Prayagraj Mela Pradhikaran, the organiser of recently concluded Mahakhumb, will get exemption from Income Tax, Central Board of Direct Taxes (CBDT) has notified.
The Mahakhumb at Prayagraj (Uttar Pradesh) took place between January 13 and February 26. The State Government claimed that over 66 crore people visited the Mahakhumb, and thus will have positive impact on the economy of the State as well as the nation.
As of now, the earnings of Prayagraj Mela Pradhikaran are not clear, but it is likely that the authority got revenue through leasing of lands and registration of various commercial activities besides other things.
“In exercise of the powers conferred by sub-clause (b) of clause (46A) of section 10 of the Income-tax Act, 1961, the Central Government hereby notifies the Prayagraj Mela Pradhikaran, Prayagraj, an authority constituted under the Uttar Pradesh Prayagraj Mela Authority, Allahabad Act, 2017, for the purposes of the said clause,” the notification said.
This notification will be effective from the Assessment Year 2024-25 (Fiscal Year 2023-24), subject to the condition that the assessee continues to be an authority constituted under the Uttar Pradesh Prayagraj Mela Authority, Allahabad Act, 2017 with one or more of the purposes specified in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act, the notification explained.
Clause (46A) of section 10 of the Income-tax Act, 1961 prescribes two conditions for tax exemption. First condition is for a non-company public entity which has been established or constituted by or under a Central Act or State Act and dealing with and satisfying the need for housing accommodation and /or planning, development or improvement of cities, towns and villages. The second condition is an entity if notified by the Central Government in the Official Gazette for exemption.
The Uttar Pradesh government has said that the Mahakumbh drove a business turnover of ₹3 lakh crore. Additionally, the state anticipates earning ₹55,000 crore in revenue from the event. The festival created direct and indirect employment opportunities for millions.
Estimates suggest that around 66 crore devotees attended the Mahakumbh 2025, making it one of the largest religious gatherings in history. The scale of economic activity was so vast that 16 banks set up branches within the premises, processing transactions worth ₹37 crore.
To ensure the smooth execution of the event, the Uttar Pradesh government allocated ₹7,000 crore, while the central government invested ₹15,000 crore in Prayagraj. This extensive funding covered infrastructure, logistics, and facilities, contributing to Mahakumbh’s seamless organisation.
The impact of Mahakumb has already been reflected in GST collection which rose to an 11-month high of around ₹10,000 crore in March. Collections in March boosted the average mop up in January-March quarter. Average monthly collections were ₹8,400 crore and ₹9,000 crore in July-September quarter (Q2 of FY25) and October-December quarter (Q3 of FY25) which surged to over ₹9,500 crore in January-March quarter (Q4 of FY25) showing a double digits growth of around 12.5 per cent on an average during last three months of FY25.
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Published on April 8, 2025
