Pune Metropolitan Region Development Authority (PMRDA) has recently received a significant financial boost as it has been granted an exemption from income tax. This exemption has resulted in savings of approximately Rs 1,000-1,100 crore for PMRDA, which can now be utilized for local development initiatives.
PMRDA, established on March 31, 2015, operates with limited sources of income and does not receive any subsidies from the government. The authority primarily relies on revenue generated from building permits and land in the metropolitan area to fund its infrastructure development projects. The main objective of PMRDA is to enhance the infrastructure facilities for the residents of the metropolitan region. In light of this, PMRDA submitted an application to the Central Board of Direct Taxes in 2017, seeking exemption from income tax payments.
Previously, PMRDA had been required to pay approximately Rs 250-275 crore in income tax annually. However, during this period, a legal dispute regarding income tax recovery was raised and brought before the High Court.
Under the guidance of Pune Metropolitan Commissioner Rahul Mahiwal, along with the dedicated efforts of Prathamesh Borkar, Chief Accounts and Finance Officer of the Accounts and Finance Department at PMRDA, and the assistance of the firm Borkar & Borkar, the necessary documentation was diligently completed and submitted to the Central Board of Direct Taxes.
Ramdas Jagtap, Deputy Collector and Public Relations Officer at PMRDA, shared the positive news, stating, “For the first time in five years, the authority has been granted an exemption. The funds saved, amounting to approximately Rs 1,000-1,100 crore, can now be allocated to local development projects.” This exemption marks a significant milestone for PMRDA and will facilitate further progress in enhancing the infrastructure and well-being of the metropolitan region.