Tax on income from transfer of carbon credits - Section 115BBG - Income Tax - Ready Reckoner - Income Tax

Tax on income from transfer of carbon credits - Section 115BBG the following section shall be inserted with effect from the 1st day of April, 2018,​ ​​​​​. Where the total income of an assessee includes any income by way of transfer of carbon credits, the income-tax payable shall be @ 10% (Plus applicable surcharge and cess) on the income by way of transfer of carbon credits, and at normal rate of tax on the balance of income. No deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of this Act in computing his income referred above. Note:- carbon credit in respect of one unit shall mean reduction of one tonne of carbon dioxide emissions or emissions of its equivalent gases which is validated by the United Nations Framework on Climate Change and which can be traded in market at its prevailing market price.