Section 115BBG: 10% Tax on Carbon Credit Transfers, No Deductions Allowed, Effective April 1, 2018.

Section 115BBG, effective from April 1, 2018, imposes a 10% income tax rate, plus applicable surcharge and cess, on income from the transfer of carbon credits, with the normal tax rate applied to other income. No deductions for expenditures or allowances are permitted when calculating this specific income. A "carbon credit" is defined as the reduction of one tonne of carbon dioxide emissions or equivalent gases, validated by the United Nations Framework on Climate Change, and tradable at market price.