CBDT Notification: Income Tax Exemption for Tamil Nadu Electricity Regulatory Commission

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance shares a notification in powers given by Section 10 (clause 10) of the Income Tax Act, 1961. the Central Government notifies the Tamil Nadu Electricity Regulatory Commission (TNERC), a body established by the Government of Tamil Nadu for the purpose of income exempted from taxation for the commission and sets the below-mentioned conditions for availing such exemptions:

1 (a) Amount received in the form if Government Grants, certain fees and penalties.

(b) Fees levied under clause (g) of sub-section (1) of section 86 read with Section 181 of the Electricity Act, 2003

(c) Penalties levied under section 146 of the Electricity Act, 2003

(d) Interest earned on bank deposits

2. This notification will be effective subject to the conditions that the Tamil Nadu Electricity Regulatory Commission-

(a) Will not engage in any commercial activity

(b) Activities and the nature of the specified income will remain unchanged throughout the financial years and

(c) Will file a 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 will be deemed to have been applied for the financial year 2022-2023 relevant to assessment year 2023-2024.