Incomes Which Do Not Form Part of Total Income

SCHEDULE II [See section 11] INCOME NOT TO BE INCLUDED IN TOTAL INCOME In computing the total income of a person for a tax year, the income mentioned in column B of the Table below shall not be included, subject to fulfilment of the conditions mentioned in column C of the said Table, and the expressions used in columns B and C of the said Table, shall have the meaning respectively assigned to them in the Notes below the said Table: TABLE Sl. Income not to be Conditions No. included in total income A B C 1. Agricultural income. Nil. 2. Any sum received un- (a) The insurance policies, issued during the der a life insurance period mentioned in column B of the table policy, including the below, except where such sum is received on sum allocated by way the death of a person, under a life Insurance of bonus on such policy. policy issued by, shall fulfil the conditions mentioned in column C thereof: Sl. Income not to be Conditions No. included in total income A B C Sl. Period of issue of Conditions No. insurance policy A B C 1. 1st April, 2003 to Premium to sum assured 31st March, 2012. ratio is ≤ 20%. 2. 1st April, 2012 to Premium to sum assured 31st March, 2013. ratio is ≤ 10%. 3. 1st April, 2013 Premium to sum assured to 31st January, ratio is ≤ 15% for special 2021. policy; and ≤ 10% for other policies. 4. 1st February, 2021 Unit linked insurance to 31st March, policy:— 2023. (A) premium to sum as- sured ratio is ≤ 15% for special policy; and ≤ 10% for other policies; and (B) aggregate of pre- mium for all such policies (in any of the tax years during the term of all of such policies) is ≤ ` 2,50,000. Other than unit linked insurance policy:— Premium to sum assured ratio is ≤ 15% for special policy; and ≤ 10% for other policies. 5. On or after the 1st Unit linked insurance April, 2023. policy:— (a) premium to sum assured ratio is ≤ 15% for special policy; and ≤ 10% for other policies; and Sl. Income not to be Conditions No. included in total income A B C Sl. Period of issue of Conditions No. insurance policy A B C (b) aggregate of pre- mium for all such policies (in any of the tax years dur- ing the term of all of such policies) < ` 2,50,000. Other than Unit linked insurance policy:— (i) premium to sum assured ratio is < 15% for special policy; and < 10% for other policies; and (ii) aggregate of pre- mium for all such policies (in any of the tax years dur- ing the term of all of such policies) is < ` 5,00,000; (b) the conditions of aggregate premium of ` 2,50,000 and ` 5,00,000 mentioned in clause (a) shall not apply to any sum received under a life Insurance policy issued on or after the 1st April, 2025, by the International Financial Services Centre Insurance Office; (c) the following sums shall not be eligible for exclusion from total income:–– (i) any sum received under section 127(4); and (ii) any sum received under a Keyman insurance policy. Sl. Income not to be Conditions No. included in total income A B C Note.—For removal of difficulties, the Board may issue guidelines with the previous approval of the Central Government, which shall be binding on the income-tax authorities and the assessee and every guideline issued by the Board under this clause shall be laid before each House of Parliament. 3. Any payment from (a) The income by way of interest accrued during a provident fund to the tax year shall not be eligible for exclusion which the Provident from total income where,–– Funds Act, 1925 (19 of (i) it is attributable to the contribution 1925) applies, or from (including aggregate thereof) made by any other provident that person on or after the 1st April, fund set up by the 2021; Central Government and notified by it in (ii) such contribution exceeds–– this behalf. (A) ` 5,00,000 in a tax year in such fund where no contribution is made by the employer of such person; (B) ` 2,50,000 in other cases; and (b) the amount of income not to be excluded from total income as referred to in clause (a) shall be computed in such manner, as may be prescribed. 4. The accumulated bal- (a) The income by way of interest accrued during ance due and becoming the tax year shall not be eligible for exclusion payable to an employee from total income where,–– participating in a rec- (i) it is attributable to contribution (in- ognised provident fund cluding aggregate thereof) made by that to the extent provided person on or after the 1st April, 2021; in paragraph 8 of Part and A of the Schedule XI. (ii) such contribution exceeds–– (A) ` 5,00,000 in a financial year in such fund where no contribution is made by the employer of such person; or (B) ` 2,50,000 in other cases; and (b) the amount of income not to be excluded from total income as referred to in clause (a) shall be computed in such manner as may be prescribed. Sl. Income not to be Conditions No. included in total income A B C 5. Any payment from any Nil. account opened as per the Sukanya Samrid- dhi Account Scheme, 2019 made under the Government Savings Promotion Act, 1873 (5 of 1873). 6. Any payment from the (a) Such payment is on closure of account of the National Pension Sys- assessee or on his opting out of the pension tem Trust. scheme referred to in section 124; and (b) the said payment does not exceed 60% of the total amount payable at the time of such closure or his opting out of the scheme. 7. Any payment from the Nil. Agniveer Corpus Fund to a person enrolled under the Agnipath Scheme or to his nom- inee. 8. Any payment from an Such payment is made— approved superannua- (a) on the death of a beneficiary; tion fund. (b) to an employee in lieu of or in commutation of an annuity on his retirement at or after a specified age or on his becoming incapaci- tated prior to such retirement; (c) by way of refund of contributions on the death of a beneficiary; (d) by way of refund of contributions to an em- ployee on his leaving the service in connection with which the fund is established otherwise than by retirement at or after a specified age or on his becoming incapacitated prior to such retirement, to the extent to which such payment does not exceed the contributions made prior to the commencement of this Act and any interest thereon; or (e) by way of transfer to the account of the employee under a pension scheme referred to in section 124 and notified by the Central Government in this behalf. 9 Scholarships. Such scholarship is granted to meet the cost of education. Sl. Income not to be Conditions No. included in total income A B C 10. Any payment made, Such payment is made–– whether in cash or in (a) in pursuance of any award instituted in the kind for any award or public interest by the Central Government reward. or any State Government or instituted by any other body and approved by the Central Government in this behalf; or (b) as a reward by the Central Government or any State Government for such purposes as may be approved by the Central Government in this behalf in public interest. 11. Income by way of in- Such certificates and deposits are notified by the terest, premium on Central Government, subject to such conditions redemption or other and limits as specified therein. payment on such secu- rities, bonds, annuity certificates, savings certificates, other cer- tificates issued by the Central Government and deposits. 12. Interest on Gold De- Nil. posit Bonds issued under the Gold De- posit Scheme, 1999 or deposit certificates issued under the Gold Monetisation Scheme, 2015 notified by the Central Government. 13. Interest on bonds is- As specified by the Central Government, by no- sued by a local author- tification. ity or by a State Pooled Finance Entity. 