CBDT Exempts JERC from Tax (AY 2024–25)

Current position — reviewed 22 August 2026

The notification reported here remains the operative basis of the exemption.

• The exemption was notified under the Income-tax Act, 1961 and applies from AY 2024-25 onwards, subject to the conditions in the notification.
• With effect from 1 April 2026 the Income-tax Act, 2025 governs assessments; notifications issued under the 1961 Act continue in force under its transitional provisions unless separately withdrawn.

In a significant policy move aimed at strengthening statutory regulatory bodies, the Central Board of Direct Taxes (CBDT) has officially granted income tax exemption to the Joint Electricity Regulatory Commission (for the State of Goa and Union Territories, excluding Delhi). The exemption has been approved under Section 10(46A) of the Income-tax Act, 1961 and will be applicable from Assessment Year (AY) 2024–25 onwards.

Official Notification Details

The exemption has been notified through an official government notification dated January 6, 2026, issued by the Ministry of Finance, Department of Revenue. As per the notification, the Central Government has exercised its powers under sub-clause (b) of clause (46A) of Section 10 to grant tax relief to the said authority.

The Joint Electricity Regulatory Commission, bearing PAN: AAAJJ0668D, is a statutory body constituted under the Electricity Act, 2003. The Commission plays a vital role in regulating electricity tariffs, ensuring fair competition, safeguarding consumer interests, and promoting transparency in the power sector across Goa and the specified Union Territories.

Scope and Conditions of the Exemption

The income tax exemption is purpose-specific and applies only to income generated while carrying out activities specified under sub-clause (a) of Section 10(46A). This means the exemption is not blanket in nature but is restricted to statutory and regulatory functions as defined under the law.

Additionally, the notification clearly states that the exemption will remain valid only so long as the Commission continues to be constituted under the Electricity Act, 2003 and performs functions aligned with the objectives laid down in Section 10(46A).

Effective From AY 2024–25

Although the notification was issued in January 2026, its applicability has been given retrospective effect from Assessment Year 2024–25. This ensures continuity in tax treatment and provides financial certainty to the Commission for prior and future years.

Why This Matters

Granting tax exemption to statutory regulatory authorities serves multiple objectives:

• Ensures optimal utilization of public funds
• Reduces financial and compliance burden
• Strengthens institutional independence
• Encourages effective governance and regulation

Such exemptions reflect the government’s intent to support autonomous bodies that function in the public interest without profit motives.

Reference to Official Notification

Tax professionals, regulatory authorities, and other stakeholders are advised to refer to the official CBDT notification for complete and authoritative details regarding the scope, conditions, and applicability of the exemption.