Incomes Exempt from Tax

Section Eligible Assessee Nature of income Amount exempt Conditions laid down for such exemption 10(1) Any assessee Agricultural income Entire amount of such income Agricultural income is defined in section 2(1A) which means any rent or revenue derived from land situated in India and used for agricultural purpose and subject to other conditions It includes income from such land by agriculture or from performance / sales by cultivator or receiver of rent in kind to render produce raised or received to make it fit to take it to market It also includes income derived from saplings or seedlings grown in nursery Income derived from any building owned or occupied by cultivator or receiver of rent used for purpose referred in para 2 above provided that specified conditions are fulfilled. However income derived from processing of agricultural produce would not be considered as agricultural income. Land qualifies to be an agricultural land if it is assessed to land revenue or is subjected to local rate assessed and collected by officer of the government and if the same is no so assessed then in such case it is not situated within the jurisdiction of a municipality or a cantonment board and which has a population of not less than ten thousand It is in any area, where the distance measured aerially, is not within two kilometers from the local limits of any municipality or cantonment board and which has a population of more than ten thousand but not exceeding one lakh It is in any area, where the distance measured aerially, is not within six kilometers from the local limits of any municipality or cantonment board and which has a population of more than one lakh but not exceeding ten lakhs It is in any area, where the distance measured aerially, is not within eight kilometers from the local limits of any municipality or cantonment board and which has a population of more than ten lakhs Income under this clause would be included in total income for limited purpose of determining rate of tax. 10(2) Any individual as a member of HUF Any sum received as a member of HUF Entire amount so received Sum is received out of income of HUF In case of impartible estate, such sum is paid out of income of the estate belonging to family Sum so received is subjected to provisions of section 64(2) 10(2A) Partner of the firm Share of profit in total income of the firm Entire amount The firm is separately assessed to tax as such The amount exempt would be such which bears the same ratio of total income of the firm, as the amount of his share in the profit of the firm as per partnership deed 10(4)(i) Non resident Assessee Interest or premium on securities or bonds specified by central govt. before 1st June, 2002 Entire amount Special securities are notified as per notification No. SO.3331 dt. 19.10.1965 10(4)(ii) An individual being non-resident as defined under section 2(q) of FEMA, 1999 Interest earned on money standing in credit of his NRE account Entire amount The person is either non resident or is allowed to maintain NRE account by RBI Money in the said account is deposited in accordance with FEMA , 1999 10(4B) A non-resident individual who is either citizen of India or person of Indian Origin Interest on specified savings certificates issued before 1st June, 2002 Entire amount The individual has subscribed to such certificates in convertible foreign exchange remitted from out of India 10(5) An individual Leave travel concession or assistance received or due from employer or former employer Amount received or actually spent, on travel to any place in India as specified in Rule 2B, whichever is lower. The concession is allowed for the travel of self, spouse and children including wholly or mainly dependent parents, brothers and sisters. However, there is a restriction on number of children (Rule 2B). For this purpose, child includes step child and adopted child also. The amount received after the retirement or termination of employment is also allowed subject to other conditions The limit of amount allowed as deduction (refer Rule 2B) The exemption under this section is allowed for two journeys made in the block of four years (Block starts from 1986) 10(6)(ii) An individual not being citizen of India Remuneration received as an official or as a member of staff of the officials of an embassy, high commission, legation, commission, consulate or trade representative of foreign state Entire amount Where the remuneration is received as trade commissioner or other official in India or a member of staff, this exemption would be available only if remuneration of corresponding officials of the government resident for similar purpose is exempt in the other country. The remuneration received shall not be allowed if the member of staff is engaged in any business or profession or employment in India otherwise as a member of such staff 10(6)(vi) An individual not being a citizen of India Remuneration received or due as an employee of foreign enterprises, for services rendered during his stay in India Entire amount The foreign enterprises is not engaged in trade or business in India His stay in India does not exceed ninety days in such previous year Such remuneration is not deducted from the income of such employer 10(6)(viii) An individual being non-resident and not a citizen of India Salaries for services rendered on a foreign ship Entire amount The total stay of such person should not in aggregate exceed ninety days in such previous year 10(6)(xi) An individual not being a citizen of India Remuneration received as an employee of Government of foreign state during his stay in India Entire amount The remuneration is received in connection with his training in any establishment or office owned or controlled or financed by government of India or any state government as specified or its subsidiary. 