Notification u/s 10(46) of the Income Tax Act, 1961 in the case of Haryana Real Estate Regulatory Authority, Gurugram

## Report on Notification Regarding Haryana Real Estate Regulatory Authority, Gurugram **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, concerning the Haryana Real Estate Regulatory Authority (HRERA), Gurugram. The notification, effective June 16, 2025, grants HRERA Gurugram exemption from income tax under Section 10(46) of the Income-tax Act, 1961, subject to certain conditions. This exemption applies retroactively to financial years 2018-19 to 2022-23. Key findings include the specification of income eligible for exemption and the conditions HRERA Gurugram must meet to maintain its tax-exempt status. **2. Introduction:** This report aims to provide a comprehensive overview of Notification No. 572025F, issued by the Central Board of Direct Taxes on June 16, 2025, pertaining to the Haryana Real Estate Regulatory Authority, Gurugram. The analysis is based solely on the information provided within the notification text. **3. Policy Overview:** This is a *new policy* notification. * **Core Objective(s):** The primary objective is to grant income tax exemption to the Haryana Real Estate Regulatory Authority (HRERA), Gurugram, under clause 46 of Section 10 of the Income-tax Act, 1961, for specific types of income. **4. Background and Rationale:** As this is a new policy notification granting an exemption, the likely problem/issue it addresses is the potential tax liability of HRERA, Gurugram, on its income. By providing this exemption, the government aims to support the financial stability and operational effectiveness of the Authority in fulfilling its regulatory duties under the Real Estate (Regulation and Development) Act, 2016. **5. Key Provisions / Changes:** This is a *new policy*. The key provisions of the notification are as follows: * **Tax Exemption:** The Haryana Real Estate Regulatory Authority, Gurugram, is granted exemption from income tax under Section 10(46) of the Income-tax Act, 1961. * **Specified Income:** The exemption applies to the following types of income: * Amount received as Grant-in-aid or loan/advance from the Government. * Fee/penalty received from builders/developers, agents, or any other stakeholders as per the provisions of the Real Estate (Regulation and Development) Act, 2016. * Interest earned on (a) and (b) above. * **Conditions for Exemption:** The exemption is subject to the following conditions: * HRERA Gurugram shall not engage in any commercial activity. * Activities and the nature of the specified income shall remain unchanged throughout the financial years. * HRERA Gurugram shall file a return of income in accordance with clause (g) of subsection (4C) of section 139 of the Income-tax Act, 1961. * **Retrospective Application:** The notification is applied retrospectively to the financial years 2018-19 to 2022-23, relevant to assessment years 2019-20 to 2023-24. **6. Target Audience and Stakeholders:** Based on the provided text, the following are directly affected: * **Haryana Real Estate Regulatory Authority, Gurugram:** The primary beneficiary and subject of the notification. * **Builders/Developers, Agents, and other stakeholders** operating under the jurisdiction of HRERA Gurugram. Tax liabilities for RERA Gurugram related to fees and penalties paid by these stakeholders are affected. * **Central Board of Direct Taxes (CBDT):** The issuing authority responsible for administering the notification. * **Ministry of Finance, Department of Revenue:** The parent ministry overseeing the CBDT. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Central Board of Direct Taxes is responsible for issuing and administering the notification. HRERA Gurugram is responsible for adhering to the conditions outlined in the notification to maintain its tax-exempt status. * **Timelines/Procedures:** The notification is effective from June 16, 2025, and applies retrospectively to the financial years 2018-19 to 2022-23. HRERA Gurugram is required to file a return of income according to the provisions of the Income-tax Act, 1961. The specific procedures for claiming the exemption and filing the return of income are not detailed in the provided text. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this notification are: * **Financial Stability for HRERA Gurugram:** The tax exemption should improve the financial position of HRERA Gurugram, allowing it to allocate more resources to its regulatory functions. * **Compliance with RERA Act:** By ensuring the financial viability of the regulatory authority, the notification indirectly supports compliance with the Real Estate (Regulation and Development) Act, 2016. * **Reduced Tax Burden:** HRERA Gurugram will have a reduced tax burden for the specified income, easing financial pressure. * **Enhanced Regulatory Effectiveness:** Freeing up resources through tax exemption may allow HRERA Gurugram to better fulfill its regulatory obligations. **9. Conclusion:** The notification regarding the Haryana Real Estate Regulatory Authority, Gurugram, is a significant policy decision that grants income tax exemption to the Authority for specific income types, subject to certain conditions. This exemption, applied retroactively, is expected to improve HRERA Gurugram's financial stability and enhance its effectiveness in regulating the real estate sector in Haryana. By ensuring the financial viability of HRERA, Gurugram, this policy aims to indirectly improve compliance with the Real Estate Regulation and Development Act, 2016.

Key Entities Referenced