The Central Government, through the Central Board of Direct Taxes (CBDT), has issued two notifications concerning the Maharashtra Electricity Regulatory Commission (MERC), PAN: AAAGM0004R, a statutory Commission constituted under the Electricity Regulatory Commissions Act, 1998. The notifications provide for the tax treatment of the Commission under the Income-tax Act, 1961 and the Income-tax Act, 2025, respectively, thereby ensuring continuity of the applicable exemption framework during the transition to the new Income-tax Act.
Under Notification No. 116/2026 [F. No. 195/13/2025-ITA-I], S.O. 4706(E), dated 25 August 2026, the Central Government has notified the Maharashtra Electricity Regulatory Commission for the purposes of section 10(46A) of the Income-tax Act, 1961. The notification has been issued in accordance with the applicable transitional provisions contained in section 536 of the Income-tax Act, 2025.
The notification under the Income-tax Act, 1961 is effective for Assessment Year 2026-27, relevant to Financial Year 2025-26, subject to the condition that the Maharashtra Electricity Regulatory Commission continues to be a Commission constituted under the Electricity Regulatory Commissions Act, 1998 and carries out one or more of the purposes specified in section 10(46A) of the Income-tax Act, 1961.
Section 10(46A) of the Income-tax Act, 1961 provides for exemption of specified income of certain notified bodies, authorities, Boards, Trusts or Commissions, subject to fulfilment of the conditions prescribed therein. Notification No. 116/2026 accordingly recognises MERC for the purposes of the said provision for the specified assessment year.
Further, 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 powers conferred by Schedule VII [Table: Sl. No. 42] read with section 11 of the Income-tax Act, 2025, the Government has notified the Maharashtra Electricity Regulatory Commission for the purposes specified against the relevant entry in Schedule VII.
Notification No. 117/2026 will be effective from Tax Year 2026-27, subject to the condition that MERC continues to be a Commission constituted under the Electricity Regulatory Commissions Act, 1998 and continues to perform one or more of the purposes specified in Schedule VII [Table: Sl. No. 42] of the Income-tax Act, 2025.
The two notifications collectively provide continuity in the statutory tax-exemption framework applicable to the Maharashtra Electricity Regulatory Commission. While Notification No. 116/2026 governs the relevant period under the Income-tax Act, 1961, Notification No. 117/2026 provides for the corresponding treatment under the Income-tax Act, 2025 from Tax Year 2026-27 onwards, subject to fulfilment of the conditions stipulated in the respective notifications.
The Notifications can be accessed at: Notification No. 116/2026 , Notification No. 117/2026
