The Ministry of Finance has issued a fresh notification granting income tax exemption to the Andhra Pradesh Pollution Control Board (APPCB) under clause (46) of Section 10 of the Income Tax Act, 1961. This move exempts a range of income sources received by the Board, reinforcing its non-commercial and statutory nature.
According to Notification No. S.O. 3289(E) issued by the Central Board of Direct Taxes (CBDT) on July 18, 2025, the exemption applies retrospectively from Assessment Year 2022-2023 to AY 2025-2026, and will also cover AY 2026-2027, thereby spanning financial years 2021-22 to 2025-26.
Specified Incomes Exempted
The tax exemption covers several non-commercial income streams, including:
- Consent fees under the Water and Air (Prevention and Control of Pollution) Acts
- Analysis, air quality, and noise level survey fees
- Reimbursements from the Central Pollution Control Board (CPCB) under national monitoring programs
- Bio-medical authorization fees
- Cess reimbursements and related appeal fees
- Government grants (Central/State)
- RTI application fees
- Sale of non-commercial legal books
- Interest on staff loans and advances
- Miscellaneous receipts like tender fees and sale of old scrap
- Interest income derived from these sources
Conditions for Exemption
The notification stipulates that the APPCB must:
- Not engage in any commercial activity
- Maintain the same nature of income and operations throughout the notified period
- File income tax returns in accordance with Section 139(4C)(g) of the Income Tax Act
The exemption is in line with the government's policy to support regulatory and public welfare institutions by relieving them from tax burdens on non-profit activities.
This development brings clarity and fiscal support to the Andhra Pradesh Pollution Control Board as it continues its vital work in safeguarding the environment in the state.
Official copy of the notification has been attached
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