CBDT Grants Tax Exemption to Mussoorie Dehradun Development Authority Income

CBDT has issued Notification No. 73/2026, dated 2 July 2026, notifying tax exemption under section 10(46) of the Income-tax Act, 1961 for specified income of the Mussoorie Dehradun Development Authority, an authority constituted by the Government of Uttarakhand.

The exemption applies to income received from grants, loans and advances from the Government of Uttarakhand, fees or charges levied under the Uttarakhand Urban and Country Planning and Development Act, 1973, income from disposal of land, buildings and other movable or immovable properties, lease or rent income, and interest on bank deposits.

The notification will remain effective subject to certain conditions. The authority must not engage in any commercial activity, its activities and nature of specified income must remain unchanged during the relevant financial years, and it must file its income tax return as required under the Income-tax Act. Failure to comply may lead to penal action and withdrawal of exemption.

The benefit will be deemed applicable for assessment years 2022-23 and 2023-24, relevant to financial years 2021-22 and 2022-23. CA Sansaar

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