14. Any income arising The transfer of such asset takes place on or after from the transfer of the 1st April, 2002. a capital asset, be- ing a unit of the Unit Scheme, 1964 referred to in Schedule I to the Unit Trust of India (Transfer of Undertak- ing and Repeal) Act, 2002 (58 of 2002). Sl. Income not to be Conditions No. included in total income A B C 15. Any payment from (a) such payment received at the time of his the National Pension superannuation or voluntary retirement or re- System Trust received tirement under rule 56(j) of the Fundamental by an assessee, who is Rules [which is not treated as penalty under a subscriber to the Uni- the Central Civil Services (Classification, fied Pension Scheme; Control and Appeal) Rules, 1965]; and (b) the said payment does not exceed 60% of the Individual corpus, as defined in notification number FX-1/3/2024-PR of the Depart- ment of Financial Services, dated the 24th January, 2025. 16. Any sum received as The said “lump sum amount” is as per clause (vi) “lump sum amount” of Para 2, of the Notification number FX-1/3/2024- from the National Pen- PR of the Department of Financial Services, dated sion System Trust by an the 24th January, 2025. assessee being a sub- scriber to the Unified Pension Scheme. 17. Any income covered Nil. under section 10(15) (iii) or (15)(iv)(c), (15) (iv)(d), (15)(iv)(e), (15) (iv)(f), (15)(iv)(g) or (15)(iv)(h) or (36) of the Income-tax Act, 1961 (43 of 1961), sub- ject to the conditions as provided therein. Note 1: For the purposes of Sl. No. 2,–– (a) “actual capital sum assured” shall have the meaning assigned to it in paragraph 2(2) of Schedule XV; (b) “International Financial Services Centre Insurance Office” shall have the same meaning as assigned to it* regulation 3(1)(k) of the International Financial Ser- vices Centre Authority (Registration of Insurance Business) Regulations, 2021, made under the International Financial Services Centres Authority Act, 2019 (50 of 2019); (c) “Keyman insurance policy” means a life insurance policy–– (i) taken by a person on the life of another person; (ii) such person is or was the employee of the first-mentioned person or is or was connected in any manner with the business of the first-mentioned person; and (iii) includes such policy which has been assigned to a person at any time during the term of the policy, with or without any consideration; (d) “premium to sum assured ratio” shall mean the highest percentage of annual premium payable to the actual capital sum assured, during the term of the policy; (e) “special policy” means any policy issued on life of any person, who is— (i) a person with disability or a person with severe disability as referred to in section 154; or (ii) suffering from disease or ailment as specified in the rules made under section 128; (f) “United Linked Insurance Policy” means a unit linked life insurance policy,–– (i) which has components of both investment and insurance; and (ii) is linked to a unit as defined in regulation 3(ee) of the Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019 made under the Insurance Regula- tory and Development Authority Act, 1999 (41 of 1999); Note 2: For the purposes of Sl. No. 7, the expression “Agniveer Corpus Fund” and “Agnipath Scheme” shall have the meanings respectively assigned to them in section 125. Note 3: For the purposes of Sl. No. 11, the expression “interest” includes hedging transaction charges on account of currency fluctuation. Note 4: For the purposes of Sl. No. 13, the expression “State Pooled Finance Entity” means such entity which is set up as per the guidelines for the Pooled Finance Development Scheme notified by the Central Government in the Ministry of Housing and Urban Affairs.

SCHEDULE III [See section 11] INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF ELIGIBLE PERSONS In computing the total income of a tax year of any eligible person mentioned in column C of the Table below, the income mentioned in column B of the said Table shall not be included, subject to the conditions mentioned in column D of the said Table, and the expressions used in columns B to D therein shall have the meanings respectively assigned to them in the Notes below the said Table: TABLE Sl. Income not to be Eligible persons Conditions No. included in total income A B C D 1. Any sum received by An individual who is (a) Such sum is not cov- a member from Hin- a member of a Hindu ered under the provi- du undivided family. undivided family. sions of section 99(3) and (4); and (b) such sum has been paid out of–– Sl. Income not to be Eligible persons Conditions No. included in total income A B C D (i) the income of the family; or (ii) the income of the estate belong- ing to the family, in the case of any impartible estate. 2. Any sum received by A person who is a part- The sum received as share a partner towards ner of a firm separately in profit is as per the prof- his share in the total assessed as such. it-sharing ratio provided in income of the firm. the partnership deed. 3. Any amount received Any individual or his No deduction of this amount or receivable from legal heir. was allowed earlier under the Central Govern- this Act on account of any ment or a State Gov- loss or damage caused by ernment or a local such disaster to such in- authority by way of dividual or his legal heir. compensation on ac- count of any disaster. 4. Any payment from (i) Any employee; or (a) Such payment is on the National Pension (ii) an assessee, be- partial withdrawal System Trust under ing the guardian made out of his ac- the pension scheme or parent of a count or the account referred to in section minor. of the minor, as the 124. case may be, as per the terms and conditions specified under the Pension Fund Regu- latory and Develop- ment Authority Act, 2013 (23 of 2013) and the regulations made thereunder; and (b) exclusion shall not exceed 25% of the amount of contribu- tions made by him. 5. Daily allowance re- Any person by reason Nil. ceived. of his membership of Parliament or of any Sl. Income not to be Eligible persons Conditions No. included in total income A B C D State Legislature or of any Committee there- of. 6. Any allowance re- Any person by reason Nil. ceived. of his membership of Parliament under the Members of Parlia- ment (Constituency Allowance) Rules, 1986 made under the Salary, Allowances and Pen- sion of Members of Parliament Act, 1954 (30 of 1954). 7. Any constituency Any person by reason Nil. allowance received. of his membership of any State Legislature under any State Act or rules made thereunder. 8. The value of any Any individual. (a) Such sum is received travel concession or by, or due to, such assistance. individual— (i) from his employ- er for himself and his family, in connection with his proceeding on leave to any place in India; (ii) from his employ- er or former em- ployer for himself and his family, in connection with his proceeding to any place in India after re- tirement from service or after the termination of his service; Sl. Income not to be Eligible persons Conditions No. included in total income A B C D (b) such sum is subject to such conditions as may be prescribed (including condi- tions as to number of journeys and the amount which shall be exempt per head); (c) the conditions in clause (b) shall have regard to the travel concession or assistance granted to the employees of the Central Government; and (d) the sum not included in the total income shall in no case exceed the amount of expenses actually incurred for the purpose of such travel. 9. Any allowances or A citizen of India. Such sum is paid or allowed perquisites paid or for rendering service outside allowed as such out- India. side India by the Government. 10. Income in the nature An employee, being an (a) Such perquisite is not of a perquisite. individual. provided for by way of monetary payment, within the meaning of section 17(1); and (b) the tax on such income actually paid by his em- ployer, at the option of the employer, on behalf of such employee. 11. Any special allow- Any assessee. (a) Such allowance is ance from employer. specifically granted to meet expenditure actually incurred on Sl. Income not to be Eligible persons Conditions No. included in total income A B C D payment of rent (by whatever name called) in respect of residential accommodation occu- pied by the assessee; (b) such allowance is to such extent as may be prescribed having regard to the area or place in which such ac- commodation is situat- ed and other relevant considerations; (c) the residential accom- modation occupied by the assessee is not owned by him; and (d) the assessee has actu- ally incurred expendi- ture on payment of rent (by whatever name called) in respect of the residential accom- modation occupied by him. 12. Any special allow- Any assessee. (a) Such allowance or ance or benefit to benefit is not in the the extent to which nature of a perquisite such expenses are within the meaning of actually incurred for section 17(1); and that purpose. (b) such allowance or benefit is specifically granted to meet ex- penses wholly, nec- essarily and exclu- sively incurred in the performance of the duties of an office or employment of profit, as may be prescribed. Sl. Income not to be Eligible persons Conditions No. included in total income A B C D 13. Any allowance. Any assessee. (a) Such allowance is granted to the asses- see,— (i) to meet his per- sonal expenses at the place where the duties of his office or place of employment of profit are ordi- narily performed by him or at the place where he ordinarily re- sides; or (ii) to compensate him for the in- creased cost of living, to the extent as may be prescribed; and (b) any allowance to remu- nerate or compensate for performing duties of a special nature relating to office or employment shall not be excluded from total income unless such allowance is related to the place of his posting or residence. 14. Pension received. An individual who has Nil. been in the service of the Central Govern- ment or State Gov- ernment and has been awarded “Param Vir Chakra” or “Maha Vir Chakra” or “Vir Chakra” or such other gallantry Sl. Income not to be Eligible persons Conditions No. included in total income A B C D award as the Central Government may, by notification, specify in this behalf. 15. Family pension re- Any member of the Nil. ceived. family of an individual referred against serial number 14. 16. Family pension re- Widow or children or The death of such member ceived. nominated heirs of a has occurred in the course member of the armed of operational duties in such forces (including para- circumstances and subject to military forces) of the such conditions, as may be Union. prescribed. 17. Any income inclu- In case of an individ- Exclusion of such income dible in the total in- ual referred to in that from the total income is to come under section sub-section. the extent such income does 99(1)(c). not exceed ` 1,500 in respect of each minor child whose income is so includible. 18. Any income charge- An individual or a Hin- (a) Such land is situated in able under the head du undivided family. any area referred to in “Capital gains” aris- section 2(22)(iii); ing from the transfer (b) such land, during the of agricultural land. period of two years immediately preced- ing the date of transfer, was being used for ag- ricultural purposes by such Hindu undivided family or individual or a parent of his; (c) such transfer is by way of compulsory acqui- sition under any law, or a transfer, the con- sideration for which is determined or ap- proved by the Central Government or the Reserve Bank of India; and Sl. Income not to be Eligible persons Conditions No. included in total income A B C D (d) such income has arisen from the compensa- tion or consideration for such transfer re- ceived by such assessee on or after the 1st April, 2004. 19. Any income which A member of a Sche- Nil. accrues or arises— duled Tribe,— (a) f r o m any (a) as defined in arti- source in the cle 366(25) of the areas or States Constitution; and mentioned in (b) residing in any column C; or area specified in (b) by way of div- Part I or II of the idend or inter- Table append- est on securi- ed to paragraph ties. 20 of the Sixth Schedule to the Constitution or in the States of Arunachal Pradesh, Mani- pur, Mizoram, Nagaland and Tripura or in the areas covered by notification No. TA D / R / 3 5 / 5 0 / 109, dated the 23rd February, 1951, issued by the Governor of Assam under the proviso to the said paragraph 20(3) [as it stood immediately before the com- mencement of Sl. Income not to be Eligible persons Conditions No. included in total income A B C D the North-East- ern Areas (Reor- ganisation) Act, 1971 (18 of 1971) or in the Union territory of Lada- kh]. 20. Any income which An individual, being a Nil. accrues or arises— Sikkimese. (a) f r o m any source in the State of Sik- kim; or (b) by way of div- idend or inter- est on securi- ties. 21. The amount of any An assessee who car- (a) Such scheme is for re- subsidy received ries on the business plantation or replace- from or through the of growing and manu- ment of tea bushes, concerned Board facturing tea, rubber, rubber plants, coffee under a scheme. coffee, cardamom or plants, cardamom such other commodi- plants or plants for ty in India as may be the growing of such notified by the Central other commodity or Government. for rejuvenation or consolidation of areas used for cultivation of tea, rubber, coffee, car- damom or such other commodity; (b) such scheme is notified by the Central Govern- ment; and (c) the assessee furnish- es to the Assessing Officer, along with his return of income for the tax year concerned or within such further Sl. Income not to be Eligible persons Conditions No. included in total income A B C D time as the Assessing Officer may allow, a certificate from the concerned Board, as to the amount of such subsidy paid to the assessee during the tax year. 22. The income which is Any local authority. Income from trade or busi- chargeable under the ness is eligible for exclusion head “Income from from total income if such house property”, income accrues or arises “Capital gains” or from the supply of— “Income from other (a) a commodity or ser- sources” or from a vice (not being water trade or business. or electricity) within its own jurisdictional area; or (b) water or electrici- ty within or outside its own jurisdictional area. 23. Any income of a re- A research association (a) Applies its income search association. for the time being ap- or accumulates it for proved for the purpose application, wholly of section 45(3)(a). and exclusively to the objects for which it is established; (b) invests its funds re- ceived in the forms or modes specified in section 350; (c) satisfies such condi- tions as may be pre- scribed; and (d) the procedure for with- drawal of approval granted shall be in such manner as may be prescribed. Sl. Income not to be Eligible persons Conditions No. included in total income A B C D 24. Any income (other An association or in- (a) The association or than income charge- stitution established institution applies its able under the head in India having as income, or accumu- “Income from house its object the control, lates it for application, property” or any supervision, regula- solely to the objects for income received tion or encouragement which it is established; for rendering any of the profession of, (b) the association or in- specific services law, medicine, accoun- stitution is for the time or income by way tancy, engineering or being approved by the of interest or divi- architecture or such Central Government dends derived from other profession as the by general or special its investments). Central Government order; and may, by notification (c) the procedure for with- specify in this behalf. drawal of approval granted shall be in such manner, as may be prescribed. 25. Any income attrib- An institution consti- (a) Such institution exists utable to the busi- tuted as a public chari- solely for the develop- ness of production, table trust or registered ment of khadi or village sale, or marketing, under the Societies industries or both, and of khadi or products Registration Act, 1860 not for the purposes of of village industries. (21 of 1860), or under profit; any other law corre- (b) such institution ap- sponding to that Act plies its income, or in force in any part of accumulates it for ap- India. plication, solely for the development of khadi or village industries, or both; (c) such institution is approved for such purpose by the Khadi and Village Industries Commission for a peri- od not exceeding three tax years at any one time; and (d) the procedure for withdrawal of approv- al granted shall be in such manner as may be prescribed. Sl. Income not to be Eligible persons Conditions No. included in total income A B C D 26. Any income from the A securitisation trust. Nil. activity of securiti- sation. 27. A ny inc o m e , by Any Investor Protec- (a) Such fund is notified way of contribu- tion Fund set up by by the Central Govern- tions received from recognised stock ex- ment; and recognised stock changes in India, either (b) where any amount exchanges and the jointly or separately. standing to the credit members thereof. of the Fund and not charged to income-tax during any tax year is shared, either whol- ly or in part, with a recognised stock ex- change, the whole of the amount so shared shall be deemed to be the income of the tax year in which such amount is so shared and shall according- ly be chargeable to income-tax. 28. Any income, by way Any Investor Protec- (a) Such fund is notified of contributions re- tion Fund set up by by the Central Govern- ceived from com- commodity exchanges ment; and modity exchanges in India, either jointly (b) where any amount and the members or separately. standing to the credit thereof. of the said Fund and not charged to in- come-tax during any tax year is shared, either wholly or in part, with a commodity exchange, the whole of the amount so shared shall be deemed to be the income of the tax year in which such amount is so shared and shall accordingly be chargeable to income- tax. Sl. Income not to be Eligible persons Conditions No. included in total income A B C D 29. Any income, by way Any Investor Protec- (a) Such fund is notified of contributions re- tion Fund set up as by the Central Govern- ceived from a de- per the regulations by ment; and pository. a depository. (b) where any amount standing to the credit of the Fund and not charged to income-tax during any tax year is shared, either wholly or in part with a depos- itory, the whole of the amount so shared shall be deemed to be the income of the tax year in which such amount is so shared and shall, accordingly, be charge- able to income-tax. 30. (a) Any income Any Core Settlement (a) Such fund is notified by way of con- Guarantee Fund, set by the Central Govern- tribution re- up by a recognised ment; and ceived from clearing corporation. (b) where any amount specified per- standing to the credit sons; of the Fund and not (b) any income by charged to income-tax way of penal- during any tax year is ties imposed shared, either wholly by the recog- or in part with the nised clearing specified person, the corporation whole of the amount so and credited shared shall be deemed to the Core Set- to be the income of the tle- ment Guar- tax year in which such antee Fund; amount is so shared (c) a n y i n c o m e and shall, according- from invest- ly, be chargeable to ment made by income-tax. the Fund. 31. Any income charge- (a) A registered un- Nil. able under the heads ion within the “Income from house meaning of the property” and “In- Tr a d e U n i o n s come from other Act, 1926 (16 of sources”. 1926), formed Sl. Income not to be Eligible persons Conditions No. included in total income A B C D primarily for the purpose of reg- ulating the re- lations between workmen and employers or be- tween workmen and workmen; or (b) an association of registered un- ions referred to in clause (a). 32. Any interest on se- Provident Fund to Such securities are held by, curities, and any which the Provident or are the property of such capital gains of the Funds Act, 1925 (19 of Provident Fund. fund arising from 1925) applies. the sale, exchange or transfer of such securities. 33. Any income of the Any person notified (a) Such international nature and to the by the Central Gov- sporting event— extent, arising from ernment. (i) is approved by the international the international sporting event held body regulating in India. the international sport relating to such event; (ii) has participation by more than two countries; and (iii) is notified by the Central Gov- ernment for the purposes of this clause; and (b) nature and extent of such income is notified by the Central Govern- ment. 34. Any income, of the A body or authority Such body or authority— nature and to the which has been estab- (a) is established or con- extent, which the lished or constituted stituted or appointed Central Government Sl. Income not to be Eligible persons Conditions No. included in total income A B C D may notify in this or appointed under a not for the purposes of behalf. treaty or an agreement profit; and entered into by the (b) is notified by the Cen- Central Government tral Government. with two or more coun- tries or a convention signed by the Central Government. 35. Any amount received Any individual. Nil. as a loan, either in lump sum or in in- stalment, in a trans- action of reverse mortgage referred to in section 70(1)(zh). 36. Any income of the A body or authority or Such body or authority or nature and to the Board or Trust or Com- Board or Trust or Commis- extent which the mission (by whatever sion— Central Government name called), or a class (a) has been established or may, by notific- thereof, other than constituted by or under ation, specify in this those covered under a Central Act, State or behalf. Schedule VII (Table: Sl. No. 42). Provincial Act, or con- stituted by the Central Government or a State Government, with the object of regulating or administering any activity for the benefit of the general public; (b) is not engaged in any commercial activity; and (c) is notified by the Cen- tral Government. 37. Any income accruing Indian Strategic Petro- It shall not apply to an or arising as a result leum Reserves Limited, arrangement, if the crude of arrangement for being a wholly owned oil is not replenished in the replenishment of subsidiary of the Oil storage facility within three crude oil stored in Industry Development years from the end of the tax its storage facili- Board under the Min- year in which the crude oil ty in pursuance of istry of Petroleum and was removed from the stor- the directions of the Natural Gas. age facility for the first time. Sl. Income not to be Eligible persons Conditions No. included in total income A B C D Central Government in this behalf. 38. Any gratuity com- Any widow, children or Nil. puted as per the dependants on death of provisions of section an employee. 19(1)(Table: Sl. No. 3.C) to (Table: Sl. No. 6.C). [38A. Disability Pension An individual who 37 (a) The individual has received (including has been a member of been invalided out of service element and the armed forces (in- service in the armed disability element). cluding paramilitary forces on account of forces) of the Union. bodily disability attrib- utable to, or aggravated by such service; and (b) the individual has not retired on superannua- tion or otherwise. 38B. Any interest on com- An individual or his Such interest is received un- pensation amount legal heir. der the Motor Vehicles Act, awarded by Motor 1988 (59 of 1988). Accident Claims Tri- bunal. 38C. Any income in re- An individual or a Such award or agreement is spect of any award Hindu undivided fam- made under the provisions or agreement made ily. of the Right to Fair Compen- on account of com- sation and Transparency in pulsory acquisition Land Acquisition, Rehabili- of any land. tation and Resettlement Act, 2013 (30 of 2013), except under section 46 of the said Act. 38D. Any income charge- An individual or a (a) Such eligible person able under the head Hindu undivided fam- was the owner of such “Capital gains” aris- ily. specified capital asset as ing from the transfer on the 2nd June, 2014; of specified capital (b) such specified capital asset. asset is transferred un- der the Land Pooling 37. Sl. Nos. 38A to 38D inserted by the Finance Act, 2026, w.e.f. 1-4-2026. Sl. Income not to be Eligible persons Conditions No. included in total income A B C D Scheme covered under the Andhra Pradesh Capital City Land Pool- ing Scheme (Formula- tion and Implementa- tion) Rules, 2015 made under the provisions of the Andhra Pradesh Capital Region Devel- opment Authority Act, 2014 (Andhra Pradesh Act 11 of 2014) and the rules, regulations and Schemes made under the said Act; and (c) such eligible person was handed over possession of reconstituted plot or land on or before the 31st March, 2031.] 39. Any income falling under section 10(15) (iic) or (15)(iv)(i) or (19A) or (40) of the Income-tax Act, 1961(43 of 1961), shall be subject to the conditions as provided therein. Note 1.—For the purposes of Sl. No. 3, the expression “disaster” shall have the same meaning as assigned to it in section 2(d) of the Disaster Management Act, 2005 (53 of 2005). Note 2.—For the purposes of Sl. Nos. 8 and 15, the expression “family” in relation to an individual, means— (i) the spouse and children of the individual; and (ii) the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual. Note 3.—For the purposes of Sl. No. 18, the expression “compensation or consideration” includes the compensation or consideration enhanced or further enhanced by any court, Tribunal or other authority. Note 4.—For the purposes of Sl. No. 20, the expression “Sikkimese” means— (i) an individual, whose name is recorded in the register maintained under the Sik- kim Subjects Regulation, 1961 read with the Sikkim Subject Rules, 1961 (herein referred to as the “Register of Sikkim Subjects”), immediately before the 26th April, 1975; (ii) an individual, whose name is included in the Register of Sikkim Subjects by virtue of the Government of India Order No. 26030/36/90-I.C.I., dated the 7th August, 1990 and Order of even number dated the 8th April, 1991; (iii) any other individual, whose name does not appear in the Register of Sikkim Sub- jects, but it is established beyond doubt that the name of the father or husband or paternal grand-father or brother from the same father of such individual has been recorded in that register; (iv) any other individual, whose name does not appear in the Register of Sikkim Subjects but it is established that such individual was domiciled in Sikkim on or before the 26th April, 1975; or (v) any other individual, who was not domiciled in Sikkim on or before the 26th April, 1975, but it is established beyond doubt that the father or husband or paternal grand-father or brother from the same father of such individual was domiciled in Sikkim on or before the 26th April, 1975. Note 5.—For the purposes of Sl. No. 21, the expression “concerned Board” means— (i) in relation to tea, the Tea Board shall mean the Tea Board established under section 4 of the Tea Act, 1953 (29 of 1953); (ii) in relation to rubber, the Rubber Board constituted under section 4 of the Rubber Act, 1947 (24 of 1947); (iii) in relation to coffee, the Coffee Board constituted under section 4 of the Coffee Act, 1942 (7 of 1942); (iv) in relation to cardamom, the Spices Board constituted under section 3 of the Spices Board Act, 1986 (10 of 1986); (v) in relation to any other commodity, any Board or other authority established under any law for the time being in force which the Central Govern- ment may, by notification, specify in this behalf. Note 6.—For the purposes of Sl. No. 22, the expression “local authority” means— (i) Panchayat as referred to in article 243(d) of the Constitution; or (ii) Municipality as referred to in article 243P(e) of the Constitution; or (iii) Municipal Committee and District Board, legally entitled to, or entrusted by the Government with, the control or manage- ment of a Municipal or local fund; or (iv) Cantonment Board constituted under section 3 of the Cantonments Act, 2006 (4 of 2006). Note 7.—For the purposes of Sl. No. 25,–– (a) “Khadi and Village Industries Commission” means the Khadi and Village Industries Commission established under the Khadi and Village Industries Commission Act, 1956 (61 of 1956); and (b) “khadi” and “village industries” shall have the same meanings as respectively assigned to them in that Act. Note 8.—For the purposes of Sl. No. 26,–– (a) “securitisation” shall have the same meaning as assigned to it,— (i) in regulation 2(1)(r) of the Securities and Exchange Board of India (Public Offer and Listing of Securitised Debt Instruments) Regulations, 2008 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and the Securities Contracts (Regulation) Act, 1956 (42 of 1956); or (ii) in section 2(1)(z) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); or (iii) under the guidelines on securitisation of standard assets issued by the Reserve Bank of India; (b) “securitisation trust” shall have the meaning assigned to it in section 221(6)(d). Note 9.—For the purposes of Sl. No. 28,–– “commodity exchange” shall mean a registered association as defined in section 2(jj) of the Forward Contracts (Regulation) Act, 1952 (74 of 1952). Note 10.— For the purposes of Sl. No. 29,–– (a) “depository” shall have the same meaning as assigned to it in section 2(1)(e) of the Depositories Act, 1996 (22 of 1996); (b) “regulations” shall mean the regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and the Depositories Act, 1996 (22 of 1996). Note 11: For the purposes of Sl. No. 30,–– (a) “recognised clearing corporation” shall have the same meaning as assigned to it in— (i) regulation 2(1)(p) of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and the Securities Contracts (Regulation) Act, 1956 (42 of 1956); or (ii) regulation 2(1)(n) of the International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019); (b) “regulations” means–– (i) the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 made under the Securities Contracts (Regulation) Act, 1956 (42 of 1956); or (ii) the International Financial Services Centres Authority (Market Infrastruc- ture Institutions) Regulations, 2021 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019); (c) “specified person” means— (i) any recognised clearing corporation which establishes and maintains the Core Settlement Guarantee Fund; (ii) any recognised stock exchange, being a shareholder in such recognised clearing corporation, or a contributor to the Core Settlement Guarantee Fund; and (iii) any clearing member contributing to the Core Settlement Guarantee Fund. [Note 12: For the purposes of Sl. No. 38A,— 38 (a) the provisions as mentioned against the said serial number shall apply on or after such date as may be notified by the Central Government in this behalf; and (b) pending such notification, the entire disability pension, that is, disability element and service element of a disabled officer of the Indian armed forces shall be exempt from income-tax. Note 13: For the purposes of Sl. No. 38D, “specified capital asset” means — (a) the land or building or both owned by the assessee as on the 2nd June, 2014 and which has been transferred under the Scheme; or (b) the land pooling ownership certificate issued under the Scheme to the assessee in respect of land or building or both referred to in clause (a); or (c) the reconstituted plot or land, as the case may be, received by the assessee in lieu of land or building or both referred to in clause (a) in accordance with the Scheme, if such plot or land, as the case may be, so received is transferred within two years from the end of the financial year in which the possession of such plot or land was handed over to him.]