10(6A) Any foreign company Tax paid on income earned by way of Royalty or fees for technical services by the government or Indian concern Entire amount of such tax paid by government or Indian Concern. The income is received from Government or Indian concern pursuant to any agreement The agreement should be in accordance with industrial policy if it relates to matters referred in such policy or else it should be approved by Central Government the agreement should be entered into between 1.4.1976 to 31.05.2002 10(6B) Non-resident (not a company) or a foreign company Tax paid on income other than salary, Royalty or fees for technical services by government or Indian concern Entire amount of such tax paid by Government or Indian concern The income is received from Government or Indian concern pursuant to any agreement entered into before 1-6-2002 between Central Government and foreign state or an international organization The tax is payable by government or Indian concern according to such agreement 10(6BB) Government of foreign state or foreign enterprise Tax paid on income derived from leasing of aircraft or aircraft engine as per agreement approved by central government Entire tax paid by the government or Indian company The income is derived from leasing of aircraft or engine as per approved agreement and not from provisions of spares, facilities or services in connection with operation of the same. The agreement must be entered into after 31.3.1997 and before 1-4-1999 or after 31.3.2007 The expression foreign enterprise means a person who is non-resident 10(6C) Foreign company as notified by central government Royalty or fees for technical services for projects connected with security of India Entire amount The amount should be received pursuant to agreement with government of that state in relation to providing services in India or outside India Such services should be for projects connected with security of India. 10(7) A citizen of India Amount paid or allowed by the government outside India Entire amount The amount is paid by way of allowances or perquisites outside India for services provided outside India. 10(8) An Individual Remuneration for duties assigned in India and any other income accrues or arises outside India Entire amount The duties are assigned in connection with co-operative technical assistance programmes or projects as per agreement between central government and foreign state. The remuneration is paid by foreign state The terms of such agreement provide for exemption under this clause Any other income which accrues or arises outside India is subjected to any income or social security tax in other state 10(8A) An individual who is either not a citizen of India or is not ordinarily resident in India or Any other person who is not a resident of India Any remuneration or fees received under a technical grant assistance agreement, from, funds made available to international agency Any other income which does not accrue or arise in India Entire amount The fees or remuneration is paid for technical services rendered in India under the technical assistance programme or project The sum is paid directly or indirectly out of funds made available to international organization as per agreement between such organisation & government of foreign state. The technical assistance provided is in accordance with such agreement Any agreement for appointment of consultant shall have to be approved by the authorities prescribed. Any other income which accrues or arises outside India is subjected to any income or social security tax in other state 10(8B) An individual who is either not a citizen of India or is not ordinarily resident in India. The remuneration received for services rendered in India from consultant referred to in sec 10(8A) and Any other income which does not accrue or arise in India Entire amount The individual should be an employee of consultant referred to in clause 8A above His contract of service is approved by the prescribed authority. The remuneration is received in connection with technical assistance programme referred to in clause 8A Any other income which accrues or arises outside India is subjected to any income or social security tax in other state. The prescribed authority for clause 8A & 8B are The Additional Secretary, Department of Economic Affairs in Ministry of Finance, Government of India, in concurrence with members CBDT 10 (9) An individual who is a member of the family of person referred to in section 10(8), 10(8A) & 10 (8B). Any income accrues or arises outside India Entire amount Any such income which accrues or arises outside India is subjected to any income or social security tax to the Govt. of foreign state. 10 (10) An individual i. Death cum Retirement Gratuity received by government servants ii. Gratuity received under Payment of Gratuity Act,1972 iii. Any other Gratuity received on Retirement, Termination of service & Death As per conditions and subject to maximum of Rs.10 Lakhs For Conditions refer Salary section. 