The Central Government has granted income tax exemption to the Andhra Pradesh Pollution Control Board (APPCB) under Section 10(46) of the Income Tax Act, 1961. The Ministry of Finance, through a notification dated 18th July 2025, declared that APPCB will not be taxed on certain incomes related to its environmental functions. The Board, established under the Water (Prevention and Control of Pollution) Act, 1974, plays a key role in pollution control and environmental monitoring in Andhra Pradesh.
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Specified Incomes Covered Under Exemption
The CBDT notification lists several types of income that are now tax-free. These include consent fees under the Water and Air Acts, analysis and survey charges, reimbursements from the Central Pollution Control Board, and bio-medical waste authorization fees. Also exempted are government grants, fees collected under the Right to Information Act, non-commercial sale of law books, interest on staff loans, and miscellaneous income such as scrap sales and tender fees. Any interest earned from these sources will also enjoy tax exemption.
Conditions for Exemption and Assessment Years
The tax relief is subject to certain conditions. APPCB must not carry out any commercial activities. The nature of its income should remain the same every year. The Board must also file income tax returns as required under Section 139(4C)(g) of the Income Tax Act. Failure to meet these conditions may cancel the exemption.
The notification applies to assessment years 2022–23 to 2026–27, covering financial years 2021–22 to 2025–26. This provides both retrospective and future tax relief, helping the Board manage its funds more effectively.
Boost for Environmental Protection in Andhra Pradesh
This exemption will help APPCB strengthen its role in air and water quality monitoring, public health safety, and pollution control measures. The decision ensures that funds meant for environmental programs are not reduced by taxes. Recognizing APPCB as a non-commercial body supports its mission and boosts environmental governance in Andhra Pradesh. The move aligns with national efforts to promote sustainable development and effective use of public resources.
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