**Executive Summary**
The Ministry of Finance, via the Central Board of Direct Taxes, has issued notification S.O. 1579(E) granting tax exemptions to the ‘Visakhapatnam Special Economic Zone Authority’ under Section 10(46) of the Income-tax Act, 1961. The exemption applies to specific income sources for the period covering Financial Years 2023-24 to 2027-28 (Assessment Years 2024-25 to 2028-29). Continued eligibility is strictly contingent upon the Authority’s adherence to non-commercial operational standards and mandatory filing requirements.
**Key Points / Main Content**
**Specified Exempt Income Streams**
* **Property and Infrastructure:** Lease rent (at government rates), allotment fees for standard design factories, and transfer charges for plots/buildings.
* **Administrative Fees:** Receipts from I-Card and permit fees, processing fees for building plans, and fees for issuing NOCs or Form-I exemptions.
* **Auction and Usage:** Auction or bid amounts from vacant plots/buildings and site usage charges from service providers.
* **Staff and Financials:** License fees for staff quarters and interest earned on bank deposits.
**Mandatory Conditions for Exemption**
* **Commercial Restriction:** The Authority is prohibited from engaging in any form of commercial activity.
* **Consistency:** The nature of the specified income and the Authority's activities must remain unchanged throughout the relevant financial years.
* **Statutory Filing:** The Authority must file its return of income in accordance with Section 139(4C)(g) of the Income-tax Act, 1961.
**Period of Applicability**
* **Retroactive Period:** Assessment Years 2024-25 and 2025-26 (relating to Financial Years 2023-24 and 2024-25).
* **Prospective Period:** Assessment Years 2026-27 to 2028-29 (relating to Financial Years 2025-26 to 2027-28).
**Enforcement and Penalties**
* Failure to comply with the specified conditions may result in the withdrawal of the tax exemption and the initiation of penal actions under the Income-tax Act.
**Impact Analysis**
**Visakhapatnam Special Economic Zone Authority**
**Impact**
The Authority is the primary beneficiary, gaining tax-exempt status on ten specific categories of income. This exemption is applied both retroactively and prospectively over a five-year financial span.
**Action Required**
The Authority must refrain from commercial activities, ensure its income sources remain consistent with the notification, and strictly adhere to the filing requirements under Section 139(4C)(g).
**Central Board of Direct Taxes (CBDT) / Income Tax Department**
**Impact**
The Department is responsible for regulating the exemption and ensuring that the revenue lost through this notification is restricted to the specific categories mentioned.
**Action Required**
The Department must monitor the Authority’s annual returns and operational activities to verify compliance with the conditions, and initiate penal action or withdraw exemptions if violations occur.
Key Entities Referenced
Visakhapatnam Special Economic Zone Authority: The primary subject of the notification; a government-constituted authority whose specified incomes are granted tax exemptions.
Income-tax Act, 1961: The principal legislation (specifically Section 10(46)) providing the legal basis for notifying bodies for tax exemptions and governing their compliance.
Central Board of Direct Taxes: The primary regulatory body under the Ministry of Finance responsible for administering direct tax laws and issuing this notification.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-25032026-271292
CG-DxLx-xEG-I2D5H0x3x2x0 26-271292
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 1514] नई दिल्ली, बधु िार , माच ड25, 2026/चत्रै 4, 1948 13, 1947 26/पौष 17, 1947
No. 1514] NEW DELHI, WEDNESDAY, MARCH 25, 2026/CHAITRA 4, 1948 ss, 1947 /PAUSHA 17, 1947