10 (10A) An individual Payment in commutation of Pension received from Government/ LIC fund u/s 10(23AAB) As per conditions & subject to certain limits For Conditions refer Salary section 10 (10AA) An individual Leave Encashment on Retirement As per conditions & subject to 10 months salary with maximum limit of Rs.3 lakhs For Conditions refer Salary section 10 (10B) An individual Compensation/award received at the time of his retrenchment An amount calculated as per section 25F(b) of the Industrial Dispute Act 1947 or Rs. 5,00,000/-whichever is lower. In special case any amount received as per any scheme approved by the Government The compensation received on retrenchment would include Amount received at the time of the closing down of the undertaking. Amount received at the time of transfer ownership of an undertaking subjective to condition (refer salary section). In special cases looking to the need for special protection to the workmen the government may approve the scheme for compensation to be paid to workmen which will be exempt from tax paid as per such scheme 10 (10BB) Any person Any payment received under Bhopal Gas Leak Disaster (Processing of Claims Act), 1985 Entire amount In case if the assessee is allowed deductions under the IT Act for any payment in connection with any loss or damage caused by such disaster, the same shall not be allowed under this clause. 10(10BC) Any individual or his legal heirs Any compensation received from state or central government or local authority on account of any disaster Entire amount In case if the assessee is allowed deductions under the IT Act for any payment in connection with any loss or damage caused by such disaster, the same shall not be allowed under this clause. The expression “disaster” shall have a meaning as defined under section 2(d) of Disaster Management Act, 2005. 10 (10C) Individual employee Amount received on voluntary retirement as an employee from specified employers Amount received as per scheme not exceeding Rs.5,00,000/- The scheme of voluntary retirement should be framed in accordance with guidelines prescribed (Rule 2BA) Once the exemption is allowed under this clause in any assessment year, the same shall not be allowed in any other assessment year From A.Y. 2010-11 if the assessee has been allowed relief u/s 89 for such payment in any assessment year, the exemption shall not be allowed under this clause. 10(10CC) Individual employee Tax on income derived as perquisite other than monetary payment Entire amount of such tax The perquisite shall not be provided as monetary payment as referred in section 17(2) Tax payment can be made by the employer irrespective of any restriction specified in the Companies Act. 10(10D) An individual Amount received under life insurance policy including any bonus allowed on such policy Entire amount The following amount shall not be allowed as exemption under this clause Amount received u/s 80DD(3) or 80DDA(3) W.e.f. 01.04.2013 Amount received under keyman insurance policy whether or not the same has been assigned to any person during its continuance. Amount received from any policy issued after 1.4.2003 but before 31.3.2012 where premium in any year of term of policy exceeds twenty percent of capital sum insured (not to apply in case amount is received on death of a person) Amount received from any policy issued on or after 1.4.2012 where premium in any year of term of policy exceeds ten percent of capital sum insured Any amount received by a person from any policy issued on or after 01.4.2013 in case of person suffering from severe disability as specified in Section 80U or severe disease as specified in rule made under Section 80DDB where the premium in any year of term of policy exceeds fifteen percent of capital sum insured Actual Capital sum insured shall be considered giving effect to explanation to section 80C(3) or 88(2A) and w.e.f AY 2013-14 explanation to sub sec. 3A of 80C. 10(11) An individual Amount received from provident funds Entire amount The payment is received from the funds Either to which Provident fund Act, 1925 applies or Any notified provident funds set up by central government. (Notification No. SO-2430 dt.2.7.1968) 10(12) An individual employee participating in recognized provident fund Accumulated balance due and payable under recognized provident fund Amount as provided in Rule 8 of part A of fourth schedule The employee has rendered services for continuous period of five years, except in cases where his services are terminated due to ill health, discontinuation of employer’s business or other cause beyond his control Where he takes other employment, the amount should be transferred to recognized P F account maintained by other employer (in such cases period of his earlier employment would be counted for continuous period of five years) The part A of fourth schedule does not apply to Provident funds Act, 1925 10(13) An individual Any payment received from approved Superannuation Fund Entire amount The payment of superannuation fund is made On death of beneficiary In lieu of or commutation of annuity on retirement at or after specified age Or he being incapacitated before such retirement As refund of contribution on death of beneficiary. As a refund of contribution on leaving service, to the extent payment does not exceed contribution and interest thereon prior to commencement of IT Act,1961 10(13A) An individual employee House Rent allowance As per rule 2A For details Refer salary