Noida has become tax free, know how much will you benefit from this decision of the government?

Noida tax free: Noida has become tax free. The Central Board of Direct Taxes (CBDT), in one of its historic judgment, has given exemption to Noida, New Okhla Development Authority under Section 10 (46A) of the Income Tax Act. The government has implemented this rule from Assessment Year 2024-25. This decision will further promote industrial development in Noida, one of the rapid emerging cities in the country. However, there are some conditions with this ‘tax free’ status.

Who will not have to pay tax?

This exemption given by the central government through CBDT notification number 116/2025 will be available only on non-commercial income. That is, this exemption will be given to the government bodies working in the interest of the public rather than commercial. That is, now the Noida Authority will not have to pay any tax on public assets rent, government grants and subsidies, public service fees. However, the income from the earnings of real estate, interest on investment will all come under the tax.

Complete relaxation cancell

Noida Authority will have to keep separate books for exemption and non-sixty income. That is, for the use of public, no tax will have to be paid on service, but if the authority does any work for its business profits, then you have to pay tax on it. If an overlap or abuse is found, the entire discount can be canceled, so compliance and transparency of rules is necessary.

What are its benefits?

Government officials say that this will improve infrastructure like roads, water supply, transport, drainage system, housing as the authority will not have to pay a large part of its income as tax. This money will now be invested in construction works, which will benefit the residents and traders here. This will accelerate the approval of construction and industrial projects, investors and developers will get better infrastructure.

This exemption is part of a major effort to promote tax-efficient urban planning by the Government of India. In recent years, sovereign wealth funds and pension funds investing in infrastructure projects have also been given similar tax benefits.

Also read:

India’s core infrastructure sector is moving fast, growth at three months high level in June