SCHEDULE IV [See section 11] INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF ELIGIBLE NON- RESIDENTS, FOREIGN COMPANIES AND OTHER SUCH PERSONS In computing the total income of a tax year of any eligible person mentioned in column C of the Table below, the income mentioned in column B of the said Table shall not be included, subject to the conditions mentioned in column D of the said Table, and the expressions used in columns B to D shall have the meanings respec- tively assigned to them in the Notes below the said Table: TABLE Sl. Income not to be Eligible persons Conditions No. included in total income A B C D 1. Any income by way of (a) A person being an Such interest is on moneys interest. individual, who standing to the credit of is a resident out- such person in a Non-Res- side India as de- ident (External) Account in fined in section any bank in India as per the 2(w) of the For- said Act and the rules made eign Exchange thereunder. Management Act, 1999 (42 of 1999); or (b) a person being an individual who has been permitted by the Sl. Income not to be Eligible persons Conditions No. included in total income A B C D Reserve Bank of India to maintain the said account. 2. Any remuneration An official, by whatev- (a) The remuneration re- received for service er name called, of an ceived as a trade com- in the capacity as an embassy, high commis- missioner or other official mentioned in sion, legation, commis- official representative column C, not being a sion, consulate or the in India of the gov- citizen of India. trade representation of ernment of a foreign a foreign State, or as a State (not holding member of the staff of office as such in an any of these officials. honorary capacity), or as members of the staff, if any, of the government, resident for similar purposes in the country con- cerned enjoy a similar exemption in that country; and (b) the members of the staff are subjects of the country repre- sented and are not engaged in any busi- ness or profession or employment in India otherwise than as members of such staff. 3. Any remuneration re- A person who is an (a) The foreign enterprise ceived as an employee employee of a foreign is not engaged in any for services rendered enterprise, not being a trade or business in by him during his stay citizen of India. India; in India. (b) his stay in India does not exceed in the aggregate a period of ninety days in such tax year; and (c) such remuneration is not liable to be deducted from the in Sl. Income not to be Eligible persons Conditions No. included in total income A B C D come of the employer chargeable under this Act. 4. Any income charge- Any individual being a The total stay of such in- able under the head non-resident, not being dividual in India does not “Salaries”, received or a citizen of India. exceed in the aggregate a due as remuneration period of ninety days in the for services rendered tax year. in connection with his employment on a foreign ship. 5. Any remuneration re- An employee of the Such remuneration is re- ceived as an employee Government of a for- ceived during his stay in of the Government of eign State, not being a India in connection with his a foreign State. citizen of India. training in any establish- ment or office of, or in any undertaking owned by— (a) the Government; or (b) a n y c o m p a n y i n which the entire paid- up share capital is held by the Central Government or any State Government or State Governments, or partly by the Cen- tral Government and partly by one or more State Governments; or (c) any company which is a subsidiary of a company referred to in clause (b); or (d) any corporation es- tablished by or under a Central Act or State Act or Provincial Act; or (e) any society registered under the Societies Sl. Income not to be Eligible persons Conditions No. included in total income A B C D Registration Act, 1860 (21 of 1860), or under any other law and wholly fi- nanced by the Central Government, or any State Government or State Governments, or partly by the Cen- tral Government and partly by one or more State Governments. 6. Any income arising by Any foreign company. (a) Such company is no- way of royalty or fees tified by the Central for technical services. Government; and (b) such income is re- ceived in pursuance of an agreement en- tered into with the Central Government for providing services in or outside India in projects connected with security of India. 7. Any income arising by A non-resident, not (a) S u c h r o y a l t y i s way of royalty from, being a company, or a received from the or fees for technical foreign company. National Technical services rendered in Research Organisa- or outside India. tion; or (b) such fees is for tech- nical services ren- dered to the National Technical Research Organisation. 8. Interest received. Non-resident or a per- Such interest is received in son who is not ordi- India on a deposit made on narily resident. or after the 1st April, 2005 in an Offshore Banking Unit referred to in section 2(u) of the Special Economic Zones Act, 2005 (28 of 2005). Sl. Income not to be Eligible persons Conditions No. included in total income A B C D 9. Income from lease Foreign company. (a) Such income is re- rentals, by whatever ceived from a speci- name called, of cruise fied company which ship. operates such ship or ships in India; (b) such foreign compa- ny and the specified company are sub- sidiaries of the same holding company; and (c) such income is re- ceived or accrues or arises in India for any relevant tax year be- ginning on or before the 1st April, 2029. 10. Any income derived The European Eco- Such investments are made in India by way of nomic Community. out of its funds under such interest, dividends or scheme as the Central Capital gains from Government may, by noti- investments made. fication specify. 