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 income tax exemption. NMCG is the implementing body of the government’s flagship Namami Gange programme for cleaning and rejuvenating River Ganga.
Key Highlights
- NMCG has been notified as an authority constituted under the Environment (Protection) Act, 1986.
- Under clause 46A of section 10 of the Income Tax Act, 1961, income earned by such authorities is exempt from income tax.
- The tax exemption will apply starting from assessment year 2024-25, provided NMCG continues to function under the Environment (Protection) Act, 1986, and fulfill purposes specified under clause (46A), including:
- Promotion of sustainable development
- Conservation of the environment
- Advancement of public welfare
- CBDT also allowed condonation of delay in filing revised income tax returns for assessment years 2021-22, 2022-23, and 2023-24, enabling NMCG to claim tax exemption for past years as well.
Background & Income Tax Issues
| Aspect | Details |
| Initial Registration | Registered as Society under Societies Registration Act, 1860 on 12 August 2011 |
| Upgradation | Declared as an Authority under Environment (Protection) Act, 1986 on 7 October 2016 |
| PAN Status Issue | PAN status remained as Association of Persons (AOP) despite upgrade |
| Result | Flagged by IT system as high-income entity → faced tax notices and demands |
| Tax Demands | NMCG faced income tax demands of ₹243.74 crore |
| Relief Measures | CBDT condoned delay in filing revised returns, i.e. NMCG can now claim tax exemptions retrospectively |
| Ministry Intervention | Ministry of Jal Shakti intervened with Ministry of Finance for resolution |
About National Mission for Clean Ganga (NMCG)
| Aspect | Details |
| Launched | Approved in 2014 as Flagship Programme by Union Government |
| Budget | ₹20,000 crore allocated |
| Administered By | Ministry of Jal Shakti (Department of Water Resources, River Development & Ganga Rejuvenation) |
| Objectives | – Effective abatement of pollution- Conservation & rejuvenation of River Ganga |
| Implementation Agency | National Mission for Clean Ganga (NMCG) with State Program Management Groups (SPMGs) |
| Oversight Body | National Ganga Council (NGC), formed in 2016 under River Ganga (Rejuvenation, Protection and Management) Authorities Order, 2016 |
| NGC Chairperson | Prime Minister of India |
| Pillars of Namami Gange | – Sewage treatment infrastructure- River surface cleaning- Riverfront development- Biodiversity conservation- Afforestation- Public awareness- Industrial effluent monitoring- Ganga Gram initiative |
Monitoring Mechanism:
- National Level: High-Level Task Force chaired by Cabinet Secretary, assisted by NMCG.
- State Level: Committee chaired by Chief Secretary, assisted by SPMG.
- District Level: Committee chaired by District Magistrate.
Implementation Phases:
- Entry-Level Activities: Immediate visible impact
- Medium-Term Activities: Within 5 years
- Long-Term Activities: Within 10 years
Significance of Tax Exemption
- Resolves long-standing tax disputes for NMCG.
- Frees funds for environmental conservation and rejuvenation work.
- Strengthens institutional framework for sustainable development of River Ganga.
- Ensures NMCG functions fully as an authority under law, rather than a taxed entity.