CBDT Grants Income Tax Exemption to Rajasthan RERA on Government Grants, Loans, and Fees
The Central Board of Direct Taxes (CBDT) has granted income tax exemptions to the Rajasthan Real Estate Regulatory Authority (RERA) for specific categories of income, including government grants, loans, and fees, under Section 10(46) of the Income Tax Act, 1961.
ReraIncome TaxCbdtReal EstateRajasthanReal EstateSep 23, 2025
The Rajasthan Real Estate Regulatory Authority (RERA) is a statutory body constituted by the state government under the Real Estate (Regulation and Development) Act, 2016. It is responsible for regulating the real estate sector in Rajasthan. The authority ensures the accountability of developers in real estate projects, protects the interests of homebuyers, and promotes fair practices within the real estate market.
According to the Notification No. 148 /2025/F. No. 300196/41/2025-ITA-I, specific categories of income received by the Rajasthan RERA shall be exempt from income tax. These categories include amounts received as government grants-in-aid, loans and advances from the State Government, fees and penalties collected under the provisions of the Real Estate (Regulation and Development) Act, 2016, and any interest earned on such grants, loans, fees, and penalties.
However, the exemptions are subject to certain conditions. The Rajasthan RERA must refrain from engaging in any commercial activity outside the purview of its statutory mandate. The nature of the specified incomes and the activities of the authority must remain unchanged throughout all the applicable financial years. Additionally, the authority is required to file its return of income in accordance with the provisions of Section 139(4C)(g) of the Income Tax Act, 1961.
The Notification, issued on September 22, 2025, has retrospective effect and applies to the income received by the Rajasthan Real Estate Regulatory Authority during the Assessment Years 2023-24 to 2025-26, corresponding to Financial Years 2022-23 to 2024-25. It further extends to Assessment Years 2026-27 and 2027-28, relevant to Financial Years 2025-26 and 2026-27.
This exemption is expected to provide financial relief to the Rajasthan RERA, enabling it to better fulfill its regulatory and protective roles in the real estate sector. It also aligns with the government's efforts to promote transparency and accountability in the real estate market, ultimately benefiting both developers and homebuyers.
Frequently Asked Questions
What is the Rajasthan Real Estate Regulatory Authority (RERA)?
The Rajasthan Real Estate Regulatory Authority (RERA) is a statutory body constituted by the state government under the Real Estate (Regulation and Development) Act, 2016. It is responsible for regulating the real estate sector in Rajasthan, ensuring developer accountability, and protecting homebuyers' interests.
What income categories are exempt from income tax for Rajasthan RERA?
The income categories exempt from income tax for Rajasthan RERA include government grants-in-aid, loans and advances from the State Government, fees and penalties collected under the Real Estate (Regulation and Development) Act, 2016, and any interest earned on these amounts.
What conditions must Rajasthan RERA meet to receive the income tax exemption?
Rajasthan RERA must refrain from engaging in any commercial activity outside its statutory mandate, ensure the nature of specified incomes and activities remain unchanged, and file its return of income as per Section 139(4C)(g) of the Income Tax Act, 1961.
When was the Notification for the income tax exemption issued?
The Notification for the income tax exemption was issued on September 22, 2025.
What are the applicable financial years for the income tax exemption?
The income tax exemption applies to the Assessment Years 2023-24 to 2025-26, corresponding to Financial Years 2022-23 to 2024-25, and extends to Assessment Years 2026-27 and 2027-28, relevant to Financial Years 2025-26 and 2026-27.
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