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

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

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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: