Noida News: NOIDA Goes Tax-Free ! New Era for Business & Growth, Here's What Citizens And Corporates Need To Know

A milestone achievement was marked in a significant way with the introduction of tax exemption to NOIDA under Section 10(46A) of the Income Tax Act, effective for the Assessment Year 2024-25, as granted by the Central Board of Direct Taxes. This historic move, as reported throughout Noida News, holds a brighter future for the city, albeit at a price.

What's Covered Under This "Tax-Free" Tag?

The non-commercial income of NOIDA is now exempt from income tax. 

These are what qualify:

Government grants & subsidies

• Fees for civic services (such as water, sanitation, and so on)

• This will be an income that can be directly utilized to enhance the city infrastructure without having to pay tax on it.

What's Not Covered?

Commercial revenue is not exempt. That includes:

• Real Estate project revenue

• Investment interest

• Profits of any company or trade investment

• Such income is characterised as taxable even under the Income Tax Act.

Noida News Fine Print: Conditions You Must Know

According to CBDT Circular No. 116/2025, NOIDA has to:

• Have different books of accounts for exempt and non-exempt income.

• Make full use of the funds' transparency.

• Commercial activity should not overlap with exempt accounts.

What does this mean for NOIDA Residents?

• Improved road network, water, housing, and drainage systems

• Increased funding for civic infrastructure

• More reinvestment of the public funds in development

What does it mean for Businesses in NOIDA?

Even private businesses will not receive direct relief in taxes, but can anticipate:

• Rapid approval of new industrial and construction development projects

• Improved infrastructure and utilities infrastructure

• Ease of doing business as the government structure becomes smoother

• This will render NOIDA an appealing place to potential investors and start-ups.