Notification No. 125 /2021 [F. No. 300196/35/2018-ITA-I] / S.O. 4523(E)

Last updated: 17 November 2021

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The Central Board of Direct Taxes has issued Notification No. 125/2021, granting income tax exemption to the Chandigarh Pollution Control Committee. This exemption covers various income sources, including grants, fees, penalties, and interest earned on these amounts. The notification is effective from June 1, 2020, to March 31, 2025, provided the committee adheres to specific conditions. These conditions include refraining from commercial activities and maintaining the nature of its specified income.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
New Delhi, the 29th October, 2021

Notification No. 125/2021-Income Tax

S.O. 4523(E). - In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Chandigarh Pollution Control Committee’ (PAN AAATC6094L), a body constituted under Section 4, clause (4) of the Water (Prevention and Control of Pollution) Act, 1974 (Act No.6 of 1974) and Section 6 of the Air (Prevention and Control of Pollution) Act, 1981 (Act No.14 of 1981), in respect of the following specified income arising to that body, namely:-

(a) Grant-in-aid from CPCB New Delhi;

(b) Grant-in-aid received from the Union Territory of Chandigarh Administration;

(d) Environment Compensation and penalties;

(e) Bio medical waste authorization fees;

(f) Bank guarantee forfeiture;

(g) Reimbursement of NAMP Project Expenses (CPCB);

(h) Stack, Analysis, Water & air testing fees;

(i) Water cess receipts;

(j) Interest income earned on (a) to (i) above.

2. This notification shall be effective subject to the conditions that Chandigarh Pollution Control Committee,-

(a) shall not engage in any commercial activity;

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

3. This notification shall be deemed to have been applied for the period from 01-06-2020 to 31-03-2021 in the financial year 2020-2021 and shall apply for the financial years 2021-2022, 2022-2023, 20232024 and 2024-2025.

[Notification No. 125 /2021/F. No. 300196/35/2018-ITA-I]

SOURABH JAIN, Under Secy.

Explanatory Memorandum

It is certified that no person is being adversely affected by giving retrospective effect to this notification.

FAQ :

The notification grants income tax exemption to the Chandigarh Pollution Control Committee for specified income sources under Section 10(46) of the Income-tax Act, 1961.

The exemption covers grant-in-aid from CPCB and Chandigarh Administration, consent fees, environment compensation and penalties, bio-medical waste authorization fees, bank guarantee forfeiture, reimbursement of NAMP Project Expenses, testing fees, water cess receipts, and interest earned on these incomes.

The committee must not engage in any commercial activity, its activities and income nature must remain unchanged, and it must file its income tax return as per Section 139(4C)(g).

The notification is deemed effective from June 1, 2020, to March 31, 2021, and applies to the financial years 2021-2022, 2022-2023, 2023-2024, and 2024-2025.

This notification was issued by the Ministry of Finance (Department of Revenue) through the Central Board of Direct Taxes.

Notification No : 125/2021-Income Tax
Source : https://incometaxindia.gov.in/communications/notification/notification-125-2021.pdf

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