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CBDT Grants Tax Exemption to Petroleum and Natural Gas Regulatory Board Effective from AY 2024-25
On November 12, 2024, the Central Board of Direct Taxes (CBDT) issued a notification granting tax-exempt status to the Petroleum and Natural Gas Regulatory Board (PNGRB) under section 10(46A)(b) of the Income-tax Act, 1961. This exemption is set to be effective from the assessment year 2024-25, allowing the regulatory board relief from income tax, provided it continues to fulfill its statutory functions as outlined in the Petroleum and Natural Gas Regulatory Board Act, 2006.
The PNGRB, which holds a vital role in the regulation of India’s petroleum and natural gas sector, will benefit from this exemption by reallocating resources toward enhancing its regulatory infrastructure and oversight capabilities. The notification (No. 118/2024) specifies that PNGRB’s tax-exempt status will remain valid as long as it maintains its constituted role and objectives under the 2006 Act.
This move underscores the government’s commitment to bolstering the regulatory framework for energy resources, aligning with the broader economic goals of sustainable and secure energy management. By supporting regulatory bodies with tax exemptions, the government aims to enhance sectoral stability, ensuring that resources are directed towards regulatory functions rather than tax liabilities.
For industry stakeholders, this announcement reaffirms the government’s proactive measures to strengthen the energy regulatory landscape. Analysts view this tax exemption as a positive step, promoting regulatory robustness and contributing to India’s energy security goals.
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