The Government of India has provided income tax relief to the Karnataka State Pollution Control Board (KSPCB) by allowing the exemption of certain categories of income from income tax.
Janvi | Jul 3, 2025 |
Income Tax Relief Granted to Karnataka State Pollution Control Board on Specified Incomes
The Government of India has provided income tax relief to the Karnataka State Pollution Control Board (KSPCB) by allowing the exemption of certain categories of income from income tax. As per Notification No. 71/2025, released by the Ministry of Finance, Department of Revenue, on 2 July 2025, the tax relief is given under the powers granted by Clause (46) of Section 10 of the Income-tax Act, 1961.
KSPCB, created by the Karnataka State Government under the Water (Prevention and Control of Pollution) Act, 1974, manages and monitors environmental standards within the state. To support its non-commercial regulatory functions, the government has notified several sources of income that will now be exempt from income tax.
The specified incomes include consent fees collected from industries under the Water and Air Pollution Control Acts, water and air analysis charges, and environmental compensation fees. Additionally, any income or fees tied to environmental protection will be communicated by the State Government or the Central Pollution Control Board (CPCB) and will also be included. Moreover, the exemption extends to grants, subsidies, financial aid, and reimbursements received from the Central Government, State Government, CPCB, or other government agencies for related activities. Miscellaneous income from the Old Fund and other specific funds, personal interest income, proceeds from the sale of scrap, tender application fees, RTI-related fees, and liquidated damages are also exempted.
However, the exemption comes with a few conditions. The Board isn’t allowed to engage in any commercial activities, and the types of exempt income must remain consistent across the relevant financial years. Additionally, KSPCB must file its income tax return as per Section 139(4C)(g) of the Income-tax Act.
The notification has both retrospective and prospective applicability. It shall be deemed to have been applied for the Assessment Years 2024–25 and 2025–26, covering the Financial Years 2023–24 and 2024–25. Looking ahead, this exemption will be in effect for the Assessment Years 2026–27 through 2028–29, which correspond to the Financial Years 2025–26 to 2027–28.
Refer to the official notification for more details
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