CBDT Exempts Petroleum and Natural Gas Regulatory Board from Income Tax under Section 10(46A) [Read Notification]

The Central Board of Direct Taxes ( CBDT ), through Notification No. 118/2024 dated November 12, 2024, has granted the Petroleum and Natural Gas Regulatory Board ( PNGRB ) an income tax exemption under Section 10(46A) of the Income Tax Act, 1961.

This exemption applies from the assessment year 2024-25 onwards, provided the board continues its functions under the Petroleum and Natural Gas Regulatory Board Act, 2006.

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Section 10 of Clause 46 sub-clause (a) of the Income Tax Act, 1961

“10. Incomes not included in total income.

In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included

(46) any specified income arising to a body or authority or Board or Trust or Commission (by whatever name called) , or a class thereof which—

(a) has been established or constituted by or under a Central, State or Provincial Act, or constituted by the Central Government or a State Government, with the object of regulating or administering any activity for the benefit of the general public;”

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Section 10(46A) of the Income Tax Act allows certain organizations to benefit from tax exemptions if they meet specific conditions.

To qualify, the organization must be established by the government or through legislation. They primarily serve or regulate activities that benefit the public. The Petroleum and Natural Gas Regulatory Board (PNGRB) meets these conditions as the Central Government constituted it to oversee fair practices, safety, and compliance in the energy sector, directly impacting public access to essential natural resources.

This notification was issued by Vikas Singh, Director (ITA-I) at the Central Board of Direct Taxes (CBDT).

To Read the full text of the Order CLICK HERE

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