Section 115BBG of Income Tax Act "Tax on income from transfer of carbon credits"
115BBG. (1) Where the total income of an assessee
includes any income by way of transfer of carbon credits,
the income-tax payable shall be the aggregate of-
(a) the amount of income-tax calculated on the income by way
of transfer of carbon credits, at the rate of ten per cent;
and
(b) the amount of income-tax with which the assessee would
have been chargeable had his total income been reduced by
the amount of income referred to in clause (a).
(2) Notwithstanding anything contained in this Act, 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 to in clause (a) of
sub-section (1).
Explanation.-For the purposes of this section, "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.]