📰 Why in the News?
The Central Board of Direct Taxes (CBDT) has granted tax-exempt status to the National Mission for Clean Ganga (NMCG) under the Income Tax Act, 1961. This move strengthens the financial capacity and autonomy of NMCG in driving its mission under the Namami Gange Programme.
🌊 Namami Gange Programme: An Overview
✅ Flagship Initiative
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Launched: 2014
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Budget: ₹20,000 crore
Aim:
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Pollution abatement and rejuvenation of the Ganga River.
🏢 Institutional Setup:
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Administered by: Ministry of Jal Shakti.
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Executed through:
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National Mission for Clean Ganga (NMCG)
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State Program Management Groups (SPMGs)
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🧭 Oversight and Monitoring:
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NMCG is the implementing arm of the National Ganga Council (NGC), chaired by the Prime Minister.
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NGC replaced the National Ganga River Basin Authority (2016).
🧩 Three-Tier Monitoring Structure:
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National Level: Task Force led by the Cabinet Secretary.
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State Level: Chaired by the Chief Secretary, assisted by SPMGs.
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District Level: Led by District Magistrates.
⏳ Implementation Timeline
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Entry-Level: Immediate impact.
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Medium-Term: Within 5 years.
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Long-Term: Within 10 years.
📈 Recent Developments: CBDT Notification
📜 Legal Provision:
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Clause 46A of Section 10, Income Tax Act, 1961:
This provision applies to bodies set up under a Central/State Act for public purposes. -
NMCG qualifies under the Environment (Protection) Act, 1986.
📅 Effective From:
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Assessment Year (AY): 2024–25
⚠️ Conditions:
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NMCG must continue to operate within the legal mandate of the Environment (Protection) Act.
🔍 Significance of Tax-Exempt Status
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Smoother Fund Flow:
The exemption boosts NMCG’s financial autonomy, enabling uninterrupted project execution. -
Operational Efficiency:
The tax exemption helps resolve previous financial and legal issues, facilitating faster implementation of projects.
🔄 Legal and Structural Transition of NMCG
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2011: Initially registered as a society under the Societies Registration Act, 1860.
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2016: Upgraded to an authority under the Environment (Protection) Act.
Despite its upgraded status, NMCG faced tax issues, continuing to be treated as an Association of Persons (AOP), resulting in tax scrutiny.
💸 Income Tax Disputes and Resolution
🧾 Tax Demands:
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NMCG faced demands totaling ₹243.74 crore.
🕊️ CBDT Relief Measures:
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Condonation granted for delayed filing of returns.
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Retrospective exemption claims allowed.
🏛️ Role of Ministry of Jal Shakti:
Facilitated the resolution with Finance Ministry coordination, easing NMCG’s tax burden.
✅ Conclusion: Empowering Mission Ganga
The tax-exempt status of NMCG:
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Clears Legal and Financial Hurdles: NMCG gains greater operational autonomy.
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Boosts Financial Stability: It ensures smooth fund flow, vital for project implementation.
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Reinforces Government Commitment: Reflects a sustained commitment to Ganga rejuvenation.
🗣️ A cleaner Ganga requires not just governmental willpower, but capable institutions empowered with financial stability to deliver on ambitious environmental goals.