CBDT Grants Tax Exemption to Telangana State Pollution Control Board Under Section 10(46)



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The Central Board of Direct Taxes (CBDT) has granted the Telangana State Pollution Control Board (TSPCB) an exemption from income tax under Section 10(46) of the Income-tax Act, 1961. This exemption covers various income sources, including consent fees, analysis fees, government grants, and penalties. The exemption is effective retrospectively from FY 2021-22 up to FY 2025-26, provided the TSPCB adheres to specific conditions like avoiding commercial activities.

The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has notified the Telangana State Pollution Control Board (TSPCB) as a tax-exempt entity under clause (46) of section 10 of the Income-tax Act, 1961. The notification, issued via S.O. 2122(E) dated May 13, 2025, exempts specified categories of income earned by the Board from income tax for multiple financial years. The TSPCB (PAN: AAAGT0080Q), constituted under the Water (Prevention and Control of Pollution) Act, 1974 by th
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FAQ :

The Central Board of Direct Taxes (CBDT) granted the tax exemption.

The TSPCB has been granted exemption under clause (46) of section 10 of the Income-tax Act, 1961.

The exemption covers income such as consent fees, analysis fees, reimbursements from the Central Pollution Control Board, authorisation and cess appeal fees, government grants, RTI fees, miscellaneous income, and penalties for environmental non-compliance.

The exemption applies retrospectively from FY 2021-22 to FY 2024-25 and prospectively for FY 2025-26.

The TSPCB must avoid engaging in any commercial activity, ensure its activities and income nature remain unchanged, and file income tax returns as required.




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