The Ministry of Finance, through CBDT Notification No. 169/2025 dated 4 December 2025, has formally notified the Tamil Nadu Pollution Control Board (TNPCB) under Section 10(46A) of the Income-tax Act, 1961. This notification grants income-tax exemption to the Board from the assessment year 2024-25 onwards, recognizing it as an eligible authority constituted under the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981. The exemption is conditional upon the Board continuing to operate as a statutory body with purposes aligned to those specified in Section 10(46A)(a), which relates to regulatory and service-oriented functions performed in public interest. The Explanatory Memorandum clarifies that providing the notification with retrospective effect does not adversely affect any person. The notification reinforces the tax-exempt status of statutory pollution control authorities engaged in environmental protection and regulatory functions under State legislation.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 169/2025 – Income Tax | Dated: 4th December, 2025
S.O. 5601(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 “Tamil Nadu Pollution Control Board” (PAN: AAALT0344G) (hereinafter referred to as “the assessee”), a board constituted under the Water (Prevention and Control of Pollution) Act, 1974 (Central Act 6 of 1974) and the Air (Prevention and Control of Pollution) Act, 1981 (Central Act 14 of 1981) by the State Government of Tamil Nadu for the purposes of the said clause.
2. This notification shall be effective from the assessment year 2024-25, subject to the condition that the assessee continues to be a board constituted under the Water (Prevention and Control of Pollution) Act, 1974 (Central Act 6 of 1974) and the Air (Prevention and Control of Pollution) Act, 1981 (Central Act 14 of 1981) 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. 169/2025/F. No. 300195/59/2024-ITA-I]
HARDEV SINGH, Under Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect to this notification.
