The Ministry of Finance, through the Central Board of Direct Taxes (CBDT), issued Notification No. 36/2026 dated March 27, 2026, granting income tax exemption under Section 10(46A) of the Income-tax Act, 1961 to the Andhra Pradesh Pollution Control Board. The Board, constituted under the Water (Prevention and Control of Pollution) Act, 1974, has been recognized as an eligible statutory authority performing public functions related to environmental protection and regulation. The exemption will be effective from Assessment Year 2027–28, subject to the condition that the Board continues to function under the relevant statutory framework and fulfills the prescribed purposes under Section 10(46A). This notification ensures that income earned by such regulatory bodies engaged in public welfare activities qualifies for tax exemption. It also provides clarity on tax treatment, reinforcing the government’s intent to support statutory authorities involved in environmental governance and public service functions.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 27th March, 2026
Notification No. 36/2026 – Income Tax | Dated: 27th March, 2026
S.O. 1624(E).—In exercise of the powers conferred by sub-clause (b) of clause (46A) of section 10 of the Income-tax Act, 1961 (43 of 1961), (hereinafter referred to as “the Income-tax Act”), the Central Government hereby notifies “Andhra Pradesh Pollution Control Board” (PAN: AAAJA1610Q) (hereinafter referred to as “the assessee”), a Board established by the State Government of Andhra Pradesh under the Water (Prevention and Control of Pollution) Act, 1974, for the purposes of the said clause.
2. This notification shall be effective from the assessment year 2027-28, subject to the condition that the assessee
continues to be a Board established by the State Government of Andhra Pradesh under section 4 of the Water (Prevention and Control of Pollution) Act, 1974, with one or more of the purposes specified in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act.
[NOTIFICATION No. 36 /2026/F. No. 300195/37/2025-ITA-I]
HARDEV SINGH, Under Secy.
