Section 115BBG → Section 122
Tax on income from transfer of carbon credits
Quick Answer
Section 115BBG of the Income Tax Act, 1961 (Tax on income from transfer of carbon credits) corresponds to Section 122 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 115BBG
Provision Summary
Provides a concessional tax rate of 10% on income arising from the transfer of validated carbon credits.
Sec 122
Provision Summary
Retained to align with global ESG (Environmental, Social, and Governance) and climate change initiatives.
Key Changes & Highlights
- Integration with the national carbon registry to validate genuine credit transfers.
Frequently Asked Questions
What does Section 115BBG of the Income Tax Act 1961 deal with?
Section 115BBG (Tax on income from transfer of carbon credits) Provides a concessional tax rate of 10% on income arising from the transfer of validated carbon credits.
What is the new section number for Section 115BBG under the Direct Tax Code 2025?
Section 115BBG of the ITA 1961 maps to Section 122 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 115BBG under the new tax code?
Section 115BBG is marked as "Retained" with status "Active". Impact: Medium - Supports green energy producers.
What are the key changes to Section 115BBG under DTC 2025?
Integration with the national carbon registry to validate genuine credit transfers.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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