section 10(14) An individual Special allowance granted to meet expenses incurred in performance of duties As per Rule 2BB For details Refer salary section 10(15) (i) All assessees Interest, premium on redemption or other payment on such securities, Bonds, certificates, as notified by government Entire amount Notifications issued under this clauses are SO 607(E), dt. 9-6-1989 SO653(E) dt. 31.8.1992 SO 844(E) dt. 21-9-1998 SO 742(E) dt. 27.6.2003 SO 1114(E) dt. 10-8-2005 281 / 2004/ F No. 178/20/2004 dt. 18-11-2004 10 (15)(iib) Individual or HUF Interest on notified capital investment bond Entire amount No Bond shall be notified after 1-6-2002. Notification issued under this clause SO 413(E) Dt. 11-6-1982 10(15)(iic) Individual or HUF Interest on notified relief Bonds Entire amount Notification issued under this clause F 4(9) W&M/2003 dt. 13.3.2003 F 4(9) W&M/2003 dt. 9-7-2004 F 4(5) W&M/2002(i) dt. 28.2.2003 F 4(13) W&M/2002 dt. 28.2.2003 10(15)(iid) Individual non-resident Indian or being nominee or survivor of such non resident or donee to whom such bond are gifted by such non resident Interest on notified Bonds Entire amount Person receiving such bonds as nominee, or survivor or gift from such NRI is also entitled to benefit under this clause. The NRI should invest in the bond in foreign exchange and on maturity the amount shall not be entitled to be repatriated Benefit would not be withdrawn if the NRI becomes resident of India. Where the bond is encashed before maturity exemption would not be allowed for said previous year Government shall not notify any such bonds after 1-6-2002 10(15)(vi) All assesses Interest on notified gold deposit bond Entire amount Gold deposit bonds issued under Gold deposit scheme 1999 10(15)(vii) All assesses Interest on Bonds Entire amount Bonds issued by local authority or state pooled finance entity as specified by the central govt. 10(15)(viii) Person who is non- resident or not ordinary resident Interest on offshore Banking units Entire amount Deposits made on after 1-4-2005 shall be eligible for exemption. Deposit is made in offshore banking unit as defined in section 2(u) of SEZ Act, 2005 10 (15A) Government of a foreign state or foreign enterprise Income derived from leasing of aircraft or aircraft engine Entire amount Income is received from Indian company engaged in operation of aircraft payment made for spares, facilities or services in connection of leasing is not allowed as exemption under this clause This clause shall not apply to any agreement of such lease entered into between 1-4-1997 and 31.3.1999 or after 1-4-2007. 10(16) An individual Scholarship Entire amount Scholarship is granted to meet cost of education. The term scholarship may include certain allowances granted to the persons for the purpose of specified research 10(17) A member of parliament or state legislature or any committee formed thereof Daily allowances or constituency allowance Entire amount Following allowances are exempt under this clause Daily allowance to Member of parliament, member of state legislature or any committee thereof Amount received by member of parliament under Constituency Allowance Rules,1986 Constituency allowance received by member of state legislature under any Rules made by the state legislature 10(17A) Any assessee Award or Reward received in cash or in kind Entire amount Award received should be given in public interest by Central or state government or any other body approved by central government Reward for such purpose as approved by the central govt. in public interest given by central and state government 10(18) Any eligible Central or state government employee or his family member as the case may be. Pension received or family pension received by the family member as the case may be Entire amount The eligible employee has been awarded Param Vir Chakra, or Maha Vir Chakra, or Vir Chakra or any other notified gallantry awards by central government 10(19) Widow, children or nominated heir of member of army Family pension received Entire amount The member of armed force or paramilitary force should have died in the course of operational duty under prescribed conditions and circumstances. 10(19A) Any Ruler (individual) Annual value of any palace/s in occupation of such ruler Entire amount The annual value of such palace/s was exempt from income tax before the commencement of constitution (Twenty sixth Amendment) Act, 1971 on account of provisions of merged states (Taxation concessions) order,1949 or Part B states (Taxation Concessions) order,1950 or Jammu and Kashmir (Taxation Concessions) order, 1958. 10(20) Income of panchayat, municipality, municipal committee, district Board or cantonment board Income from house property, capital gains, income from trade or business or income from other sources Entire amount Income from trade or business should accrue from supply of commodity or services other than water and electricity within its own area. or From supply of water or electricity within or outside its jurisdictional area 10(21) Any Research Association Any income Entire amount The research Association should be approved for the purpose of clause (ii) [or clause (iii)] of sub-section (1) of Section 35 It applies or accumulates the income wholly and exclusively for its stated purpose Provisions of section 11(2) and 11(3) shall apply with such modification as specified If the central government is satisfied that various conditions laid down are not satisfied it may withdraw the exemption after giving opportunity of being heard to such association. 