**Executive Summary**
This notification, issued by the Central Board of Direct Taxes on July 13, 2026, grants income tax exemptions to the Baddi Barotiwala Nalagarh Development Authority for specific income streams. The exemption is granted under the transition from the Income-tax Act, 1961 to the Income-tax Act, 2025, and applies retrospectively to assessment years 2019-20 through 2023-24. Continued eligibility is contingent upon the Authority's adherence to strict operational conditions and filing requirements.
**Key Points / Main Content**
**Legal Framework and Continuity**
* The Income-tax Act, 1961, was repealed by the Income-tax Act, 2025; however, section 536(2) of the new Act preserves the previous operation of the 1961 Act regarding rights, liabilities, and pending proceedings.
* Proceedings initiated before April 1, 2026, or those relating to tax years beginning before that date, will continue to be processed under the procedures specified in the 1961 Act.
**Specified Exempted Income**
The tax exemption for the Baddi Barotiwala Nalagarh Development Authority (PAN AAALB0528J) applies only to:
* Grants received from the Central Government or the State Government of Himachal Pradesh.
* Revenue receipts collected under the Himachal Pradesh Town and Country Planning Act, 1977.
* Interest earned on bank deposits.
**Mandatory Conditions for Exemption**
To remain eligible for the exemption, the Authority must meet the following criteria:
* It shall not engage in any commercial activity.
* The nature of its activities and the specified income must remain unchanged throughout the financial years.
* It must file income tax returns in accordance with Section 139(4C)(g) of the Income-tax Act, 1961.
**Effective Period**
* The notification is retrospectively effective for the assessment years 2019-20, 2020-21, 2021-22, 2022-23, and 2023-24.
* These assessment years correspond to the financial years 2018-19 through 2022-23.
**Consequences of Non-Compliance**
* Failure to comply with the specified conditions will result in the withdrawal of the tax exemption.
* Non-compliance will also trigger the initiation of penal actions under the provisions of the Income-tax Act, 1961.
**Impact Analysis**
**Baddi Barotiwala Nalagarh Development Authority**
**Impact**
The Authority receives legal clarity and tax relief on its primary revenue sources for five assessment years. This retrospective exemption validates its financial standing for previous years under the transitional tax laws.
**Action Required**
The Authority must ensure that it has filed or files all relevant returns under Section 139(4C)(g). It must maintain internal controls to ensure no commercial activities are undertaken and that the nature of its specified income remains consistent with the notification to avoid penal actions or the loss of exempt status.
Key Entities Referenced
Baddi Barotiwala Nalagarh Development Authority: An authority constituted by the Himachal Pradesh state government, notified as an exempt entity for specific income categories under the Income-tax Act.
Income-tax Act, 1961: The primary legislation under which section 10(46) provides for tax exemptions on the specified income of notified bodies or authorities.
Income-tax Act, 2025: The legislation that repealed the 1961 Act while maintaining the continuity of certain tax proceedings and exemptions through saving provisions in Section 536.
Central Board of Direct Taxes (CBDT): The regulatory body under the Ministry of Finance responsible for administering direct tax laws and issuing this notification.
Himachal Pradesh Town and Country Planning Act, 1977: State legislation under which the Baddi Barotiwala Nalagarh Development Authority collects revenue receipts eligible for tax exemption.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-13072026-274444
CG-DxLx-xEG-I1D3H0x7x2x0 26-274444
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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
सं. 3636] नई दिल्ली, सोमिार, िलु ाई 13, 2026/आषाढ 22, 1948
No. 3636] NEW DELHI, MONDAY, JULY 13, 2026/ASHADHA 22, 1948
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केंद्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल्ली, 13 िुलाई, 2026
का.आ. 3798(अ).— िहााँ दक, आयकर अजधजनयम, 1961 (1961 का 43) की धारा 10 (46) में कजतपय जनकायों
या प्राजधकरणों या बोडों या रस्ट्टों या आयोगों की जनर्िडष्ट आय को छूट दिय ेिाने का प्रािधान दकया गया ह,ै जिन्ह ेंकेंद्र सरकार
द्वारा उस धारा के प्रयोिनों के जलए सरकारी रािपत्र म ेंअजधसजू चत दकया िा सकता ह;ै
और िहााँ दक, आयकर अजधजनयम, 1961 (1961 का 43) को आयकर अजधजनयम, 2025 (2025 का 30) की धारा
