Finance Ministry Exempts UIDAI from Income Tax for Five Years

The finance ministry has exempted the Unique Identification Authority of India's income from income tax for the next five years until fiscal 2027-28. This includes grants, fees, and interest earned. The exemption was announced via a notification by the Central Board of Direct Taxes under the Ministry of Finance and is applicable subject to specific conditions.

The finance ministry has exempted the income of the Unique Identification Authority of India (UIDAI) from income tax payments for five years, extending until fiscal 2027-28.

According to the notification issued by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance, grants and subsidies from the central government, fees, subscriptions, and income from term and bank deposits will not be taxed. This exemption applies to assessment years 2024-2025 through 2028-2029.

UIDAI, established under the Aadhaar Act 2016, must comply with conditions such as not engaging in commercial activities and maintaining the nature of its specified income to benefit from this exemption.

(With inputs from agencies.)