Current Affairs: Passage of the Day - 30 April 2025 | Current Affairs & General Knowledge - CLAT PDF Download

Directions: Read the passage carefully and answer the questions that follow.
The Central Board of Direct Taxes (CBDT) has notified the National Mission for Clean Ganga (NMCG) as an authority under clause 46A of section 10 of the Income Tax Act, 1961, granting it exemptions from taxes on income. NMCG implements the Union government’s ambitious Namami Gange scheme.
The notification was issued on April 22, 2025. The clause allows tax exemption for any income arising to a body, authority, board, trust, or commission, not being a company, which has been established or constituted by or under a Central or State Act for specified purposes.
“In exercise of the powers conferred…the Central Government hereby notifies the “National Mission for Clean Ganga”, an authority constituted under the Environment (Protection) Act, 1986 (No.29 of 1986), for the purposes of the said clause,” states the notification.
“This notification shall be effective from the assessment year 2024-25, subject to the condition that the assessee continues to be an authority constituted under the Environment (Protection) Act, 1986 (No.29 of 1986), with one or more of the purposes specified in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act,” it reads.
CBDT, which comes under the Ministry of Finance, has also allowed NMCG’s application seeking condonation of the delay in filing revised return of income for assessment years 2021-22, 2022-23 and 2023-24. The move will allow NMCG to avail of income tax exemptions for previous assessment years.
CBDT’s move came after The Indian Express highlighted NMCG’s tax woes in its report— “Grappling with I-T notices, Clean Ganga Mission says ‘faceless assessment process has made matters more difficult”—published last month. Following this, the Jal Shakti Ministry officials took up the matter with their counterparts in the Ministry of Finance and held a round of meetings, say sources.
The report highlighted that NMCG, facing tax demands amounting to Rs 243.74 crore, contested the I-T department’s assessment orders and was in the process of filing appeals. The mission had requested CBDT to allow it to revise its returns.
Initially registered as a society on August 12, 2011, under the Societies Registration Act, 1860, NMCG was later upgraded to an ‘authority’ on October 7, 2016, under the Environment (Protection) Act, 1986. Despite this transition, its PAN remained categorised as an Association of Persons (AOP). This led to scrutiny by the I-T department’s software, which flagged it as a high-income entity, resulting in repeated tax notices.
The issue was raised in joint meetings of NMCG’s Audit Review Committee (ARC) and Budget Review Committee (BRC). At the recent meeting on February 7, NMCG officials highlighted the ongoing tax concerns.
“Since NMCG’s PAN is in the capacity of ‘Association of Persons’, NMCG has been receiving a number of notices from IT department every year. While the notices for AY 2023-24 & 2024-25 have been resolved, two major demands of AY 2022-23 amounting to Rs 243.74 crore are pending. NMCG has contested the orders and is in the process of filing appeals against the assessment order,” stated the minutes of the meeting circulated on March 11.
[Excerpt from Indian Express "NMCG Receives Tax Exemption" Dated 30/04/25]

Q1: Under which section of the Income Tax Act has NMCG been granted tax exemption?
(a) Section 80C
(b) Section 12A
(c) Section 10, Clause 46A
(d) Section 35AC

View Answer  

Ans: (c)
Sol: NMCG received tax exemption under clause 46A of Section 10 of the Income Tax Act, 1961.

Q2: NMCG was established under which of the following Acts?
(a) Water (Prevention and Control of Pollution) Act
(b) Income Tax Act, 1961
(c) Environment (Protection) Act, 1986
(d) Companies Act, 2013

View Answer  

Ans: (c)
Sol: NMCG was constituted under the Environment (Protection) Act, 1986.

Q3: What was the main reason for tax notices being issued to NMCG?
(a) Delay in project execution
(b) Classified as a company
(c) Classified as an Association of Persons (AOP)
(d) Failed to file income tax returns

View Answer  

Ans: (c)
Sol: NMCG was earlier classified as an Association of Persons (AOP), which led to tax assessments and notices.

Q4: Which country has collaborated with NMCG to provide technical and financial assistance for river rejuvenation?
(a) Japan
(b) France
(c) Germany
(d) United States

View Answer  

Ans: (c)
Sol: NMCG has partnered with Germany for support in its river rejuvenation efforts.

Q5: What is one of the key focus areas of NMCG under the Namami Gange programme?
(a) Building dams for irrigation
(b) Biodiversity conservation
(c) Highway development along the Ganga
(d) Promoting inland shipping

View Answer  

Ans: (b)
Sol: Among its goals, NMCG focuses on biodiversity conservation, along with wastewater treatment and riverfront development.