Indian Income Tax | Regulatory Authorities
Section 10(23BBG) Income Tax Exemption for Central Electricity Regulatory Commission
Section 10(23BBG) of the Income-tax Act, 1961 provides an entity-specific income-tax exemption for the Central Electricity Regulatory Commission (CERC), the central electricity regulator constituted under the Electricity Act, 2003.
Meaning of Section 10(23BBG)
Section 10(23BBG) identifies the Central Electricity Regulatory Commission constituted under sub-section (1) of Section 76 of the Electricity Act, 2003 as the eligible body. Under the Income-tax Act, 1961, the income of that Commission is excluded from the computation of total income by this clause.
Who is eligible and what is exempt?
| Eligible assessee | Central Electricity Regulatory Commission (CERC). |
|---|---|
| Establishing provision | Section 76(1) of the Electricity Act, 2003. |
| Nature of income | Income of the specified Commission, rather than only a particular category of receipts. |
| Extent of exemption | Entire income of the specified Commission under the exemption as applicable for the relevant year under the Income-tax Act, 1961. |
| Core condition | The income must belong to the Central Electricity Regulatory Commission constituted under the cited law. |
Section 76(1) of the Electricity Act, 2003
Section 76(1) provides for the constitution of the Central Electricity Regulatory Commission. CERC is the statutory central-level regulator for functions assigned under the Electricity Act, 2003, including specified tariff and regulatory matters. Its powers and functions are addressed in the Electricity Act, particularly Section 79.
For the precise legislative wording, consult the official India Code repository and the Central Electricity Regulatory Commission website.
Conditions and scope of the exemption
- Correct legal entity: The exemption is for CERC as constituted under Section 76(1), not for every organization operating in the electricity sector.
- Income of the Commission: Receipts must be income of the qualifying statutory body. The exemption is not a personal tax benefit for its members, officers or employees.
- Applicable tax year: Confirm the legislation governing the tax period, including any successor provision and transitional rules.
- Other obligations: An income-tax exemption should not be taken to remove unrelated statutory, accounting, withholding or reporting duties without examining those rules independently.
Does the exemption apply to State Electricity Regulatory Commissions?
Section 10(23BBG) expressly concerns the Central Electricity Regulatory Commission. State Electricity Regulatory Commissions are constituted under a different provision of the Electricity Act, 2003. Their income-tax position should be assessed separately under the applicable law; they should not claim the central Commission's exemption solely by analogy.
Income-tax law applicable from 1 April 2026
The Income-tax Act, 2025 came into effect on 1 April 2026. Section 10(23BBG) is a reference to the Income-tax Act, 1961 and is relevant when interpreting periods governed by that legislation. For periods under the new Act, verify the corresponding exemption and the applicable transitional provisions in the enacted law and official guidance before relying on the older section number.
Official legal references
- Income Tax Department: Income-tax legislation
- India Code: Electricity Act, 2003 and income-tax legislation
- Central Electricity Regulatory Commission
- Income Tax Department e-Filing portal
Frequently asked questions
Which authority is covered by Section 10(23BBG)?
The Central Electricity Regulatory Commission constituted under Section 76(1) of the Electricity Act, 2003.
What income is exempt under the provision?
The provision excludes income of the specified Commission from total income under the Income-tax Act, 1961, for periods governed by that Act.
Does the exemption cover state electricity regulatory commissions?
No. Section 10(23BBG) specifically names the Central Electricity Regulatory Commission. A state commission must examine the legal provisions applicable to it.
Does this section apply unchanged from April 2026?
The Income-tax Act, 2025 applies from 1 April 2026. The corresponding current provision and any transitional rules should be checked for the relevant tax year.
This information is intended as a general statutory overview. Refer to the legislation applicable to the relevant tax year for an authoritative determination.