NMCG Receives Tax Exemption

April 29, 2025

The National Mission for Clean Ganga (NMCG) has recently received tax exemptions from the Central Board of Direct Taxes (CBDT). This decision allows NMCG to be recognised as an authority under clause 46A of section 10 of the Income Tax Act, 1961. This exemption is crucial as it alleviates NMCG’s tax liabilities, enabling it to focus on its core mission of rejuvenating the Ganga River.

About Section 10 of the Income Tax Act

Section 10 of the Income Tax Act, 1961 outlines various exemptions applicable to different entities. This includes bodies established under Central or State Acts for specific purposes. The NMCG, constituted under the Environment (Protection) Act, 1986, qualifies for these exemptions. This section helps reduce the tax burden on public authorities, encouraging them to fulfil their mandates.

Role of NMCG in Ganga Rejuvenation

NMCG was launched under the Namami Gange programme to tackle pollution in the Ganga River. Established in 2011, it aims to provide financial and technical assistance for river conservation. The mission focuses on wastewater treatment, riverfront development, and biodiversity conservation. It has sanctioned numerous projects aimed at reducing pollution and restoring the river’s ecosystem.

Recent Tax Challenges Faced by NMCG

NMCG faced tax demands amounting to ₹243.74 crore. Issues arose due to its classification as an Association of Persons (AOP) rather than an authority. This led to scrutiny by the Income Tax department, resulting in multiple notices. NMCG contested these assessments and sought to revise its tax returns for previous years.

International Collaboration

NMCG has engaged in international partnerships to enhance its efforts. Collaborations with countries like Germany have led to financial assistance for river rejuvenation projects. These partnerships aim to bring in technical expertise and additional funding to tackle pollution effectively.

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