10(22B) Any notified news agency Any income Entire income The news agency is set up solely for collection and distribution of news and applies its income or accumulation for collection or distribution of news as such. It does not distribute its income to its members in any manner The government notification at any one time shall have effect, not exceeding three years, as may be specified The government may after giving opportunity to agency, rescind such notification if it, finds that the agency does not adhere to the specified conditions. 10(23A) An association or institution set up in India for specified professions Any income other than Income from house property Interest or dividend from investment Income from rendering specified services Entire income The association should be approved by the central government The notified institution should apply or accumulated income for the purpose for which it is established The government may after giving opportunity to such institution, withdraw the approval if it finds that such institution does not adhere to the specified conditions. 10(23AA) Any person Any income Entire amount Income is received on behalf of Regimental fund or non Public fund, established by armed force for welfare of, its member or his dependent. 10(23AAA) Any person Any income Entire amount Income is received on behalf of fund established for notified purpose by Board for welfare of employees or their dependents. The fund applies or accumulates its income exclusively for the purpose for which it is established. The fund shall invest its income, contribution or other sum as specified u/s 11(5) of the Act. The fund is approved as per rule 16C by commissioner who may approve such fund for any period not exceeding three years. 10(23AAB) Any fund setup by LIC or other insurer Any income of the fund under a pension scheme Entire amount The fund is set up after 1-8-1996 by LIC or other insurer for pension scheme to which contribution is made by any person to receive pension from such fund The fund is approved by Controller of insurance or other authority established under Insurance Regulatory and Development Authority Act, 1999. 10(23B) An institution constituted as Society or public charitable trust Any income Entire amount The institution is established solely for development of Khadi and Village industries The same is approved by Khadi and Village Industries Commission, who may grant approval for any period not exceeding three years The institution shall apply or accumulate its income solely for development of khadi and Village industries. The commission may after giving opportunity to such institution, withdraw the approval if it finds that such institution does not adhere to the specified conditions. 10(23BB) Authority established under state or provincial Act for development of Khadi and village industries Any income Entire amount Khadi and Village Industries shall have meaning assigned in Khadi and Village Industries Commission Act, 1956 10(23BBA) Authority or body established or appointed under central, state or Provincial Acts Any income Entire amount The authority is established to provide administration of public religious or charitable trusts, endowments (Temples, Maths, wakfs, synagogues etc.), societies for religious or charitable purpose formed under the applicable laws. The provisions of this section does not deem to apply to income of other trusts, endowments or societies. 10(23BBB) European Economic community Interest, dividend, capital gains Entire income The income is earned out of investments made under notified schemes by central government. European Economic community means European Economic community established by the Treaty of Rome of 25th March, 1957. 10(23BBC) SAARC Fund for regional projects Any income Entire amount The fund is set up by Colombo Declaration issued on 21-12-1991 for regional projects 10(23BBE) Insurance regulatory and Development Authority Any income Entire amount The authority is established under section 3(1) of Insurance Regulatory and Development Authority Act, 1999. 10(23BBG) Central Electricity Regulatory Commission Any income Entire amount The commission is constituted under section 76(1) of the Electricity Act, 2003 10(23BBH) Income of Prasar Bharti (Broadcasting corporation of India) w.e.f AY 2013-14. Any income Entire amount The said Prasar Bharti is established under sub sec 1 of sec 3 of Prasar Bharti (Broadcasting corporation of India) Act, 1990. 10(23C) Income received by any person on behalf of following entities P.M’s National relief fund. P.M’s fund for promotion of folk art P.M’s Aid to student fund National foundation for communal harmony University or other Educational Institution financed by the Government Hospital or other institution wholly or substantially financed by Central govt. for treatment of specified illness and established for philanthropic purpose only. University or educational institution set up for education purpose and not for profit and whose gross receipt does not exceed Rs.1 crore. Hospital or other institution set up for philanthropic purpose for treatment of specified illness and whose gross receipts do not exceed Rs.1 crore. Other charitable trusts, universities, hospitals, charitable organization approved by specified authority Any income Entire income The fund, trust, university, hospitals, charitable