The Central Board of Direct Taxes (CBDT) on Thursday notified income tax exemption to ‘Real Estate Regulatory Authority(RERA)’, constituted by Government in the exercise of powers conferred under Section 20(1) of the Real Estate (Regulation and Development) Act, 2016 as a ‘class of Authority’ for the purpose of exemption under section 10(46) of the Income Tax Act, 1961.
The ‘Real Estate Regulatory Authority’ as Odisha Real Estate Regulatory Authority, Jharkhand Real Estate Regulatory Authority, Real Estate Regulatory Authority, Karnataka and Andhra Pradesh Real Estate Regulatory Authority constituted by Government in the exercise of powers conferred under subsection (1) of Section 20 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016) as a ‘class of Authority’ in respect of the specified income arising to that Authority.
The specified income includes the amount received as Grant-in-aid or loan/advance from Government; Fee/penalty received from builders/developers, agents, or any other stakeholders as per the provisions of the Real Estate (Regulation and Development) Act, 2016 and Interest earned.
The Board specified the condition that each of the Real Estate Regulatory Authority shall not engage in any commercial activity; activities and the nature of the specified income shall remain unchanged throughout the financial years; shall file a return of income in accordance with the provision of clause(g) of sub-section (4C)of Section139 of the Income-tax Act, 1961; and shall file the audit report along with return, duly verified by the accountant as provided in explanation to section 288(2) of the Income-tax Act, 1961 along with a certificate from the chartered accountant that the above conditions are satisfied.
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