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CBDT Grants Income Tax Exemption to Haryana RERA Under Section 10(46)

Published: June 18, 2025 | Category: Real Estate
CBDT Grants Income Tax Exemption to Haryana RERA Under Section 10(46)

The Central Board of Direct Taxes (CBDT) has granted income tax exemption to the Haryana Real Estate Regulatory Authority (HRERA) under Section 10(46) of the Income-tax Act, 1961. This decision is a significant step in supporting HRERA's role in regulating the real estate sector and protecting the interests of homebuyers.

According to the notification, the exempted income includes various categories:

- Amounts received as grants-in-aid or loans/advances from the Government - Fees and penalties collected from builders, developers, agents, or other stakeholders under the Real Estate (Regulation and Development) Act, 2016 - Interest income earned on the above receipts

HRERA, established by the Haryana government in accordance with Section 20(1) of the Real Estate (Regulation and Development) Act, 2016, plays a crucial role in the real estate industry. Its primary functions include regulating the sector, ensuring transparency, and protecting the interests of homebuyers. The authority's efforts are essential for maintaining accountability between real estate agents and developers.

The CBDT's notification makes it clear that the exemption is conditional. HRERA must not engage in any commercial activities, and the nature of its activities and income must remain unchanged throughout the relevant financial years. Additionally, HRERA is required to file its income tax returns in compliance with clause (g) of sub-section (4C) of Section 139 of the Income-tax Act.

The exemption applies to specific categories of income earned by the authority and has been made effective retrospectively for financial years 2018-19 to 2022-23, corresponding to assessment years 2019-20 to 2023-24. This retrospective application ensures that HRERA can focus on its regulatory duties without the burden of income tax liabilities for the specified period.

This move by the CBDT is expected to bolster HRERA's operational capabilities, enabling it to better serve the real estate market and the public. The exemption will help in maintaining the financial stability of the authority, which is crucial for its continued effectiveness in regulating the sector.

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Frequently Asked Questions

1. What is the Haryan
Real Estate Regulatory Authority (HRERA)? A: HRERA is a regulatory body established by the Haryana government under the Real Estate (Regulation and Development) Act, 2016. It is responsible for regulating the real estate sector, ensuring transparency, and protecting the interests of homebuyers.
2. What types of income are exempted for HRER
under Section 10(46)? A: The exempted income includes grants-in-aid or loans/advances from the Government, fees and penalties collected from real estate stakeholders, and interest income earned on these receipts.
3. What conditions are attached to the income tax exemption for HRERA?
HRERA must not engage in any commercial activities, and the nature of its activities and income must remain unchanged throughout the relevant financial years. It is also required to file its income tax returns as per the Income-tax Act.
4. For which financial years is the income tax exemption applicable?
The exemption is applicable retrospectively for financial years 2018-19 to 2022-23, corresponding to assessment years 2019-20 to 2023-24.
5. Why is this income tax exemption important for HRERA?
The exemption helps HRERA maintain financial stability, allowing it to focus on its regulatory duties and better serve the real estate market and the public.