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<h1>Carbon Credit Income Now Taxed at 10% Flat Rate, Disallowing Deductions and Promoting Green Initiatives Under New Tax Framework</h1> Legal analysis of carbon credit taxation under the Income Tax Bill, 2025, reveals a comprehensive regime for taxing income from carbon credit transfers. The provision establishes a flat 10% tax rate for all persons transferring carbon credits validated by the United Nations Framework on Climate Change. Key features include disallowing any deductions, providing tax certainty, and incentivizing green initiatives. The approach closely mirrors existing legislation, focusing on simplifying tax computation and encouraging environmentally beneficial projects while ensuring strict validation standards.