<h1>Gujarat's Proposal to Modify Tax Exemptions for Urban Development Authorities Rejected in 2016 Budget.</h1> Urban Development Authorities (UDAs) can claim tax exemptions under the Income-tax Act, 1961, if they fulfill certain conditions, such as engaging in charitable activities without exceeding a specific income threshold from commercial activities. Exemptions under sections 11 and 10(46) are available for UDAs that meet these criteria. The Government of Gujarat requested modifications to these tax laws for UDAs, but the proposal was rejected during the 2016 budgetary exercise. The government aims to eliminate exemptions and deductions in favor of a moderate tax regime, as stated by the Minister of State in the Ministry of Finance in a Lok Sabha reply.