The Hindu Business Line : Carbon credits to be taxed in new tax regime

Some industry observers, however, contend that bringing carbon credits into tax net may be a retrograde step as it will discourage corporates from working towards reduction in carbon emissions and preventing global warming.

China and India account for about 75 per cent of the carbon credits issued, according to the United Nations Framework for Climate Change. Many Indian corporates had in the recent years earned tidy profits from carbon credit trade, but had not provided for any tax in the books of accounts in the absence of specific provision in the income tax law.