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Haryana Real Estate Regulatory Authority Gains Income Tax Exemption

Published: June 18, 2025 | Category: Real Estate
Haryana Real Estate Regulatory Authority Gains Income Tax Exemption

The Central Government issued a notification on June 16, 2025, granting income tax exemption to the Haryana Real Estate Regulatory Authority (HRERA) under Section 10(46) of the Income Tax Act, 1961. The notice was published in the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, under the powers afforded to it by clause (46) of Section 10 of the Income Tax Act, 1961.

The notification applies specifically to the Haryana Real Estate Regulatory Authority, Gurugram, with PAN AAAGH0586F. HRERA was established by the Haryana State Government under the authority of subsection (1) of section 20 of the Real Estate (Regulation and Development) Act, 2016. The exemption recognizes HRERA’s legislative function as a regulator and not a commercial body; therefore, the regulator income is tax-exempt.

There are three categories of income arising to HRERA to which the exemption applies. The first category arises from amounts of grant-in-aid or loans and advances from the Government. The second category covers fees and penalties received from builders, developers, agents, or any other stakeholders as per the provisions of the Real Estate (Regulation and Development) Act, 2016. The third category is interest earned on the first and second categories mentioned above.

The notification is effective, subject to three obligations that HRERA must comply with during the exemption period. First, the Authority shall not engage in any commercial activity, maintaining its purely regulatory character. Second, activities and the nature of the specified income shall remain unchanged throughout the financial years. Third, the return of income shall be filed in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income Tax Act, 1961.

This notification will be treated as if it had been applied for the financial years 2018-19 to 2022-23 relevant to assessment years 2019-20 to 2023-24. For more details, refer to the official PDF.

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Frequently Asked Questions

1. What is the Haryan
Real Estate Regulatory Authority (HRERA)? A: The Haryana Real Estate Regulatory Authority (HRERA) is a regulatory body established by the Haryana State Government under the Real Estate (Regulation and Development) Act, 2016. It is responsible for regulating the real estate sector in Haryana to ensure transparency and protect consumer interests.
2. Why was the income tax exemption granted to HRERA?
The income tax exemption was granted to HRERA to recognize its role as a regulatory body rather than a commercial entity. This exemption ensures that the income generated by HRERA from regulatory activities is not subject to income tax.
3. What are the categories of income exempted under the notification?
The notification exempts three categories of income: (1) amounts of grant-in-aid or loans and advances from the Government, (2) fees and penalties received from builders, developers, agents, or other stakeholders, and (3) interest earned on the first and second categories.
4. What are the obligations HRER
must comply with during the exemption period? A: HRERA must comply with three obligations: (1) not engage in any commercial activity, (2) keep activities and the nature of the specified income unchanged throughout the financial years, and (3) file the return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income Tax Act, 1961.
5. For which financial years is the exemption applicable?
The exemption is applicable for the financial years 2018-19 to 2022-23, relevant to assessment years 2019-20 to 2023-24.