Centre Notifies Income Tax Exemption for Uttarakhand Pollution Control Board from AY 2025-26 Onwards [Read Notification]

The Central Board of Direct Taxes (CBDT), functioning under the Ministry of Finance has notified income tax exemption for the Uttarakhand Pollution Control Board.

The exemption, applicable from the assessment year 2025–26 has been granted under sub-clause (b) of clause (46A) of Section 10 of the Income-tax Act, 1961 and was affirmed through Notification [No. 130/2025] issued on August 7, 2025

Constituted under the Air (Prevention & Control of Pollution) Act, 1981 and the Water (Prevention & Control of Pollution) Act, 1974, the Uttarakhand Pollution Control Board serves as the state’s statutory authority for implementing and enforcing environmental laws and policies related to air and water pollution.

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Headquartered in Dehradun, the Board monitors air and water quality, grants consents and authorisations to industries and establishments, undertakes laboratory analysis, environmental surveys and also advises the state government on matters pertaining to pollution prevention and control measures.

The notification however does mention that the income tax exemption is conditional upon the Board continuing to operate as a board constituted under the (i) The Air (Prevention & Control of Pollution) Act, 1981 (Act No.14 of 1981) and (ii) Water (Prevention & Control of Pollution) Act, 1974 (Act No.6 of 1974).

The Board is also required to pursue one or more of the purposes specified in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act, pertaining to regulatory, monitoring and advisory functions in line with statutory mandates.

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The intent behind exempting the Board’s incomes from taxation is to enable it to retain more financial resources to aid pollution control and environmental protection activities.

The explanatory memorandum to the notification certifies that its retrospective application will not adversely affect any person.

With the exemption in place from AY 2025–26 onwards, the Uttarakhand Pollution Control Board is expected to reinforce its functions of monitoring pollution levels, enforcing compliance amongst industries and promoting cleaner industrial production practices across Uttarakhand.

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This exemption for the Uttarakhand Pollution Control Board comes amidst similar recent notifications issued by the CBDT granting conditional income tax relief to other statutory and public bodies such as the Haryana State Pollution Control Board, All India Council for Technical Education and the West Bengal Municipal Development Fund Trust.