**Executive Summary**
This notification, issued by the Central Board of Direct Taxes on July 2, 2026, grants income tax exemptions to the ‘Mussoorie Dehradun Development Authority’ (MDDA) under the Income-tax Act, 2025, and the Income-tax Act, 1961. The exemption applies retrospectively for the financial years 2021-22 and 2022-23 (Assessment Years 2022-23 and 2023-24). To maintain this status, the MDDA must adhere to specific operational conditions, including filing returns and avoiding commercial activities.
**Key Points / Main Content**
**Exempted Income Categories**
* Grants, loans, and advances received from the Government of Uttarakhand.
* Fees, charges, and income levied under the Uttarakhand Urban and Country Planning and Development Act, 1973.
* Income generated from the disposal of land, buildings, and other movable or immovable properties.
* Income derived from lease or rent agreements.
* Interest earned on bank deposits.
**Mandatory Conditions for Authority**
* **No Commercial Activity:** The MDDA is strictly prohibited from engaging in any commercial activities.
* **Consistency:** The nature of the MDDA’s activities and its specified income streams must remain unchanged throughout the relevant financial years.
* **Statutory Filings:** The Authority must file its return of income in accordance with Section 139(4C)(g) of the Income-tax Act, 1961.
**Legal and Procedural Framework**
* **Transition of Acts:** Although the Income-tax Act, 1961 was repealed by the Income-tax Act, 2025, provisions for pending proceedings, rights, and specific exemptions are preserved under Section 536 of the new Act.
* **Retrospective Application:** The notification applies to past Assessment Years (2022-23 and 2023-24), with an explanatory memorandum certifying that this retrospective effect does not adversely affect any person’s interests.
* **Consequences of Non-Compliance:** Failure to meet the specified conditions will result in the withdrawal of the exemption and the initiation of penal actions under the 1961 Act.
**Impact Analysis**
**Mussoorie Dehradun Development Authority (MDDA)**
**Impact**
The Authority is granted a tax-exempt status for specific revenue streams for the 2021-22 and 2022-23 financial years, potentially reducing its historical tax liability.
**Action Required**
MDDA must ensure it has filed the required income tax returns and must verify that its activities during those periods remained non-commercial and consistent with the notified income types.
**Central Board of Direct Taxes / Income Tax Department**
**Impact**
The department is legally bound to recognize MDDA’s exempt status for the specified years, despite the repeal of the 1961 Act.
**Action Required**
Tax authorities must process MDDA's filings based on these exemptions and monitor for any breaches of the non-commercial activity condition to determine if penal actions or exemption withdrawals are necessary.
**Government of Uttarakhand**
**Impact**
The state-constituted authority (MDDA) receives financial relief, ensuring that grants and local development fees are not diminished by federal income tax.
**Action Required**
No direct action is mentioned, though the state must ensure the MDDA continues to operate within the scope of the Uttarakhand Urban and Country Planning and Development Act, 1973.
Key Entities Referenced
Mussoorie Dehradun Development Authority: The specific body constituted by the Government of Uttarakhand that is granted income tax exemptions under this notification.
Income-tax Act, 1961: The primary legislation under which the exemption is granted, specifically referencing Section 10(46) for specified income.
Income-tax Act, 2025: The legislation that repealed the 1961 Act but provides for the continuation of certain tax proceedings and notifications under Section 536.
Central Board of Direct Taxes: The regulatory authority under the Ministry of Finance responsible for issuing this notification regarding tax exemptions.
