The Central Government issued a notification on June 16, 2025, giving income tax exemption to the Haryana Real Estate Regulatory Authority, Gurugram (HRERA), under Section 10(46) of the Income Tax Act, 1961.
Janvi | Jun 18, 2025 |
Haryana Real Estate Regulatory Authority Gets Income Tax Exemption Under Section 10(46)
The Central Government issued a notification on June 16, 2025, giving income tax exemption to the Haryana Real Estate Regulatory Authority, Gurugram (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 powers afforded to it by clause (46) of Section 10 of the Income Tax Act, 1961.
The notification only applies to the Haryana Real Estate Regulatory Authority, Gurugram, with PAN AAAGH0586F. The authority 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 recognises HRERA’s legislative function as a regulator and not a commercial body; therefore, the regulator income is tax payable.
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 which are 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, and 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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