11. Any income received A foreign company. (a) Such income is on in India in Indian account of sale of currency. crude oil or any other goods or rendering of services, as may be notified by the Central Government in this behalf, to any person in India; (b) receipt of such income in India by the foreign company is pursuant to an agreement or an arrangement entered into by the Central Government or ap- proved by the Central Government; (c) such foreign company and the agreement or Sl. Income not to be Eligible persons Conditions No. included in total income A B C D arrangement is no- tified by the Central Government, having regard to the national interest; and (d) such foreign company is not engaged in any activity in India, other than activity resulting in such income. 12. Any income accruing A foreign company. (a) Such storage and or arising on account sale by the foreign of storage of crude oil company is pursuant in a facility in India to an agreement or an and sale of such crude arrangement entered oil to any person resi- into by the Central dent in India. Government or ap- proved by the Central Government; and (b) such foreign company and the agreement or arrangement is no- tified by the Central Government, having regard to the national interest. 13. Any income accruing A foreign company. Such sale shall be as per the or arising on account terms mentioned in the said of sale of leftover agreement or arrangement, stock of crude oil, if subject to such conditions any, from the facili- as may be notified by the ty in India after the Central Government in this expiry of the agree- behalf. ment or arrangement referred to against serial number 12 or on termination of the said agreement or arrangement. 39 [13A. Any income arising A foreign company, who (a) Ownership of such on account of pro- is providing capital capital goods, equip- viding capital goods, goods, equipment or ment or tooling re- equipment or tooling tooling to the contract mains with the foreign to a contract manu- manufacturer for use in company; 39. Sl. Nos. 13A, 13B and 13C inserted by the Finance Act, 2026, w.e.f. 1-4-2026. Sl. Income not to be Eligible persons Conditions No. included in total income A B C D facturer, being a com- electronic manufactur- (b) such capital goods, pany resident in India. ing in India. equipment or tooling is under the control and direction of the con- tract manufacturer; (c) the contract manufac- turer is located in a custom bonded area, that is, a warehouse referred to in section 65 of the Customs Act, 1962 (52 of 1962); (d) the contract manufac- turer produces elec- tronic goods on behalf of the foreign company for a consideration; (e) such exemption shall be available up to the tax year 2030-2031. 13B. Any income which An individual, being a (a) S u c h i n d i v i d u a l , accrues or arises out- non-resident for a peri- during the relevant side India, and is not od of five consecutive tax year renders any deemed to accrue or tax years immediately service in India in arise in India. preceding the tax year connection with any during which he visits scheme as may be India for the first time notified by the Central for rendering services Government; in India in connection (b) such exemption shall with any scheme as not be available be- may be notified by the yond a period of five Central Government. consecutive tax years commencing from the first tax year during which he visits India in connection with such scheme; and (c) such other conditions, as may be prescribed. 13C. Any income accruing A foreign company. (a) Such foreign compa- or arising in India ny is notified by the Sl. Income not to be Eligible persons Conditions No. included in total income A B C D or deemed to accrue Central Government or arise in India by in this behalf; way of procuring data (b) such foreign company centre services from a does not own or oper- specified data centre. ate any of the physical infrastructure or any resources of the spec- ified data centre; (c) all sales by such for- eign company to users located in India are made through a re- seller entity being an Indian company; (d) such foreign com- pany maintains and furnishes such infor- mation in such form and manner, as may be prescribed; and (e) such exemption shall be available up to tax year ending on the 31st March, 2047.] 14. Any income falling under section 10(6A), (6B), (6BB), (15A), (15)(iiia), (15)(iiib), (15)(iiic) or (15)(iv) (a), (15)(iv)(b) or (15)(iv)(fa) of the Income-tax Act, 1961 (43 of 1961) subject to the conditions as specified therein. Note 1.—For the purposes of Sl. No. 9,–– (a) “specified company” means any company, other than a domestic company which operates cruise ships in India and opts to pay tax as per the provisions of section 61(2) (Table: Sl. No. 2); (b) “holding company”, in relation to a foreign company or a specified company, means a company of which such companies are subsidiary companies; and (c) “subsidiary company” or “subsidiary”, in relation to a holding company, means a company in which the holding company exercises or controls more than one- half of the total share capital either at its own or together with one or more of its subsidiary companies. Note 2: For the purposes of Sl. No. 10,–– “European Economic Community” means the European Economic Community established by the Treaty of Rome of 25th March, 1957. [Note 3: For the purposes of Sl. No. 13C,–– 40 (a) “data centre” means a dedicated secure space within a building or centralised loca- tion where computing and networking equipment is concentrated for the purpose of collecting, storing, processing, distributing or allowing access to large amounts of data; (b) “data centre services” means the services provided by a data centre through the use of physical infrastructure including land, buildings, mechanical electrical power equipments, cooling system, security and information technology infrastructure including servers, computers, storage systems, operating systems, security solutions, network and associated software platforms, networking and other equipment, human resource in India; (c) “specified data centre” means a data centre which is–– (i) set up under an approved scheme and is notified in this behalf by the Central Government in the Ministry of Electronics and Information Technology; and (ii) owned and operated by an Indian company.]

