The Central Board of Direct Taxes (CBDT) has notified the income tax exemption under section 10(46) of the Income Tax Act, 1961 exempting the income of Haryana Electricity Regulatory Commission from the income tax net.
Haryana Electricity Regulatory Commission was established on 17th August 1998 as an independent statutory body corporate as per the provision of the Haryana Electricity Reform Act, 1997. Haryana was the second State in India to initiate the process of Reform & Restructuring of the Power sector.
As per the notification, “the Central Government hereby notifies for the purposes of the said clause, ‘Haryana Electricity Regulatory Commission’ (PAN AAAGH0072G), a Commission constituted under the Haryana Electricity Reform Act, 1997 (Haryana Act No.10 of 1998), in respect of the following specified income arising to that Commission, namely: (a) Fees received under the Electricity Act, 2003 (36 of 2003) and (b) Interest earned on government grants and loans and fees received under the Electricity Act, 2003 (36 of 2003).”
“This notification shall be effective subject to the conditions that Haryana Electricity Regulatory Commission: – (a) shall not engage in any commercial activity; (b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and (c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961,” the notification said.
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