Section 10(23BBE) Income Tax Exemption for IRDAI: Eligibility and Scope
Section 10(23BBE) of the Income-tax Act, 1961 provided an entity-specific income-tax exemption for the Insurance Regulatory and Development Authority established under the Insurance Regulatory and Development Authority Act, 1999. This article explains the eligible authority, scope of the exemption and the transition to the Income-tax Act, 2025.
Section 10(23BBE): exemption at a glance
| Legal provision | Section 10(23BBE), Income-tax Act, 1961 |
|---|---|
| Eligible assessee | The Insurance Regulatory and Development Authority established under section 3(1) of the Insurance Regulatory and Development Authority Act, 1999 (commonly called IRDAI). |
| Nature of income | Any income of that Authority. |
| Extent of exemption | The entire qualifying income of the specified Authority under the relevant provision. |
| Principal condition | The income must belong to the statutory Authority identified by the provision, not to another person merely associated with insurance regulation. |
Meaning of the statutory Authority
Section 3(1) of the Insurance Regulatory and Development Authority Act, 1999 provides for establishment of the Insurance Regulatory and Development Authority. The Authority is known as the Insurance Regulatory and Development Authority of India (IRDAI). It is India's statutory insurance regulator, with functions concerning regulation, promotion and orderly development of the insurance sector.
The legal reference to section 3(1) is important: eligibility arises from the identity of the statutory body, rather than from the type of activity undertaken by a private taxpayer.
Which income is exempt?
Under the wording of section 10(23BBE) of the 1961 Act, any income of the specified Authority is covered. Unlike some exemptions that apply only to named categories such as interest or dividends, this provision identifies the exempt person and refers broadly to its income. The benefit cannot be transferred to insurance companies, brokers, agents, policyholders or contractors.
Conditions and practical interpretation
- Statutory identity: The recipient must be the Authority established under section 3(1) of the 1999 Act.
- Ownership of income: The income must be that of the Authority itself.
- Correct tax year: Determine the governing income-tax statute for the relevant tax year before citing an exemption.
- Record keeping: The statutory basis and relevant accounting records should support the treatment adopted.
Position under the Income-tax Act, 2025
The Income-tax Act, 2025 took effect on 1 April 2026, replacing the Income-tax Act, 1961 for the tax years governed by the new law. Section 10(23BBE) is the historical citation under the 1961 Act. For a tax year governed by the 2025 Act, consult the current enacted provisions and applicable transition rules rather than assuming the former section number or its wording applies unchanged.
The official sources below should be used to verify the relevant statute, amendments and any applicable notifications.
Official legal references
- India Code - central legislation, including the Insurance Regulatory and Development Authority Act, 1999
- Income Tax Department - income-tax legislation
- Income Tax e-Filing Portal - current tax guidance and services
- IRDAI - official insurance regulator website
Frequently asked questions
Who is eligible under Section 10(23BBE)?
The Insurance Regulatory and Development Authority established under section 3(1) of the Insurance Regulatory and Development Authority Act, 1999, now known as IRDAI.
What income is covered by the exemption?
Under the Income-tax Act, 1961, any income of the specified statutory Authority is exempt, subject to the law applicable to the relevant year.
Does this exemption cover private insurance companies?
No. The exemption is entity-specific and does not extend automatically to insurers, intermediaries or other regulated businesses.
Does Section 10(23BBE) apply after April 2026?
The Income-tax Act, 2025 applies from 1 April 2026. For later tax years, check the corresponding provisions of that Act rather than assuming the old section numbering continues.
This article provides general information. Applicability depends on the statute and tax year concerned.