Uttarakhand Urban and Country Planning and Development Act, 1973: The state act under which the Mussoorie Dehradun Development Authority levies fees and charges that are subject to tax exemption.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-02072026-274013
CG-DxLx-xEG-I0D2H0x7x2x0 26-274013
xxxGIDExxx
असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 3461] नई दिल्ली, बृहस्ट्प जतिार, िुलाई 2, 2026/आषाढ 11, 1948
No. 3461] NEW DELHI, THURSDAY, JULY 2, 2026/ASHADHA 11, 1948
जित्त मंत्रालय
(रािस्ट्ि जिभाग)
(केंद्रीय प्रत्यक्ष कर बोड)ड
अजधसचू ना
नई दिल्ली, 2 िुलाई, 2026
का.आ. 3596(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 जनर्दिष्ट आय को छूट दिय े िान े का प्रािधान दकया गया ह,ै जिन्ह ें
केंद्र सरकार द्वारा उस धारा के प्रयोिनों के जलए सरकारी रािपत्र में अजधसूजचत 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 िहााँ दक आयकर अजधजनयम, 2025 (2025 का 30) की धारा 536(2)(क) और (ख) में, 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 पडेगा,यथा;-
(i) 1961 के अजधजनयम के प्रािधानों का पूिड प्रचालन और उसके तहत जिजधित रूप से िारी दकया गया कोई
आिेि या दकया गया कोई काय;ड या
4977 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(ii) 1961 के अजधजनयम या उस अजधजनयम के तहत िारी आिेिों के अंतगडत प्राप्त, अर्जित 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 अप्रलै , 2026 के बाि िुरू की गई दकसी भी कायडिाही (जिसमें नोटटस, जनधाडरण, पुनजनधाडरण, पुनसणं ना, त्रुटट-
सुधार, िुमाडना, संिभड, पुनरीक्षण और अपील भी िाजमल ह)ैं पर 1 अप्रलै , 2026 से पहले िरूु होने िाल े दकसी भी कर िष ड
के संबंध में लाग ूहोते रहगें ेऔर ऐसी कायडिाही 1961 के अजधजनयम में जनर्दिष्ट प्रदिया के अनसु ार पूरी की िाएगी;
और िहााँ दक, आयकर अजधजनयम, 2025 (2025 का 30) की धारा 536(2)(ङ) में 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, संिभड 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) से (ग) और (ङ) के प्रािधानों के
अनुपालन म,ें केंद्र सरकार, एतद्द्वारा, अजधजनयम, 1961 की धारा 10(46) के प्रयोिनों के जलए उत्तराखंड राज्य सरकार
द्वारा गटित प्राजधकरण, 'मसूरी िेहरािनू जिकास प्राजधकरण' (पैन: AAAAM4651Q) को जनम्नजलजखत जनर्दिष्ट आय के
संबंध में अजधसूजचत करती ह,ै यथा:-
(क) उत्तराखंड सरकार स े प्राप्त अनुिान/ऋण/अजिम।
(ख) उत्तराखंड िहरी एिं िाम जनयोिन एि ं जिकास अजधजनयम, 1973 के अनुसार लगाय े गय े िुल्क/प्रभार/आय
(चाह ेइसे दकसी भी नाम स ेपुकारा िाए)
(ग) भूजम, भिनों और अन्य चल और अचल संपजत्तयों की जबिी स े होने िाली आय।
(घ) पट्टे/दकराए स े प्राप्त होने िाली आय; तथा
(ङ) बैंक िमा पर ब्याि।
2. यह अजधसूचना इन ितों के अधीन प्रभािी होगी दक मसूरी िेहरािनू जिकास प्राजधकरण -
(क) दकसी भी िाजणजज्यक गजतजिजध म ेंसंलग्न नहीं होगा;
(ख) इसकी गजतजिजधयााँ और जिजनर्दिष्ट आय की प्रकृजत पूरे जित्तीय िषों म ेंअपटरिर्जतत रहगे ी; तथा
(ग) 1961 के अजधजनयम की धारा 139 (4 ग) (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 िुरू
की िाएगी, और 1961 के अजधजनयम की धारा 10(46) के तहत िी गई छूट िापस ले ली िाएगी।
4. इस अजधसूचना को जित्तीय िषड 2021-22 और 2022-2023 के प्रासंजगक जनधाडरण िषड 2022-2023 और 2023-24
िमिः के जलए लाग ूमाना िाएगा।
[अजधसूचना सं. 73 /2026 फा. स.ं 300196/32/2021-आईटीए-I]
हरिेि ससह, अिर सजचि, आईटीए-I
स्ट्पष्टीकरण ज्ञापन
यह प्रमाजणत दकया िाता ह ैदक इस अजधसूचना को पूिडव्यापी प्रभाि से (बोडड या आयकर जिभाग के समक्ष आिेिन िाजखल
करने के िषड से प्रभािी) लागू करने 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 2nd July, 2026
S.O. 3596(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, ‘Mussoorie Dehradun Development Authority’ (PAN: AAAAM4651Q), an authority
constituted by the State Government of Uttarakhand, in respect of the following specified income arising to
that authority, namely:-
(a) Grants/loans/ advances received from Government of Uttarakhand.
(b) Fees/charges/income (by whatever name called) levied as per Uttarakhand Urban and Country
Planning and Development Act, 1973
(c) Income from disposal of lands, buildings and other movable and immovable properties.
(d) Income from lease/rent; and
(e) Interest on bank deposits.
2. This notification shall be effective subject to the conditions that the Mussoorie Dehradun 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
1961.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
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 assessment years 2022-2023 and 2023-24
relevant for the financial years 2021-22 and 2022-2023.
[Notification No. 73 /2026 F. No. 300196/32/2021-ITA-I]
HARDEV SINGH, Under Secy., ITA-I
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.
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