Tax on transfer of carbon credits treated at a special concessional rate; no deductions allowed and balance income taxed normally. Income arising from transfer of carbon credits is taxed at a concessional flat rate of ten percent plus applicable surcharge and cess, with the balance of the assessee's income taxed at normal rates; no deduction for any expenditure or allowance is permitted in computing income from such transfers. A carbon credit is defined as a validated reduction of one tonne of carbon dioxide or equivalent gases recognised by the UNFCCC and tradable at market price.