organization requiring approvals shall make an application in prescribed form to prescribed authority for the grant of or continuation of exemption. Exemption shall not be available for anonymous donations referred to in section 115BC. The provisions of section 11,12 or 12AA shall also apply to various institutions referred to herein. The institutions where their income exceeds the maximum amount chargeable to tax, shall get their accounts audited. With retrospective effect from AY 09-10 In case of other charitable trusts, universities, hospitals, charitable organization approved by specified authority in which case 1st proviso to Sec. 2(15) applies exemption under this sec. shall not be allowed. W.e.f. A.Y. 2015 – 16 If the Government grant to a university or other educational institutions, hospital during the P.Y. exceeds a certain percentage of the total receipts (including voluntary contributions) then such university or other educational institutions, hospital shall be considered as being substantially financed by the government. W.e.f. A.Y. 2015 – 16 where any income of an institution or a Trust or hospital or other medical institution approved by the prescribed authority is required to apply or accumulate its income then in that case the amount of income to be applied would be determined without deduction or allowance of depreciation or otherwise. In respect of any capital asset for which deduction has already been claimed as application of such income. 10(23D) Specified Mutual funds Any income Entire amount The mutual fund is either registered under SEBI or is set up by public sector Bank, public sector financial institution or such fund as approved by RBI and shall be subjected to such conditions as notified. 10(23DA) Securitisation Trust w.e.f. 01.04.2014 Any income from the activity of securitisation Entire amount Securitisation shall have meaning assigned to it in SEBI Regulations, 2008 or under the guidelines of securitization of standard assets issued by RBI. Securitisation trust shall have meaning assigned to it in Explanation below Section 115TC 10(23EA) Investor protection fund set up by recognized stock exchange Any income by way of contribution received from recognized stock exchange or its member Entire amount The fund is set up by recognized stock exchanges in India either jointly or separately as may be notified by Central Government The amount which is standing in credit and not subjected to tax under this provision if, is shared with the recognized stock exchange shall be chargeable to tax in the year in which it is shared. 10(23EC) Investor protection fund set up by commodity exchange Any income by way of contribution received from commodity exchange or its member Entire amount The fund is set up by commodity exchanges in India either jointly or separately as may be notified by central government The amount which is standing in credit and not subjected to tax under this provision is shared with the recognized stock exchange, shall be chargeable to tax in the year in which it is shared. 10(23ED) Depository of Investor Protection Fund set up by the Depository (applicable w.e.f 01.04.2014 ) Any income, by way of contribution received from such Depository of Investor Protection Fund Entire amount The Depository is set up in accordance with the regulations as may be notified by central government The amount which is standing in credit and not subjected to tax under this provision is shared with the depository, shall be chargeable to tax in the year in which it is shared 10(23FB) Venture capital fund or venture capital company Any income from investment in venture capital undertaking Entire amount venture capital company means the one which has been granted certificate of registration prior to 21st, may, 2012 under SEBI Act and Rules and fulfills notified and approved specified conditions or which has been granted certificate of registration as venture capital fund as sub category 1 of category 1 alternate investment fund by SEBI venture capital fund means such fund Operating under trust deed or as venture capital scheme made by UTI and has been granted certificate of registration under SEBI Act and Rules and fulfills notified and approved specified conditions. Venture capital undertaking means Domestic company whose shares are not listed in recognized stock exchange and is engaged in business of specified activities W e f AY 2013-14 Venture capital undertaking shall mean the one, as referred to in SEBI (Venture Capital Funds) Regulations, 1996. As per Finance Act, 2013 the pass through status available as per Section 115U to venture capital company and venture capital fund registered prior to 21st May, 2012 shall be continued and similar benefit shall also be provided to venture capital undertaking. 10(23FC) Business Trust where the trust has controlling interest or specified percentage of share holding or interest in any Indian company (SPV) (Applicable from A.Y. 2015-16) Interest income from SPV Entire Amount SPV means an Indian company in which business trust holds controlling interest or specified percentage of share holding or interest. 