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

CBDT notifies West Bengal Municipal Development Fund Trust as tax exempted for specified incomes under the Section 10 of the Income Tax Act (43 of 1961).

CBDT Grants Income Tax Exemption to West Bengal Municipal Development Fund Trust

Vanshika verma

Aug 6, 2025

Last update on Aug 6, 2025

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:

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Vanshika verma

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Vanshika Verma is a Content Writer with 1+ year of experience at Studycafe.in. A B.Com graduate from Delhi University, She writes articles on Finance, Tax, ICAI, GST, and the latest financial news, with a focus on making complex topics easy for readers and professionals.