Income Tax Exemption to West Bengal Municipal Development Fund Trust Under Section 10(46) [Read Notification]

The Central Board of Direct Taxes (CBDT) through the Ministry of Finance under Section 10 of the Income Tax Act  (43 of 1961) issued a notification dated August 1, 2025 to the West Bengal Municipal Development Fund Trust.

1.West Bengal Municipal Development Fund Trust is a trust constituted by the State Government of West Bengal in respect of the following specified income arising to the Trust:-

• Interest from Bank Deposits
• Interest on Term loan to Urban Local Bodies
• Upfront processing fees

2.This notification will be effective only on the following conditions:

West Bengal Municipal Development Fund Trust-

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

3.This notification will be applicable for financial years 2021-2022, 2022-2023, 2023-2024, 2024-2025 and will also apply with respect to financial year 2025-26.

Refer to the below mentioned notification for complete information: