The Finance Ministry has given the National Mission for Clean Ganga (NMCG) tax exemption, as per a recent notification by the Central Board of Direct Taxes (CBDT), which manages income tax and direct taxes.The government announced on April 22, 2025, that certain organisations like boards, trusts, or authorities (but not private companies) wouldn’t have to pay income tax if they were created under a Central or State law to do specific types of public work.

The notification states: "In exercise of the powers conferred…the Central Government hereby notifies the 'National Mission for Clean Ganga', an authority constituted under the Environment (Protection) Act, 1986 (No. 29 of 1986), for the purposes of the said clause."

The notification also clarified that the NMCG, which runs the government's Namami Gange program to clean the Ganga River, is now officially recognized as an authority under the Environment (Protection) Act of 1986.This means the NMCG will be exempt from paying income tax starting from the 2024-25 financial year. However, this exemption is given under a condition that says NMCG will have to operate as an authority under the Environment (Protection) Act, with specific objectives mentioned in the Income Tax Act.

These objectives generally focus on sustainable development, protecting the environment, and improving public welfare.The National Mission for Clean Ganga (NMCG), which operates under the Ministry of Jal Shakti, runs various projects across multiple states. These include cleaning the river, treating sewage, afforestation (planting trees), monitoring industrial waste, and encouraging public participation in efforts to conserve the Ganga.

The Finance Ministry decision to make the National Mission for Clean Ganga (NMCG)  tax free came after a report by ‘The Indian Express’ last month exposing the mission’s struggles with income tax notices. According to sources, officials from the Jal Shakti Ministry then approached the Finance Ministry and held discussions on the matter. The NMCG had been facing tax demands worth ₹243.74 crore and was preparing to file appeals against the assessment orders. It had also requested the CBDT to let it revise its income tax returns.