NOIDA gets tax-free status: What it means for residents, real estate and investors

1.Tax-free boost begins from AY 2024‑25 under Section 10(46A)

CBDT has excluded NOIDA's non-commercial income like rents, government grants, and service fees from tax. The move takes effect from Assessment Year 2024–25 and is historic for urban development.

 

2.Which income qualifies and which doesn’t?

Only non-commercial income gets exclusion like rent on public property, government grants, and public service fees. Commercial revenue from real estate sales or interest remains fully taxable.

 

3.Transparent accounting is a must

NOIDA must maintain separate books for exempt vs taxable income per CBDT Notification No. 116/2025. Any mix-up or misuse could trigger withdrawal of the entire tax break.

 

4.Residents can expect better infrastructure funding

Tax saving will help NOIDA to spend more money for the betterment of roads, clean water, drainage improvement and other civic services, without putting extra cost in residents. 

 

5.Businesses gain

This exemption doesn’t impact private business taxes. It’s an initiative for NOIDA's  quicker administrative approvals, utilities and for strong investor growth.