**Executive Summary**
This notification issued by the Ministry of Finance grants income tax exemptions to the ‘Chandigarh Building and Other Construction Workers Welfare Board’ under Section 10(46) of the Income-tax Act, 1961. The exemption applies to specific incomes, including cess collections and bank interest, for Financial Years 2023-24 through 2027-28. The Board must adhere to strict non-commerciality and filing requirements to maintain this tax-exempt status.
**Key Points / Main Content**
**Specified Exempt Incomes**
* Cess collected under the Building and Other Construction Worker’s Welfare Cess Act, 1996.
* Beneficiary contributions, including registration fees and annual subscriptions, under the Buildings and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.
* Interest income earned on bank deposits.
**Mandatory Conditions for Exemption**
* The Board is prohibited from engaging in any form of commercial activity.
* The nature of the Board’s activities and the specified income streams must remain unchanged throughout the relevant financial years.
* The Board must regularly file its return of income as per the provisions of Section 139(4C)(g) of the Income-tax Act, 1961.
**Period of Applicability**
* **Retrospective:** Deemed applicable for Assessment Years 2024-25 and 2025-26 (relevant to Financial Years 2023-24 and 2024-25).
* **Prospective:** Applicable for Assessment Years 2026-27 to 2028-29 (relevant to Financial Years 2025-26 to 2027-28).
**Consequences of Non-Compliance**
* Failure to comply with the specified conditions may trigger penal actions under the Income-tax Act, 1961.
* Non-compliance will result in the withdrawal of the exemption granted under Section 10(46).
**Impact Analysis**
**Stakeholder: Chandigarh Building and Other Construction Workers Welfare Board**
**Impact**
The Board (PAN: AAALC0595J) is legally recognized as a tax-exempt entity regarding its core revenue sources (cess, interest, and member fees). This retrospective and prospective exemption prevents the erosion of welfare funds through income tax liabilities for the period spanning FY 2023-24 to FY 2027-28.
**Action Required**
The Board must ensure it does not enter into commercial ventures and must maintain consistency in its activities. It is required to file annual income tax returns under Section 139(4C)(g) to remain compliant and avoid penal proceedings or the withdrawal of its exempt status.
Key Entities Referenced
Chandigarh Building and Other Construction Workers Welfare Board: The primary entity established by the Chandigarh Administration whose specified incomes from cess, contributions, and interest are notified for income tax exemption.
Income-tax Act, 1961: The principal legislation under which Section 10(46) grants the Central Government the authority to notify specific bodies for tax exemptions on specified income.
Building and Other Construction Workers’ Welfare Cess Act, 1996: The act under which cess is collected by the Board, forming a specific category of income now exempted from income tax.
Buildings and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996: The law governing beneficiary contributions (registration fees or subscriptions) paid to the Board, which are notified as tax-exempt income.
