The Finance Ministry has exempted the income of the Unique Identification Authority of India (UIDAI) from payment of income tax for five years till FY 2027-28.
Accordingly, grants/subsidies received from the central government; fees/subscriptions including RTI fees, tender fees, sale of scrap, PVC cards; authentication, enrolment and update service charges; fixed/term deposits; and interest on bank deposits earned by the UIDAI will be exempt from income tax.
There will be no tax for five years
A notification to this effect was issued by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance. It said that this notification will be applicable for the assessment years 2024-2025, 2025-2026, 2026-2027, 2027-2028 and 2028-2029.
What is UIDAI?
UIDAI is a statutory authority established under the provisions of the Aadhaar Act, 2016 to ensure compliance with the Aadhaar Act and to make rules and regulations consistent with the Act.
This notification will be effective subject to the condition that UIDAI will not engage in any commercial activity; the nature of activities and specified income will remain unchanged throughout the financial year.
