Income Tax Exemption for West Bengal Municipal Development Fund Trust · 129/2025
CBDT notification 129/2025 · 01 Aug 2025
Official title
notification no. 129/2025 f. no. 300196/44/2024 ita i / s.o. 3559 e
Official record
Open source pageSummary
Check the official recordWhat changed
The Central Government notifies the West Bengal Municipal Development Fund Trust for income tax exemption under section 10(46) of the Income-tax Act, 1961. This exemption applies to income from bank deposit interest, term loan interest to urban local bodies, and upfront processing fees. The Trust must not engage in commercial activity. The Trust must maintain the nature of its activities and specified income. The Trust must file a return of income under section 139(4C)(g). This notification applies to the financial years 2021-2022, 2022-23, 2023-24, 2024-25, and 2025-26.
What you must do
- The Trust must file a return of income.
Key dates
- Effective from
- 01 Apr 2021
- Commencement of retrospective application
- 01 Apr 2021
Document text
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 1st August, 2025
(Income-tax)
S.O. 3559(E).— In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘West Bengal Municipal Development Fund Trust’ (PAN: AAATW1661P), a Trust constituted by the State Government of West Bengal, in respect of the following specified income arising to that Trust, namely:-
- (a) Interest from Bank deposits,
- (b) Interest on Term loan to Urban Local Bodies,
- (c) Upfront processing fees.
- This notification shall be effective subject to the conditions that West Bengal Municipal Development Fund Trust -
- (a) shall not engage in any commercial activity;
- (b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and
- (c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
- This notification shall be deemed to have been applied for financial years 2021-2022, 2022-23, 2023-24, 2024-25 and shall also apply with respect to financial year 2025-26.
[Notification No. 129/2025/F. No. 300196/44/2024-ITA-I]
MEENAKSHI SINGH, Dy. Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect to this notification.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
Source details
- Source
- Central Board of Direct Taxes / Income Tax Department
- Type
- notification
- Published by source
- 01 Aug 2025
- Document number
- 129/2025
- Issuing division
- Central Board of Direct Taxes
- Effective date
- 01 Apr 2021
- Coverage area
- direct-tax