 का 30) की धारा 536(2)(क) और (ख), अन्य बातों के साथ-
साथ, यह प्रािधान करती ह ै दक आयकर अजधजनयम, 1961 (1961 का 43) (इसके बाि 1961 के अजधजनयम के रूप म ें
संिर्भभत) के जनरसन के बािििू और उसके उप-धारा (4), के जनम्नजलजखत को कुछ भी अध्यधीन प्रभाजित नहीं करेगा-
5715 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(i) 1961 के अजधजनयम के प्रािधानों का जपछला सचं ालन और कोई आिेि या उसके तहत जिजधित दकया गया
कृत्य या हाजन; या
(ii) 1961 के अजधजनयम या उस अजधजनयम के तहत आििे ों के तहत प्राप्त, अर्भित या दकए गए दकसी भी
अजधकार, जििेषाजधकार, िेनिारी या िाजयत्ि;
और िबदक, आयकर अजधजनयम, 2025 (2025 का 30) की धारा 536(2)(ग) म ें प्रािधान ह ै दक 1 अप्रैल, 2026
स े पहले िुरू होन े िाले दकसी भी कर िषड के संबंध में 1961 के अजधजनयम के प्रािधान आयकर अजधजनयम, 2025 (2025
का 30) के िुरू होने की तारीख को लंजबत दकसी भी कायडिाही पर और 1 अप्रैल, 2026 को या उसके बाि िुरू की गई
दकसी भी कायडिाही पर लागू रहेंगे (नोरटस सजहत जनधाडरण, पुन:जनधाडरण, पुनगडणना, सुधार, िुमाडना, संिभ,ड संिोधन और
अपील सजहत) और ऐसी कायडिाही 1961 के अजधजनयम म ें जनर्दिष्ट कायडिाही के अनसु ार की िाएगी;
और िबदक, आयकर अजधजनयम, 2025 (2025 का 30) की धारा 536(2)(ई) म ें प्रािधान ह ै दक दकसी भी
आयकर प्राजधकरण या जनरस्ट्त आयकर अजधजनयम, अपीलीय न्यायाजधकरण, या दकसी भी अिालत के तहत गरित दकसी
अन्य प्राजधकरण के समक्ष इसके िुरू होने की तारीख को लजं बत कोई भी कायडिाही, आिेिन, अपील, संिभड या संिोधन के
माध्यम स े या दकसी अन्य माध्यम स,े िारी रखा और जनपटाया िाएगा िबदक यह अजधजनयम अजधजनयजमत नहीं दकया
गया था;
अत: केंद्र सरकार अब, आयकर अजधजनयम, 2025 (2025 का 30) की धारा 536(2)( क) स े (ग) और (ङ) के
प्रािधानों के अनुसरण म,ें एतद्द्वारा 1961 के अजधजनयम की धारा 10 (46) के प्रयोिनों के जलए " िुल्क जिजनयमन
प्राजधकरण (पैन: AAAJF0167B)", िो दक महाराष्ट्र राज्य सरकार द्वारा गरित एक प्राजधकरण ह,ै उस प्राजधकरण को
उत्पन्न होने िाली जनम्नजलजखत जिजनर्दिष्ट आय के संबंध म,ें अथाडत्: -
(क) जनिी व्यािसाजयक जिक्षण संस्ट्थानों द्वारा िये प्रसंस्ट्करण िुल्क, ब्याि, िुमाडना और अन्य िुल्क;
(ख) महाराष्ट्र सरकार स ेप्राप्त प्रजतपूर्भत/अनिु ान; और
(ग) बैंक िमा और अन्य जनिेिों पर ब्याि स ेप्राप्त आय।
2. यह अजधसचू ना इन ितों के अधीन लागू होगी दक िुल्क जिजनयमन प्राजधकरण –
(क) दकसी भी व्यािसाजयक कायडकलाप म ें सजं लप्त नहीं होगी;
(ख) इसके कायडकलाप और जनर्दिष्ट आय की प्रकृजत पूरे जित्तीय िषड म ेंअपररिर्भतत रहेगी; तथा
(ग) 1961 के अजधजनयम के 139(4ग)(छ) के प्रािधानों के अनुसार आय की जििरणी िाजखल करेगी।
3. इन ितों का पालन करने म ें जिफलता के पररणामस्ट्िरूप 1961 के अजधजनयम के प्रािधानों के तहत िडं ात्मक
कारडिाई िुरू की िाएगी, और 1961 के अजधजनयम की धारा 10(46) के तहत िी गई छूट िापस ले ली िाएगी।[भाग II—खण्ड 3(ii)] भारत का रािपत्र : असाधारण 3
4. यह अजधसचू ना जित्तीय िष ड 2021-22, 2022-23, 2023-24, 2024-25 और 2025-26 से संबजं धत
जनधाडरण िषड 2022-23, 2023-24, 2024-25, 2025-26 और 2026-27 के जलए लागू मानी िाएगी।
[अजधसूचना सं. 98 /2026/ फा. स.ं 300196/7/2018-आईटीए-I]
हरिेि ससह, अिर सजचि
स्ट्पष्टीकरण सबं जं धत ज्ञापन
यह प्रमाजणत दकया िाता ह ैदक इस अजधसचू ना को पूिडव्यापी प्रभाि (केंद्रीय प्रत्यक्ष कर बोडड या आयकर जिभाग के समक्ष
िायर दकए गए आिेिन के िषड स)े िेने स े दकसी भी व्यजि के जहतों पर प्रजतकूल प्रभाि नहीं पड़ रहा है।
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.