CBDT Notifies Tax Exemption to ‘Haryana Electricity Regulatory Commission’ [Read Notification]

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The Central Board of Direct Taxes ( CBDT ) notified income tax exemption to ‘Haryana Electricity Regulatory Commission’ under section 10(46) of the Income Tax Act, 1961.

Haryana Electricity Regulatory Commission is an independent statutory body corporate as per the provision of the Haryana Electricity Reform Act, 1997 established in the year 1998.

The main objects of the Commission are to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto.

As per section 10(46) of the Income Tax Act, exemption can be provided to income earned by a notified body, authority, board, trust or commission which is set up or constituted by a Central State or Provincial Act or constituted by the Central Government or State Government with the object of regulating or administering an activity for the benefit of the general public.

As per the present notification, the receipts by the HERC by way of grants and loans made by the Government of Haryana, fees received under the Electricity Act, 2003 (36 of 2003) and interest earned on government grants and loans and fees received under the Electricity Act, 2003 (36 of 2003) are exempted from income tax subject to conditions specified in the Act.

Read the full text of the Notification below.

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