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केन्द्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल्ली, 25 माचड, 2026
का.आ. 1579(अ).— केंर सरकार, आयकर अजधजनयम, 1961 (1961 का 43) की धारा 10 के खडं
(46) द्वारा प्रित्त िजियों का प्रयोग करते हुए, एतद्द्वारा, उि खंड के प्रयोिनों के जलए, ‘जििाखापत्तनम जििेष
आर्थडक क्षेत्र प्राजधकरण’(पैन: AAALV1367K), िो दक केंर सरकार द्वारा गठित प्राजधकरण ह,ै को इसे होन े
िाली जनम्नजलजखत जिजनर्िडष्ट आय के संबंध में अजधसूजचत करती ह,ै अथाडत्:-
क) पट्टा दकराया (सरकार द्वारा जनधाडठरत िर के अनुसार िसूला िाएगा)
ख) पहचान पत्र और परजमट िल्ु क से प्राप्त आय
ग) मानक जडिाइन कारखानों से सबं ंजधत आिंटन िल्ु क
घ) ठरि हो िान े िाल ेभूखंडों/भिनों के मामल े में नीलामी/बोली की राजि
ङ) भूखंड/भिन के संबंध में अंतरण िुल्क
च) भिन योिनाओं की छूट हते ु प्रपत्र-I िारी करन े संबंधी िल्ु क
छ) भिन योिनाओं की स्ट्िीकृजत, एनओसी िारी करन,े आदि संबधं ी प्रसंस्ट्करण िल्ु क
2192 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
ि) सेिा प्रिाताओं से साइट उपयोग िल्ु क
झ) कमडचाठरयों को कमडचारी क्वाटसड आिंठटत करन े संबंधी लाइसेंस िुल्क
ञ) बैंक िमा पर ब्याि
2. यह अजधसूचना इन ितों के अधीन प्रभािी होगी दक जििाखापत्तनम जििेष आर्थडक क्षेत्र प्राजधकरण-
(क) दकसी भी प्रकार की व्यािसाजयक गजतजिजध म ेंसंलग्न नहीं होगा;
(ख) इसके दियाकलापों और जनर्िडष्ट आय की प्रकृजत परू े जित्तीय िषों के िौरान अपठरिर्तडत रहगें ी; और
(ग) आयकर अजधजनयम, 1961 की धारा 139 की उपधारा (4ग) के खंड (छ) के प्रािधान के अनुसार आय
का ठरटनड िाजखल करेगा।
2.1 इन ितों का पालन न करन े पर आयकर अजधजनयम, 1961 के प्रािधानों के तहत िडं ात्मक कारडिाई
िुरू की िा सकती ह ैऔर इस अजधजनयम की धारा 10(46) के तहत िी गई छूट िापस ली िा सकती ह।ै
3. यह अजधसूचना जित्तीय िषड 2023-24 और 2024-25 से संबंजधत जनधाडरण िषड 2024-25 और 2025-
26 के जलए लागू हुई मानी िाएगी और जित्तीय िषड 2025-26 से 2027-28 से संबंजधत जनधारड ण िषड 2026-27 से 2028-
29 के जलए लागू होगी।
[अजधसूचना स.ं 32/2026/फा.सं. 300196/67/2024-ITA-I]
हरिेि ससंह, अिर सजचि
व्याख्यात्मक ज्ञापन
प्रमाजणत दकया िाता ह ैदक इस अजधसूचना को पूिडव्यापी प्रभाि से (बोड/डजिभाग के समक्ष आिेिन दकए िाने के िषड स)े
लाग ूकरन े से दकसी भी व्यजि पर प्रजतकूल प्रभाि नहीं पड़ रहा ह।ै
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 25th March, 2026
S.O. 1579(E).— In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961
(43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Visakhapatnam Special
Economic Zone Authority’ (PAN:AAALV1367K) an authority constituted by the Central Government, in respect of the
following specified income arising to that council, namely:-
(a) Lease rent (charged as per Government prescribed rate)
(b) Receipts from I-Card and Permit fee
(c) Allotment fee in respect of standard design factories
(d) Auction/Bid amount in case plots/building which fall vacant
(e) Transfer charges in respect of Plot/building
(f) Fees for issue of Form-I for exemption of building plans
(g) Processing fee for approval of building plans, conveying NOC’s etc.
(h) Site usage charges from service providers
(i) License fee for allotment of staff quarters to the staff
(j) Interest on bank deposits
2. This notification shall be effective subject to the conditions that Visakhapatnam Special Economic Zone
Authority -
(a) shall not engage in any commercial activity;[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
(b) 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 clause (g) of sub-section (4C) of section
139 of the Income-tax Act, 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 the exemption granted u/s 10(46) of the Act.
4. This notification shall be deemed to have been applied for assessment year 2024-25 & 2025-26 relevant for the
financial year 2023-24 & 2024-25 and shall be applicable for assessment year 2026-27 to 2028-29 relevant for the
financial year 2025-26 to 2027-28.
[Notification No. 32/2026/ F.No. 300196/67/2024-ITA-I]
HARDEV SINGH, Under Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving effect (from the year of filing application before
CBDT/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.