CBDT Grants Tax Exemption to Delhi Pollution Control Committee

The Central Board of Direct Taxes (CBDT), through Notification No. 86/2026 dated 16 July 2026, has notified the Delhi Pollution Control Committee (DPCC) for income-tax exemption under Section 10(46) of the Income-tax Act, 1961. The exemption covers government grants and subsidies, statutory consent, licence and application fees, environmental penalties and fines, and interest earned on bank deposits or investments of surplus funds.

The exemption applies retrospectively for Assessment Years 2024–25, 2025–26 and 2026–27. DPCC must not undertake commercial activities, must maintain the same nature of activities and specified income, and must file its income-tax return as prescribed. Non-compliance may result in penal action and withdrawal of the exemption. CA Sansaar