National Mission for Clean Ganga gets tax relief; declared an ‘authority’ under I-T law
The Central Board of Direct Taxes (CBDT) has notified the National Mission for Clean Ganga (NMCG) as an authority under clause 46A of section 10 of the Income Tax Act, 1961, granting it exemptions from taxes on income. NMCG implements the Union government’s ambitious Namami Gange scheme.
The notification was issued on April 22, 2025. The clause allows tax exemption for any income arising to a body, authority, board, trust, or commission, not being a company, which has been established or constituted by or under a Central or State Act for specified purposes.
“In exercise of the powers conferred…the Central Government hereby notifies the “National Mission for Clean Ganga”, an authority constituted under the Environment (Protection) Act, 1986 (No.29 of 1986), for the purposes of the said clause,” states the notification.
“This notification shall be effective from the assessment year 2024-25, subject to the condition that the assessee continues to be an authority constituted under the Environment (Protection) Act, 1986 (No.29 of 1986), with one or more of the purposes specified in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act,” it reads.
CBDT, which comes under the Ministry of Finance, has also allowed NMCG’s application seeking condonation of the delay in filing revised return of income for assessment years 2021-22, 2022-23 and 2023-24. The move will allow NMCG to avail of income tax exemptions for previous assessment years.
CBDT’s move came after The Indian news highlighted NMCG’s tax woes in its report— “Grappling with I-T notices, Clean Ganga Mission says ‘faceless assessment process has made matters more difficult”—published last month. Following this, the Jal Shakti Ministry officials took up the matter with their counterparts in the Ministry of Finance and held a round of meetings, say sources.
The report highlighted that NMCG, facing tax demands amounting to Rs 243.74 crore, contested the I-T department’s assessment orders and was in the process of filing appeals. The mission had requested CBDT to allow it to revise its returns.
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Initially registered as a society on August 12, 2011, under the Societies Registration Act, 1860, NMCG was later upgraded to an ‘authority’ on October 7, 2016, under the Environment (Protection) Act, 1986. Despite this transition, its PAN remained categorised as an Association of Persons (AOP). This led to scrutiny by the I-T department’s software, which flagged it as a high-income entity, resulting in repeated tax notices.
The issue was raised in joint meetings of NMCG’s Audit Review Committee (ARC) and Budget Review Committee (BRC). At the recent meeting on February 7, NMCG officials highlighted the ongoing tax concerns.
“Since NMCG’s PAN is in the capacity of ‘Association of Persons’, NMCG has been receiving a number of notices from IT department every year. While the notices for AY 2023-24 & 2024-25 have been resolved, two major demands of AY 2022-23 amounting to Rs 243.74 crore are pending. NMCG has contested the orders and is in the process of filing appeals against the assessment order,” stated the minutes of the meeting circulated on March 11.
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