CBDT notifies Income Tax Exemption for AP Pollution Control Board on Select Revenue Streams [Read Notification]
CBDT, via Notification, grants income tax exemption on specified incomes to the Andhra Pradesh Pollution Control Board.
![CBDT notifies Income Tax Exemption for AP Pollution Control Board on Select Revenue Streams [Read Notification]](https://images.taxscan.in/h-upload/2025/07/19/2065667-cbdt-income-tax-exemption-tax-exemption-taxscan.webp "CBDT notifies Income Tax Exemption for AP Pollution Control Board on Select Revenue Streams [Read Notification]")
The Ministry of Finance (Department of Revenue) issued Notification No. 119/2025 dated July 18, 2025, through the Central Board of Direct Taxes (CBDT), granting income tax exemption on certain types of income earned by the Andhra Pradesh Pollution Control Board (APPCB). This exemption is issued under Section 10(46) of the Income-tax Act, 1961.
The Andhra Pradesh Pollution Control Board, established under the Water (Prevention and Control of Pollution) Act, 1974, is a government body responsible for enforcing environmental laws in the state. The notification recognizes the non-commercial nature of the Board’s functions and exempts specific income earned by it from income tax.
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Income Exempted from Tax
As per the notification, the following types of income received by the Board will not be taxable:
- Consent fees collected under the Water and Air Pollution Acts
- Analysis and survey fees, including air quality and noise level surveys
- Reimbursements from the Central Pollution Control Board for national water and air quality monitoring programs
- Bio-medical waste authorization fees
- Cess reimbursements and appeal fees
- Grants received from the Central or State Government
- RTI application fees under the Right to Information Act
- Income from non-commercial sale of legal publications
- Interest on loans and advances to staff
- Miscellaneous income like sale of scrap or tender fees
- Interest earned on these exempted incomes
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Conditions for Exemption
To continue receiving this exemption, the Board must:
- Not engage in any commercial activity
- Keep the nature of activities and income unchanged
- File income tax returns as required under Section 139(4C)(g) of the Income-tax Act
Applicability
The exemption applies retrospectively for the following assessment years:
- 2022–2023 to 2026–2027, covering financial years 2021–2022 to 2025–2026
The notification also includes an explanatory note, assuring that no person is adversely affected by this retrospective benefit.
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