Income Tax Dept. Notifies Karnataka Electricity Regulatory Commission for Exemption u/s 10

The Ministry of Finance, the Department of Revenue, recently issued a notification dated June 16, 2025, stating the Central Government, in exercise of its powers conferred under sub-clause (b) of clause (46A) of section 10 of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as “the Income-tax Act”), has officially declared that the Karnataka Electricity Regulatory Commission, located in Bengaluru and having the Permanent Account Number (PAN) AAAGK0112L, will be exempted from payment of tax under the said clause. From now on, this commission will be referred to as “the assessee” in this notification. The mentioned clause permits certain authorities or entities to be exempt from paying income tax under certain conditions.

The Karnataka Electricity Regulatory Commission is a commission that was established under the Electricity Act, 2003 (Act No. 36 of 2003). As the commission fulfils the criteria set under the Income Tax Act, it qualifies for income tax exemption under clause (46A) of section 10.

This tax exemption will be made effective from the assessment year 2025-26. However, there is one important condition: the Commission must continue to operate as a statutory body under the Electricity Act, 2003, and must continue to carry out one or more of the specific purposes mentioned in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act.