10(23FD) Unit holder of a business trust (Applicable from A.Y. 2015-16 ) Distributed income from business trust The amount distributed, not being that proportion of income which is of same nature as referred to in Section 10(23FC) Special provisions for distribution of income by business trust have been introduced in Section 115UA w.e.f. A.Y. 2015-16 10(24) Registered union or Association of such unions Income from house property or income from other sources Entire income The union is registered under Trade union Act,1926 It is formed with the object of regulating relations between workmen and employers or between workmen and workmen 10(25) Provident fund, Superannuation fund, Gratuity fund, coal Mines P.F., employees PF. Interest on securities and capital gains on sale of such securities held by provident fund to which Provident fund Act, 1925 applies. In any other case any income Entire amount Any income received by trustees or board of trustees of following funds are fully exempt Recognized Provident fund Approved superannuation fund Approved gratuity fund Coal Mines provident fund and miscellaneous provisions Act, 1948 Employees provident fund and miscellaneous provisions Act, 1952 10(25A) Employees state insurance fund Any income Entire income E S I C fund is set up under Employees State Insurance Act, 1948. 10(26) Member of schedule Tribes residing in specified areas Any income from source in that area Interest and dividend on securities Entire income The schedule tribe is defined under article 366(25) of the constitution. 10(26AAA) A Sikkimese individual Any income accrues from source in Sikkim, or Interest or dividend on securities Entire income The expression Sikkimese has a meaning as given in explanation to this section. The income of Sikkimese woman marrying to non-sikkimess persons after 1-4-2008 shall not be entitled to exemption under this clause 10(26AAB) Agricultural produce market committee or Board Any income Entire income The APMC or board is constituted under any law for the purpose of regulating marketing of agricultural produce 10(26B) Government corporation or any association, body, institution wholly financed by government Any income Entire income The corporation is established by a central state or provincial Act or any association, body, institution wholly financed by the government and is formed with the object to promote interest of schedule caste, schedule Tribe or backward classes. 10(26BB) Government corporation formed by state or central government Any income Entire income Such corporation is established to promote the interest of the notified minority community 10(26BBB) corporation formed by state or central or provincial Act Any income Entire income Such corporation is formed for the welfare and upliftment of ex-servicemen being citizens of India and served for armed force of union or Indian state before the commencement of constitution of India. The term ex-servicemen is defined in explanation to this section 10(27) A co-operative society Any income Entire income Such co-operative societies are formed for promoting interest of schedule caste or schedule tribes Members of such societies shall consist only of other societies formed for similar purpose and Funds of the society is provided by the government or such other society 10(29A) Various Boards or authorities established under various Acts Any income Entire income Income of various boards like Tea Board, Coffee Board, Rubber Board, Tobacco Board, spices Board, Coir Board, Marine products export development authority, and agricultural and processed food product export authority formed under various laws as applicable to such Boards 10(30) Any assessee engaged in growing and manufacturing Tea in India Subsidy received from Tea Board. Entire amount so received Subsidy is received for re-plantation or replacement of tea bushes or for rejuvenation or consolidation of area used for cultivation of tea under scheme notified by government. The assessee shall furnish certificate of subsidy so received to the income tax officer along with return of income 10(31) Any assessee carrying on business of growing and manufacturing rubber, coffee, cardamom or other commodities notified by central Govt. Subsidy received from concerned Board Entire amount so received Subsidy is received for re-plantation or replacement of respective commodity bushes or for rejuvenation or consolidation of area used for cultivation of such commodity under scheme notified by government. The assessee shall furnish certificate of subsidy so received to the income tax officer along with return of income 10(32) An assessee referred to in section 64(1A) Income included u/s 64(1A) Income included in assessee’s income u/s 64(1A) to the extent it does not exceed Rs.1500/- for each minor child. Any income of minor child other than specially exempt are included in the income of the parent and any such income included in the hands of the parent shall be excluded to the extent of Rs.1500./- for each child 10(33) Any assessee Income arising from transfer of units held as capital assets of Unit Scheme 1964. Entire income The transfer of such unit is made after 1-4-2002 and units are referred to in schedule I to the unit Trust of India (Transfer of undertaking and Repeal Act 2002) 10(34) Any assessee Dividend Entire amount Dividend exempt under this provision is as referred to in section 115-O 10(34A) Any assessee being a shareholder of a company (w.e.f. A.Y. 2014-15) Amount received on buy back of shares of unlisted company Entire amount The company buying back the shares is the one referred to in Section 115QA 10(35) Any assessee Income received in respect of Units of specified mutual fund, specified undertaking, specified Company, other than on transfer of