Central Board of Direct Taxes (CBDT): The regulatory body within the Ministry of Finance responsible for issuing this notification and overseeing the implementation of tax exemptions.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-30032026-271426
CG-DxLx-xEG-I3D0H0x3x2x0 26-271426
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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.ं 1591] नई दिल्ली, सोमिार, माच ड30, 2026/चत्रै 9, 1948 13, 1947 26/पौष 17, 1947
No. 1591] NEW DELHI, MONDAY, MARCH 30, 2026/CHAITRA 9, 1948 ss, 1947 /PAUSHA 17, 1947
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केन्द्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल्ली, 30 माच,ड 2026
का.आ. 1656(अ).—- केंर सरकार, आयकर अजधजनयम, 1961 (1961 का 43) की धारा 10 के खंड (46) द्वारा
प्रित्त िजियों का प्रयोग करते हुए, एतद्द्वारा, उि खंड के प्रयोिनों के जलए, ‘चंडीगढ़ भिन एि ंअन्द्य जनमाडण श्रजमक कल्याण
बोडड’ (पैन: AAALC0595J) िो चंडीगढ़ प्रिासन, श्रम जिभाग द्वारा स्ट्थाजपत एक बोडड ह ैको उस बोडड को प्राप्त होने िाली
जनम्नजलजखत जिजनर्िडष्ट आय के संबंध म ें अजधसूजचत करती ह,ै यथा:-
क. भिन एि ंअन्द्य जनमाडण श्रजमक कल्याण उपकर अजधजनयम, 1996 (1996 का 28) के अंतगडत उपकर संग्रहण
ख. लाभार्थडयों द्वारा भिन एि ं अन्द्य जनमाडण श्रजमक (रोिगार और सेिा ितों का जिजनयमन) अजधजनयम, 1996
(1996 का 27) के अतं गतड अिा दकया गया अंििान (चाह े दकसी भी नाम स े संबोजधत दकया िाए, िैसे पंिीकरण
िुल्क या िार्षडक सिस्ट्यता आदि); और
ग. बैंक िमा पर अर्िडत ब्याि।
2. यह अजधसूचना 'चंडीगढ़ भिन एि ं अन्द्य जनमाडण श्रजमक कल्याण बोड'ड इन ितों के अधीन प्रभािी होगा -
(क) दकसी भी प्रकार की व्यािसाजयक गजतजिजध म ें सलं ग्न नहीं होगा;
(ख) इसके दियाकलाप और जनर्िडष्ट आय की प्रकृजत पूरे जित्तीय िषों के िौरान अपररिर्ततड रहगें ी; और
2312 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(ग) आयकर अजधजनयम, 1961 की धारा 139 की उपधारा (4ग) के खडं (छ) के प्रािधानों के अनुसार आय का ररटन ड
िाजखल करेगा।
2.1 इन ितों का पालन न करने पर आयकर अजधजनयम, 1961 के प्रािधानों के तहत िडं ात्मक कारडिाई िुरू की िा
सकती ह ैऔर इन अजधजनयम की धारा 10(46) के तहत िी गई छूट िापस ली िा सकती ह।ै
3. यह अजधसूचना जित्तीय िष ड 2023-24 स े 2024-25 के जलए प्रासंजगक जनधाडरण िष ड 2024-25 स े 2025-26 के
जलए लागू मानी िाएगी और यह जित्तीय िषड 2025-26 स े 2027-28 के जलए प्रासंजगक जनधाडरण िषड 2026-27 स े2028-
29 के जलए लागू होगी।
[अजधसूचना स.ं 44/2026/फा. स.ं 300196/92/2024-आईटीए-I]
हरिेि ससंह, अिर सजचि
स्ट्पष्टीकरण ज्ञापन
प्रमाजणत दकया िाता ह ैदक इस अजधसूचना को पूिडव्यापी प्रभाि िेने स े[सीबीडीटी/आयकर जिभाग के समक्ष आिेिन दकए
िाने के िषड स]े 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 30th March, 2026
S.O. 1656(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, ‘Chandigarh Building and Other
Construction Workers Welfare Board’ (PAN: AAALC0595J), a Board established by the Chandigarh Administration,
Labour Department, in respect of the following specified income arising to that board, namely:-
a) Cess collection under the Building And Other Construction Worker’s Welfare Cess Act, 1996 (28 of 1996)
b) Contribution paid by the beneficiaries (whether by any name called i.e. registration fees or yearly
subscription etc.) under the Buildings And Other Construction Workers (Regulation of Employment And
Conditions of Service) Act, 1996 (27 of 1996); and
c) Interest earned on bank deposits.
2. This notification shall be effective subject to the conditions that ‘Chandigarh Building and Other Construction
Workers Welfare Board’-
(a) shall not engage in any commercial activity;
(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.
2.1 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.
3. This notification shall be deemed to have been applied for assessment year 2024-25 to 2025-26 relevant for the
financial year 2023-24 to 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. 44 /2026/F.No.300196/92/2024-ITA-I]
HARDEV SINGH, Under Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect [from the year of its application
made before the CBDT/ Income-tax Department] to this notification.
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and Published by the Controller of Publications, Delhi-110054.