CBDT Grants Income Tax Exemption to West Bengal Construction Workers Welfare Board

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance recently shared a notification (No. 7/2026) regarding income tax exemption.

The Central Government, in powers given by section 10 (46) of the Income-tax Act, 1961 (43), notifies the “West Bengal Building and Other Construction Workers Welfare Board” for income tax exemption.

West Bengal Building and Other Construction Workers Welfare Board (PAN AAALW0061D) is a board established by the Government of West Bengal for the following income arising to the Board:

• Cess collected under the Building and Other Construction Workers Welfare Cess Act, 1996 (28) and the rules
• Registration fees and yearly subscriptions collected from construction workers registered with the Board as beneficiaries
• Amount received in the form of grants-in-aid and loans from government
• Interest income received from investment

This benefit will only be made effective if the board “West Bengal Building and Other Construction Workers Welfare Board”

• Will not be involved in any commercial activity
• Activities and the nature of the specified income will remain unchanged throughout the financial years.
• Will file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

If the board does not meet these requirements, it could face penalties under the Income-tax Act, 1961, and it may also lose its tax-exempt status under Section 10(46).

This notification will apply to the four financial years from 2021-22 to 2024-25 (covering assessment years 2022-23 to 2025-26), and it will also continue to apply going forward for the financial year 2025-26 (assessment year 2026-27).