Govt Grants FSSAI Major Tax Relief Under Income Tax Act

Govt Grants FSSAI Major Tax Relief Under Income Tax Act

The Ministry of Finance (Department of Revenue) released a notification (Notification No. 68/2025/F. No. 300195/12/2025-ITA-I) on 24th June, 2025, announcing its decision to exempt FSSAI from income tax under the sub clause (b) of clause (46A) of section 10 of the Income-tax Act, 1961 (43 of 1961), which allows certain organizational bodies to stand exempted from paying income tax but only under specific conditions.

As per the official notification, Food Safety and Standards Authority of India (FSSAI) with a registered PAN number AAAGF0023K, stands exempted from paying tax under the condition that it must:

• Continue to remain an authority formed under the Food Safety and Standards Act, 2006.
• Continue to keep working for at least one of the purposes listed in sub clause (a) of clause 46 (A) of section 10 of the Income Tax Act.

The said exemption will be enacted from the assessment year 2026-27.

The Clause 46 (A) of Section 10 of the Income Tax Act, 1961, grants tax exemptions to certain government authorities that are not engaged in any commercial activities, and are established for public purposes.

Refer to the official notification for more details: