Section 10(23BBG) of the Income Tax Act provides a full tax exemption for the income of the Central Electricity Regulatory Commission (CERC).
Key Features:
- Eligible Entity: CERC, established under Section 76(1) of the Electricity Act, 2003.
- Nature of Income: All income—including fees, interest, grants, or other receipts—is exempt.
- Purpose: To support CERC’s role as a statutory regulator overseeing India’s electricity sector, ensuring it can function without tax constraints.
Example:
Suppose CERC collects ₹30 crore in a financial year from:
- Licensing and regulatory fees from power companies,
- Interest on deposits, and
- Government grants.
Since CERC is covered under Section 10(23BBG), the entire ₹30 crore is exempt from income tax, allowing it to reinvest fully in regulatory functions and sectoral oversight.
