Income Tax Exemption Granted to Forum of Regulators: Read CBDT Notification

The Ministry of Finance, the Department of Revenue (Central Board of Direct Taxes), recently issued an official notification dated June 19, 2025, stating the Central Government of India, in exercise of its powers offered under clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), has officially announced that the ‘Forum of Regulators,’ which has the Permanent Account Number (PAN) AAAJF0126G, will now 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 designated clause allows certain authorities or entities to be exempt from paying income tax under certain conditions.

The Forum of Regulators is a commission that was established by the Government of India, Ministry of Power, in exercise of the powers offered under sub-section (2) of section 166 of the Electricity Act, 2003 (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. The following types of income received by this authority will not be taxed:

• (a) Grants (funds) received from the government.
• (b) Membership fees collected from Central and State Electricity Regulatory Commissions.
• (c) Interest earned from bank deposits.

This tax exemption will be made effective from the financial years 2011-2012 to 2015-2016, relevant to assessment years 2012-2013 to 2016-2017. However, the notification will be effective subject to the following conditions:

• The commission must engage in any commercial activity.
• The activities and the nature of the specified income shall remain unchanged throughout the financial years; and
• The commission shall file a return of income in accordance with the provisions of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

Refer to the official notification for more related information.