CBDT Notifies Delhi Pollution Control Committee for Section 11 Exemption Under Income-tax Act, 2025 vide Notification No. 87/2026-Income Tax dated 16 July 2026
The Central Board of Direct Taxes (CBDT), through Notification No. 87/2026-Income Tax dated 16 July 2026, notified the Delhi Pollution Control Committee (PAN: AADAD2584N) under Schedule III [Table: Sl. No. 36] read with Section 11 of the Income-tax Act, 2025. The notification covers specified income comprising Government grants and subsidies, consent fees, licence fees and application fees collected under statutory mandate, penalties and fines levied under environmental laws, and interest earned on bank deposits or investments of surplus funds. The notification is subject to the conditions that the Committee shall not engage in any commercial activity, shall file its return of income in accordance with clause (c)(xiii) of sub-section (9) of Section 263 of the Act, and that its activities and the nature of the specified income remain unchanged throughout the financial years. Failure to comply with these conditions will result in withdrawal of the exemption under Schedule III read with Section 11 and initiation of proceedings under the Act. The notification applies for tax years 2026-27 to 2027-28.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 87/2026-Income Tax | Dated: 16th July, 2026
S.O. 3920(E).— In exercise of the powers conferred by Schedule III [Table: Sl. No. 36] read with Section 11 of the Income-tax Act, 2025 (30 of 2025), (hereinafter referred to as the said Act), the Central Government hereby notifies for the purposes of the said clause, ‘Delhi Pollution Control Committee (PAN: AADAD2584N)’, a body constituted by the Central Government under section 4 of the Water (Prevention and Control of Pollution) Act, 1974 (Act No. 6 of 1974) and section 6 of the Air (Prevention and Control of Pollution) Act, 1981 (Act No. 14 of 1981), in respect of the following specified income arising to the said body namely, as follows:
a. Government grants/subsidies;
b. Consent fees, license fees and application fees collected under statutory mandate;
c. Penalties and fines levied under environmental laws; and
d. Interest earned on bank deposits/investments of surplus funds.
2. This notification shall be effective subject to the conditions that Delhi Pollution Control Committee (PAN: AADAD2584N), –
a. shall not engage in any commercial activity;
b. shall file return of income in accordance with the provision of clause (c)(xiii) of sub-section (9) of section 263 of the said Act, 2025; and
c. its activities and the nature of the specified income shall remain unchanged throughoutthe financial years.
3. Failure to comply with the conditions specified in paragraph 2 shall result in withdrawal of exemption under Schedule III [Table: Sl. No. 36] read with section 11 and initiation of proceedings under the said Act.
4. This notification shall be applicable for tax years 2026-27 to 2027-28.
[Notification No. 87/2026/F.No. 300196/75/2024-ITA-I]
HARDEV SINGH, Under Secy.