such units Entire income Income on transfer of such units are not exempt under this provision 10(35A) Any assessee being an investor of a securitization trust Distributed income as referred to in Section 115TA Entire income The expressions ‘investor’ and ‘securitisation trust’ shall have the same meaning as assigned to them in explanation below Section 115TC 10(36) Any assessee Long term capital gains on transfer of eligible equity shares Entire amount The transfer took place after 1.3.2003 but before 1.3.2004. Transactions are entered into on a recognized stock exchange Eligible equity shares mean share of company being part of BSE-500 as on 1.3.2003 or shares of company allotted in public issue on or after 31.3.2003 and the company is listed on recognized stock exchange before 1.3.2004 10(37) Individual or HUF Capital gains arising out of sale of agricultural land Entire gain The land is situated in area as referred to in section 2(14)(iiia) or 2(14)(iiib) Such land was used in previous two years from the date of transfer for agricultural purpose by the assessee or his parents Transfer is by way of compulsory acquisition or consideration or enhanced consideration of which is approved by RBI or Central Government Such income arises on or after 1.4.2004 10(38) Any assessee Long term capital gains on sale of equity shares or units of equity oriented fund “or a unit of a businesss trust” (w.e.f. A.Y. 2015 – 16) Entire amount The gains arise from transfer takes place after chapter VII of finance Act (No.2) Act, 2004 came into existence Such transactions are chargeable to STT The income will be included while computing Book profit for the purpose of section 115JB. equity oriented fund means fund whose more than 65% of investible fund is invested by way of equity shares in domestic company fund is set up under scheme of mutual fund specified u/s 10(23D) Where percentage of equity shareholding of the fund will be computed with reference to the annual average of the monthly averages of opening and closing figures. W.e.f. A.Y. 2015 – 16 the provisions of this clause are not applicable in respect of any income arising from transfer of units of business trust which were acquired in consideration of transfer u/s. 47 (xvii). 10(39) Notified persons Specified income out of international sporting events held in India Income to the Extent notified by Central Government Income out of international sporting event is exempt in the hands of notified persons if such events are approved by international regulating body of such event events are participated by more than two countries event is notified by Central Government 10(40) Any Subsidiary company Income received from Indian holding company Entire amount The income is received by way of grant or other income from Indian holding company engaged in business of generation or transmission or distribution of power or for the revival / reconstruction of existing power generating business Provided reconstruction or revival of any existing business of power generation is by way of transfer of such business to the Indian Company notified u/s 80IA (4)(v)(a). 10(42) Notified body or authority Specified income Entire amount Body or Authority is constituted under a treaty or agreement signed by central government with two or more countries or convention. It is constituted not for profit The authority or body and income exempt shall be notified by the Central government 10(43) An individual Amount received as loan Entire amount The loan received either in lump sum or in installments should be in transaction of reverse mortgage as referred to in section 47(xvi) 10(44) New pension system trust Any income received for and on behalf of such trust Entire amount Such pension system trust, as is established on 27-2-2008 under Indian Trust Act, 1882. 10(45) Chairman or member (including retired one) of union public service commission Notified allowance or perquisites Entire amount Any notified allowance or perquisites paid to such persons 10(46) Any body, authority, Board or Trust or Commission Specified income Specified amount Such body, authority etc should be formed under Central, State or Provincial Act or by the central or state government. Such body should be established for regulating or administrating activities for benefit of general public. The nature and the extent of income exempt, shall be specified by the Central Government 10(47) Infrastructure debt fund Any income Entire income The fund is set up as per prescribed guidelines The notification is issued by the government in this regard. 10(48) Foreign Company w.e.f. A.Y. 2012-13 Income received on account of sale of crude oil to any person in India W.e.f A.Y. 2014-15 following clause is inserted : Income received on account of sale of crude oil, any other goods or rendering of services as may be notified by Central Government in this behalf Entire Income received in India in Indian Currency Income is received in pursuant to an agreement or arrangement entered into by Central Government or approved by Central Government Foreign company and the agreement are notified by Central Government Foreign company is not engaged in any other activity, in India. 10(49) National Financial Holdings Company Limited Any income of National Financial Holdings Company Limited for any previous year related to an assessment year beginning prior to 01.04.2014 Entire income The company is set up by the Central Government Back to Top