CBDT Notifies Tax Exemption for Dadra and Nagar Haveli Building and other Construction Workers Welfare Board
The Central Board of Direct Taxes (CBDT) under the Ministry of Finance recently shared a notification (No. 12/2026) on January 21, 2026, regarding income tax exemption.
The Central Government, using its power given by clause (46) of section 10 of the Income-tax Act, 1961, notifies “Dadra and Nagar Haveli Building and Other Construction Workers Welfare Board” (PAN: AAALT2225N) for tax exemption. It is a board established by the UT Administration of Dadra and Nagar Haveli. The tax exemption is granted for the following specified income:
- Cess collected under the Building and Other Construction Workers’ Welfare Cess Act, 1996 (28)
- Registration fees under the Buildings and Other Construction Workers’ (Regulation of Employment and Conditions of Service) Act, 1996 (27 of 1996) and
- Interest earned on bank deposits
This benefit will only be made effective if the “Dadra and Nagar Haveli Building and Other Construction Workers Welfare Board”:
- Will not involve in any commercial activity
- Activities and the nature of the specified income will remain unchanged throughout the financial years.
- Will file return of income as per clause (g) of subsection (4C) of section 139 of the Income-tax Act, 1961.
If the board fails to comply with these rules, the tax authorities may take action against the board under the Income Tax Act, 1961, and the board may lose the tax benefits the agency was given under section 10(46).
This notification is considered effective for the financial years 2018-19 to 2022-23, and it will also apply to the assessment years 2019-2020 to 2023-2024.
