Greater Noida Industrial Development Authority Notified for Income Tax Exemption

The Ministry of Finance, Department of Revenue, via a notification dated 10th June, 2025, issued by the Central Board of Direct Taxes (CBDT), has officially granted income tax exemption to the  GNIDA (Greater Noida Industrial Development Authority).

In reference to the official notification [S.O. 2528(E)], the exemption has been awarded to the industry under Section 10(46A)(b) of the Income-tax Act, 1961, which allows the Central Government to declare certain government bodies or authorities as tax-exempt when they satisfy certain statutory conditions.

Section 10(46A) is a relatively recent provision in the Income Tax Act that allows tax relief to certain government authorities engaged in developmental or regulatory activities. The aim of this provision is to support industrial growth and urban infrastructure, especially in rapidly developing hubs like Greater Noida.

The GNIDA has been established under the U.P. Industrial Area Development Act, 1976, and works with the objective of promoting industrial and infrastructural development in the Greater Noida region.

Exemption Effective for AY 2024-25

The tax exemption awarded to the industry will be made effective from the assessment year 2024–25, which will offer a considerable relaxation in tax to GNIDA. This action will assist authorities in reinvesting resources into critical infrastructure and public development projects. The exemptions are only valid under the following conditions:

• If GNIDA continues to work under the U.P. Industrial Area Development Act, 1976, and
• Chases one or more of the purposes mentioned under Section 10(46A)(a), such as public infrastructure development, urban planning, or promotion of industrial zones.