Notification u/s 10(46A) of the Income Tax Act, 1961 in the case of Greater Noida Industrial Development Authority

## Report on Notification Regarding Income Tax Exemption for Greater Noida Industrial Development Authority **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, concerning income tax exemption for the Greater Noida Industrial Development Authority (GNIDA). The notification, effective from the assessment year 2024-25, grants GNIDA exemption under section 10(46A) of the Income-tax Act, 1961, provided it continues to operate as an authority under the U.P. Industrial Area Development Act, 1976, fulfilling the specified purposes. The report details the basis for, key provisions of, and expected impact of this notification. **2. Introduction:** This report aims to provide a comprehensive overview of the notification S.O. 2528(E), issued on June 10, 2025, regarding income tax exemption granted to the Greater Noida Industrial Development Authority (GNIDA) based on the provided text. The report focuses on the policy's objectives, provisions, target audience, and potential impact, as inferred from the notification itself. **3. Policy Overview:** This is a *new* policy granting an exemption. * **Core Objective(s):** To grant income tax exemption to the Greater Noida Industrial Development Authority (GNIDA) under Section 10(46A) of the Income-tax Act, 1961, enabling it to operate with certain tax benefits, conditionally. **4. Background and Rationale:** This notification appears to address the need to provide financial incentives and support to industrial development authorities. By granting income tax exemptions, the government likely intends to facilitate and encourage infrastructure development and industrial growth within the Greater Noida region. This is inferred from the fact GNIDA is constituted under the U.P. Industrial Area Development Act, suggesting the government wishes to support such entities. **5. Key Provisions / Changes:** As this is a new policy, this section covers the primary provisions: * **Exemption Grant:** The core provision is the granting of income tax exemption to GNIDA under sub-clause (b) of clause 46A of section 10 of the Income-tax Act, 1961. * **Eligibility Criteria:** The exemption is conditional. GNIDA must continue to be an authority constituted under the U.P. Industrial Area Development Act, 1976. It also needs to fulfill one or more of the purposes specified in subclause (a) of clause 46A of Section 10 of the Income-tax Act. * **Effective Date:** The notification is effective from the assessment year 2024-25. **6. Target Audience and Stakeholders:** The primary target audience is the Greater Noida Industrial Development Authority (GNIDA) itself. Secondary stakeholders include businesses and individuals operating within the Greater Noida industrial area, who might indirectly benefit from the potentially enhanced infrastructure and development facilitated by GNIDA's tax-exempt status. U.P. Industrial Area Development Act, 1976 is another stakeholder. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, is the issuing authority. GNIDA is responsible for complying with the conditions to maintain the exemption. * **Timelines/Procedures:** The notification is effective from the assessment year 2024-25. GNIDA must ensure continued compliance with the U.P. Industrial Area Development Act, 1976 and the purposes specified under the Income-tax Act to maintain its tax-exempt status. **8. Expected Outcomes / Impact of Changes:** The intended outcome is likely to bolster GNIDA's financial capabilities, enabling it to invest more effectively in infrastructure development and industrial promotion within the Greater Noida region. This may attract more investment, stimulate economic activity, and create employment opportunities. **9. Conclusion:** The notification grants a conditional income tax exemption to the Greater Noida Industrial Development Authority (GNIDA), effective from the assessment year 2024-25. This move aims to financially strengthen GNIDA and, in turn, foster industrial development within the Greater Noida area. The notification's impact hinges on GNIDA's continued compliance with the stated conditions and its effective utilization of the tax benefits to promote industrial growth.

Key Entities Referenced