536 (1) द्वारा जनरस्ट्त कर दिया गया ह;ै
और िहा ाँ दक, आयकर अजधजनयम, 2025 (2025 का 30) की धारा 536(2)(क) और (ख) म,ें अन्य बातों के साथ,
यह प्रािधान ह ै दक आयकर अजधजनयम, 1961 (1961 का 43) (एतजममन ् पश्चात जिसे 1961 का अजधजनयम कहा गया ह)ै
के जनरसन के बाििूि और उसकी उपधारा (4) के अधीन रहत े हुए, जनम्नजलजखत पर कुछ भी प्रभाि नहीं पडगे ा,यथा;-
(i) 1961 के अजधजनयम के प्रािधानों का पूिड प्रचालन और उसके तहत जिजधित रूप स े िारी दकया गया कोई
आिेि या दकया गया कोई काय;ड या
5270 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(ii) 1961 के अजधजनयम या उस अजधजनयम के तहत िारी आििे ों के अंतगडत प्राप्त, अर्ितड या उत्पन्न कोई भी
अजधकार, जििेषाजधकार, िाजयत्ि या िेनिारी;
और िहा ाँ दक, आयकर अजधजनयम, 2025 (2025 का30) की धारा 536(2)(ग) म ें यह प्रािधान ह ै दक 1961 के
अजधजनयम के प्रािधान आयकर अजधजनयम, 2025 (2025 का 30) के प्रारंभ होने की जतजथ को लंजबत दकसी भी कायडिाही
और 1 अप्रैल, 2026 के बाि िरूु की गई दकसी भी कायडिाही (जिसम ेंनोटटस, जनधाडरण, पनु जनधाडरण, पुनसणं ना, त्रुटट-सुधार,
िुमाडना, संिभड, पनु रीक्षण और अपील िाजमल भी ह)ैं पर 1 अप्रैल, 2026 स ेपहले िुरू होन ेिाले दकसी भी कर िषड के संबंध
में लागू होत े रहगें े और ऐसी कायडिाही 1961 के अजधजनयम म ेंजनर्िडष्ट प्रदिया के अनुसार पूरी की िाएगी;
और िहााँ दक, आयकर अजधजनयम, 2025 (2025 का 30) की धारा 536(2)(ङ) म ें यह प्रािधान ह ै दक इस
अजधजनयम के प्रारंभ होन े की जतजथ को दकसी आयकर प्राजधकरण या जनरस्ट्त आयकर अजधजनयम के तहत गटित दकसी अन्य
प्राजधकरण, अपीलीय न्यायाजधकरण या दकसी न्यायालय के समक्ष आिेिन, अपील, संिभ ड या पुनरीक्षण या दकसी अन्य रूप
में लंजबत कोई भी कायडिाही उसी प्रकार िारी रखी िाएगी और उसका जनपटारा दकया िाएगा िैसे दक मानो यह अजधजनयम
अजधजनयजमत नहीं दकया गया ह;ै
अतः, अब, आयकर अजधजनयम, 2025 (2025 का 30) की धारा 536(2)(क) स े (ग) और (ङ) के प्रािधानों के
अनुपालन म,ें केंद्र सरकार, एतद्द्वारा, 1961 के अजधजनयम की धारा 10 (46) के प्रयोिनों के जलए, जहमाचल प्रििे राज्य
सरकार द्वारा गटित प्राजधकरण, "बद्दी बरोटीिाला नालागढ़ जिकास प्राजधकरण (पैन AAALB0528J)" को जनम्नजलजखत
जनर्िडष्ट आय के संबंध म ेंअजधसूजचत करती ह,ै यथा:-
(क) केंद्र सरकार या जहमाचल प्रिेि राज्य सरकार स ेप्राप्त अनुिान;
(ख) जहमाचल प्रििे नगर एि ं ग्राम जनयोिन अजधजनयम, 1977 (जहमाचल प्रििे अजधजनयम 1977 का 12) के
अंतगतड रािस्ट्ि प्राजप्तयां; और
(ग) बैंक जमा पर ब्याज।
2. यह अजधसूचना दक इस ितों के अधीन प्रभािी होगी बद्दी बरोटीिाला नालागढ़ जिकास प्राजधकरण
(क) दकसी भी िाजणजज्यक गजतजिजध म ेंसंलग्न नहीं होगा;
(ख) इसकी गजतजिजधयााँ और जनर्िडष्ट आय की प्रकृजत परू े जित्तीय िषों के िौरान अपटरिर्तडत रहगें ी; तथा
(ग) 1961 के अजधजनयम की धारा 139(4ग) (छ) के प्रािधानों के अनुसार आय की जििरणी िाजखल करेगा।
3. इन ितों का पालन करन ेम ेंजिफलता की जस्ट्थजत म ें1961 के अजधजनयम के प्रािधानों के तहत िंडात्मक कारडिाई िरूु की
िाएगी और 1961 के अजधजनयम की धारा 10(46) के तहत िी गई छूट िापस ल ेली िाएगी।
4. यह अजधसूचना जित्तीय िषड 2018-2019, 2019-2020, 2020-2021, 2021-2022 और 2022-23 स ेसंबंजधत िमिः
जनधाडरण िषड 2019-2020, 2020-2021, 2021-2022 , 2022-2023 और 2023-2024 के जलए लागू मानी िाएगी।
[स.ं 82 /2026/फा. स.ं 300196/45/2025-आईटीए-I]
हरिेि ससंह, अिर सजचि
स्ट्पष्टीकरण ज्ञापन
प्रमाजणत दकया िाता ह ै दक इस अजधसूचना को पूिडव्यापी प्रभाि से (बोडड या आयकर जिभाग के समक्ष
आिेिन िाजखल करने के िषड से) लागू करन े से दकसी भी व्यजि के जहतों पर प्रजतकूल प्रभाि नहीं पड रहा ह।ै[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 13th July, 2026
S.O. 3798(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 1st 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, “Baddi
Barotiwala Nalagarh Development Authority (PAN AAALB0528J)", an authority constituted by the State Government
of Himachal Pradesh, in respect of the following specified income arising to that Authority, namely:-
(a) grants received from the Central Government or the State Government of Himachal Pradesh;
(b) revenue receipts under the Himachal Pradesh Town and Country Planning Act, 1977 (Himachal
Pradesh Act 12 of 1977); and
(c) interest on bank deposits.
2. This notification shall be effective subject to the conditions that the Baddi Barotiwala Nalagarh Development
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 provisions of section 139(4C)(g) of the Act of 1961.
3. Failure to comply with these conditions shall result in the initiation of penal actions under the provisions of the Act
of 1961, and withdrawal of exemption granted under section 10(46) of the Act of 1961.
4. This notification shall be deemed to have been applied for the assessment years 2019-20, 2020-21, 2021-22, 2022-23
and 2023-24 relevant to the financial years 2018-19, 2019-20, 2020-21, 2021-22 and 2022-23.
[No. 82 /2026/F. No. 300196/45/2025-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.