(a) the amount of income-tax calculated on the income
by way of transfer of carbon credits, at the rate of ten per cent.; and

(b) the amount of income-tax with which the assessee
would have been chargeable had his
total income been reduced by the amount of income
referred to in clause (a).

(2) Notwithstanding anything contained in this Act, no
deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of this Act in computing his income referred to in clause (a) of sub-section (1).

Explanation.––For the purposes of this section “carbon
credit” in respect of one unit shall mean reduction of
one tonne of carbon dioxide emissions or emissions of
its equivalent gases which is validated by the United
Nations Framework on Climate Change and which can  be traded in market

at its prevailing market price.