The Central Government, through the Central Board of Direct Taxes (CBDT), has issued two notifications regarding the Maharashtra Electricity Regulatory Commission (MERC), PAN: AAAGM0004R. This statutory commission was established under the Electricity Regulatory Commissions Act of 1998.
The notifications detail the tax treatment of the Commission under both the Income-tax Act of 1961 and the new Income-tax Act of 2025. They ensure that the applicable exemption framework remains consistent during the transition to the new Income-tax Act.
The Central Government under Notification No. 116/2026 [F. No. 195/13/2025-ITA-I], S.O. 4706(E), dated 25 August 2026, has reported the Maharashtra Electricity Regulatory Commission for the purposes of section 10(46A) of the Income-tax Act, 1961. The notification has been issued within the applicable transitional provisions included in section 536 of the Income-tax Act, 2025.
As per the Income-tax Act, 1961, this notification takes effect for the 2026-27 assessment year, which relates to the 2025-26 financial year, under the condition that the Maharashtra Electricity Regulatory Commission continues to be a commission formed under the Electricity Regulatory Commissions Act, 1998 and execute one or more of the purposes mentioned in section 10(46A) of the Income-tax Act, 1961.
Section 10(46A) of the Income-tax Act, 1961 furnishes waiver of the mentioned income of notified bodies, authorities, Boards, Trusts or Commissions, subject to completion of the conditions stipulated therein. Notification No. 116/2026 formally designates MERC as the authorised body for the specified assessment year under this provision.
The Central Government has issued Notification No. 117/2026 [F. No. 195/13/2025-ITA-I], S.O. 4707(E), dated 25 August 2026, under the Income-tax Act, 2025. In exercise of the authority granted under Schedule VII [Table: Sl. No. 42] read with section 11 of the Income-tax Act, 2025, the Government has reported the Maharashtra Electricity Regulatory Commission for the purposes specified against the relevant entry in Schedule VII.
From tax year 2026-27, the Notification No. 117/2026 will come into force, subject to the condition that MERC continues to be a commission formed under the Electricity Regulatory Commissions Act, 1998 and continues to function for one or more of the objectives mentioned in Schedule VII [Table: Sl. No. 42] of the Income-tax Act, 2025.
The two notifications deliver continuity in the regulatory tax-exemption structure applicable to the Maharashtra Electricity Regulatory Commission. Notification No. 116/2026 outlines the applicable time frame under the Income-tax Act of 1961, while Notification No. 117/2026 details the corresponding treatment under the Income-tax Act of 2025 for the tax year 2026-27 and onward. This treatment is subject to the fulfilment of the conditions specified in each notification.
Read Notification No. 116
Read Notification No. 117
