CBDT Grants Tax Exemption to Delhi Pollution Control Committee

The Central Board of Direct Taxes (CBDT), through Notification No. 87/2026 dated 16 July 2026, has notified the Delhi Pollution Control Committee (DPCC), PAN: AADAD2584N, for income-tax exemption under Schedule III [Table: Serial No. 36], read with Section 11 of the Income-tax Act, 2025.

The exemption applies to the following specified income received by DPCC:

• Government grants and subsidies
• Consent, licence and application fees collected under statutory authority
• Penalties and fines imposed under environmental laws
• Interest earned on bank deposits and investments of surplus funds

The exemption is subject to DPCC not undertaking any commercial activity, filing its income-tax return in accordance with Section 263(9)(c)(xiii), and ensuring that its activities and the nature of specified income remain unchanged throughout the relevant financial years.

Failure to comply with these conditions may result in withdrawal of the exemption and initiation of proceedings under the Income-tax Act, 2025.

The notification will apply for Tax Years 2026–27 and 2027–28. 

Notification Number: 87/2026
S.O. Number: S.O. 3920(E)
Date: 16 July 2026

View Attachment