North India Statesman
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New Delhi: Recent news which indicated that Noida has been ‘tax-free’, they are not completely accurate. In fact, the Central Government has exempted income tax to the employed city around New Delhi, Noida (New Okhla Industrial Development Authority), but this discount is not for the city, not for the city, but on the NEW Okhla Industrial Development Authority and it is applied only on the non-developed non-developed income. This important declaration, which is effective from the assessment year of 2024-25, can give a new shape to India’s urban development strategies. What is tax-free means? The Central Board of Direct Taxes (CBDT) has given the Noida Authority from income tax under Section 10 (46A) of the Income Tax Act, under a historic decision. This simply means that the Noida Authority will no longer pay taxes on income that arise from its non-commercial public functions. These include mainly: However, it is important to note that this discount is not a full ‘tax-free’ situation. Any commercial activity made by Noida Authority, such as the sale of real estate, interest earned on investment, or other benefits-income from other benefits-oriented enterprises will be fully taxed. Leakage can be stopped. What are the conditions? This tax exemption is not a free pass. The Noida Authority will have to maintain different accounts clearly, which consists of a clear division of tax-free income and taxable income. If an overlap or abuse is found, the entire discount can be canceled. This initiative is part of the government approach to make the urban scheme more tax-efficient, and it can also serve as a model for other development authorities in the future.
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