CBDT Grants Tax Exemption to Telangana State Pollution Control Board Under Section 10(46)

The Central Board of Direct Taxes (CBDT) has granted a significant income tax exemption to the Telangana State Pollution Control Board under Section 10(46) of the Income Tax Act. This exemption specifically applies to the Board's income derived from its core regulatory functions. The CBDT's decision recognizes environmental regulation as an inherent sovereign activity of the state, thereby exempting fees and charges collected by the Board for crucial functions such as pollution monitoring, issuing consents for establishment and operation, and other statutory duties from the purview of income tax.