Central Board of Direct Taxation in the exercise of the powers conferred under section 10 clause (46) of the Income-tax Act, 1961 (43 of 1961), the Government has been notified for the purposes of the tax exemption in state RERA Real Estate Regulatory Authority as specified in the schedule to this notification. The Government empowered in the exercise of powers conferred under section 20 sub-section (1) of the Real Estate (Regulation & Development) (RERA) Act, 2016, as a ‘class of Authority’ in respect of the specified income arising to that Authority. The real estate project must have obtained RERA registration.
In respect to this notification the following specified income has been exempted:-
- Amount received as Grants-in-aid or loan or advance from the Government
- Fee and penalty received from developers, builders, agents or any other stakeholders in accordance with the provisions of the RERA Act, 2016
- Interest earned on both (a) and (b) above.
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Conditions of Tax exemption in RERA
The notification must be valid subject to the conditions that each of the Real Estate Regulatory Authority must follow, such as:
- It must not engage in any commercial activity
- The activities and the nature of the specified income must remain unchanged throughout the financial years
- It has to file a return of income in accordance with the provision of clause (g) of section 139 in sub-section (4C) of the Income-tax Act, 1961.
- It has to file the Audit report along with the Return, and duly verified by the accountant as provided in explanation of section 288(2) of the Income-tax Act, 1961, also along with the certificate from a chartered accountant when the above conditions are satisfied.
The notification must apply to the Real Estate Regulatory Authority, i.e., to the State of Goa RERA and Telangana RERA. It is mentioned at column (2) in the schedule chart, with respect to the assessment years mentioned below in column (4)
|S.No||Name of the Real Estate Regulatory Authority||PAN||Assessment Years|
|1.||Goa Real Estate Regulatory Authority||AAAGG3912L||2019-2020, 2020-2021, 2021-2022, 2022-2023, 2023-2024|
|2.||Telangana State Real Estate Regulatory Authority||AAAGT0709A||2019-2020, 2020-2021, 2021-2022, 2022-2023, 2023-2024|
This notification must be effective subject to the conditions that tax exemption in State RERA given by the Real Estate Regulatory Authority when not engage in any commercial activities. The nature of the specified income shall remain unchanged throughout the financial years. The specified income exempted includes the amount received as Grants-in-aid or loan or advance from Government, and also fee or penalty received. We at Corpbiz acknowledge our clients and helps in providing RERA registration.
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