Noida has now been exempted from tax. The government has exempted the Noida Authority from paying tax on some of its income. The Noida Authority will spend the benefit of this exemption i.e. money on infrastructure. Noida will benefit people and businessmen. The government has implemented this new rule from Assessment Year 2024-25 under Section 10 (46A) of the Income Tax Act. This means that now the Noida Authority will not have to pay tax on many types of income.
This relief has been given by the Central Government through the notification number 116/2025 of the Central Board of Direct Taxes (CBDT). This exemption will be available only to those government bodies who are working in public interest rather than commercial, such as Noida Authority.
Which income will not be taxed?
Noida Authority will no longer have to pay tax on incomes like fare, fees, government grants. These are the services that are for public use. But if the authority does any business or profitable work, then you have to pay tax on that economy.
What will be the benefit?
According to government officials, this relief will give the Noida Authority a chance to invest more money in development works. There will be a chance to put up in the works, because now you will not have to cut tax. This can make roads, transport, housing and sewerage systems better. Business and industry will also benefit, such as project approval and better infrastructure.
What are the conditions?
These discounts are based on certain conditions. Noida has to keep separate accounts of its tax-free and taxable income. If there is a disturbance, the tax exemption can also be canceled. This decision has been taken to promote smart urban planning and public infrastructure in India. With this, Development Authorities like Noida will now be able to spend directly on public facilities, without losing their earnings in tax.