SCHEDULE V [See section 11] INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF CERTAIN ELIGIBLE PERSONS INCLUDING INVESTMENT FUNDS, BUSINESS TRUSTS AND THEIR UNIT HOLDERS In computing the total income of a tax year of any eligible person mentioned in column C of the Table below, the income mentioned in column B of the said Table shall not be included, subject to the conditions mentioned in column D of the said Table, and the expressions used in columns B to D of the said Table shall have the meanings respectively assigned to them in Notes below the said Table: TABLE Sl. Income not to be Eligible persons Conditions No. included in total income A B C D 1. Any income other An investment Nil. than the income fund. chargeable under the head “Profits and gains of business or profession”. Sl. Income not to be Eligible persons Conditions No. included in total income A B C D 2. Any income referred A unit holder of Nil. to in section 224, an investment accruing or arising fund. to, or received being that proportion of income which is of the same nature as income chargeable under the head “Profits and gains of business or profession”. 3. Any income by way A business trust. Nil. of— (a) i n t e r e s t r e - ceived or re- ceivable from a special pur- pose vehicle; or (b) dividend re- ceived or re- ceivable from a special pur- pose vehicle. 4. Any income by way A business trust, Nil. of renting or leasing being a real or letting out any real estate invest- estate asset owned ment trust. directly by such business trust. 5. Any distributed Any unit holder Exemption shall not be allowed income referred to of a business on that proportion of the income in section 223. trust. which is of the same nature as–– (a) interest received or receivable from a special purpose vehi- cle by the business trust; or (b) dividend received or receiv- able from a special purpose vehicle by the business trust (in a case where the special purpose vehicle has exercised the option under section 200); or Sl. Income not to be Eligible persons Conditions No. included in total income A B C D (c) income of a business trust, being a real estate investment trust, by way of renting or leasing or letting out any real estate asset owned directly by such business trust. 6. Any income from Venture capital Nil. investment in a ven- company or ture capital under- venture capital taking. fund other than an investment fund specified in section 224(10) (a). 7. Any income of the A specified per- (a) Such investment— nature of–– son. (i) is made on or after the (a) dividend; 1st April, 2020 but on or (b) interest; before the 31st March, (c) any sum re- 2030; ferred to in sec- (ii) is held for at least three tion 92(2)(k); years; and or (iii) is in,— (d) long-term cap- (A) a business trust ital gains (whe- being an eligible ther or not such InvIT; capital gains (B) an eligible infra- are deemed as structure entity; short-term cap- (C) an eligible Alter- ital gains under nate Investment section 76), Fund; arising from an (D) an eligible domes- investment made by tic company; or a specified person in (E) an eligible Non- India, whether in the banking Finan- form of debt or share cial Company; capital or unit. (b) if any difficulty arises in in- terpreting or implementing the provisions, the Board may issue guidelines; (c) such guidelines shall be–– (i) issued with the previous approval of the Central Government; Sl. Income not to be Eligible persons Conditions No. included in total income A B C D (ii) laid before each House of Parliament; and (iii) binding on the Income- tax Authority and the specified person; (d) where any income has not been included in the total in- come of the specified person, and subsequently during any tax year the specified person fails to satisfy any of these conditions so that the said income would not have been eligible for such non-inclu- sion, such income shall be chargeable to income-tax as the income of the specified person of that tax year; (e) where an eligible Alternate Investment Fund has invest- ment of less than 100% in one or more of eligible in- frastructure entity or eligible domestic company or eligible Non-Banking Financial Com- pany or in an eligible InvIT, income accrued or arisen or received or attributable to such investment, directly or indirectly, which is exempt herein shall be calculated pro- portionately to that invest- ment made in one or more of the eligible infrastructure entity or eligible domestic company or eligible Non- Banking Financial Company or in an eligible InvIT, in such manner as may be prescribed; (f) where an eligible domestic company has investment of less than 100% in one or more Sl. Income not to be Eligible persons Conditions No. included in total income A B C D of the eligible infrastructure entity, income accrued or arisen or received or attrib- utable to such investments, directly or indirectly, which is exempt herein shall be calculated proportionately to the investment made in one or more of the eligible infra- structure entity, in such man- ner, as may be prescribed; (g) where an eligible Non-Bank- ing Financial Company has lending of less than 100% in one or more of the eligible infrastructure entity, income accrued or arisen or received or attributable to such lend- ing, directly or indirectly, which is exempt herein shall be calculated proportion- ately to the lending made in eligible infrastructure entity, in such manner, as may be prescribed; (h) in case a sovereign wealth fund or pension fund has loans or borrowings, directly or indirectly, for the purpos- es of making investment in India, such fund shall be deemed to be not eligible for exclusion from total income. 8. Any income fall- ing under section 10(23F) and (23FA) of the Income-tax Act, 1961 (43 of 1961), subject to the conditions as speci- fied therein. Note 1.—For the purposes of Sl. Nos. 1 and 2, the expression “investment fund” shall have the meaning assigned to it in section 224(10)(a). Note 2.—For the purposes of Sl. No. 3, the expression “special purpose vehicle” means an Indian company in which the business trust holds controlling interest and any specific per- centage of shareholding or interest, as may be required by the law under which such trust is granted registration. Note 3.—For the purposes of Sl. Nos. 4 and 5, the expression “real estate asset” shall have the same meaning as assigned to it in regulation 2(1)(zj) of the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992). Note 4.—For the purposes of Sl. No. 6,–– (a) “venture capital company” means a company which— (i) has been granted a certificate of registration, before the 21st May, 2012, as a Venture Capital Fund and is regulated under the Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996 (herein referred to as the Venture Capital Funds Regulations) made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); or (ii) has been granted a certificate of registration as Venture Capital Fund as a sub-category of Category I Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 (herein referred to as the Alternative Investment Funds Regulations) made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), and which fulfils the following conditions:— (A) it is not listed on a recognised stock exchange; (B) it has invested not less than two-thirds of its investible funds in un- listed equity shares or equity linked instruments of venture capital undertaking; and (C) it has not invested in any venture capital undertaking in which its director or a substantial shareholder (being a beneficial owner of equity shares exceeding 10% of its equity share capital) holds, either individually or collectively, equity shares in excess of 15% of the paid-up equity share capital of such venture capital undertaking; (b) “venture capital fund” means a fund— (i) operating under a trust deed registered under the provisions of the Regis- tration Act, 1908 (16 of 1908), which— (A) has been granted a certificate of registration, before the 21st May, 2012, as a Venture Capital Fund and is regulated under the Venture Capital Funds Regulations; or (B) has been granted a certificate of registration as Venture Capital Fund as a sub-category of Category I Alternative Investment Fund under the Alternative Investment Funds Regulations or as referred to in regulation 18(2) of the International Financial Services Centres Authority (Fund Management) Regulations, 2022 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019), and which fulfils the following conditions:— (I) it has invested not less than two-thirds of its investible funds in unlisted equity shares or equity linked instruments of venture capital undertaking; (II) it has not invested in any venture capital undertaking in which its trustee or the settler holds, either individually or collectively, equity shares in excess of 15% of the paid-up equity share capital of such venture capital undertaking; (III) the units, if any, issued by it are not listed in any recognised stock exchange; and (IV) any other condition as may be prescribed; or (ii) operating as a venture capital scheme made by the Unit Trust of India; (c) “venture capital undertaking” means— (i) a venture capital undertaking as defined in regulation 2(n) of the Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996; or (ii) a venture capital undertaking as defined in regulation 2(1)(aa) of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. Note 5.—For the purposes of Sl. No. 7,–– (a) “specified person” means— (i) a wholly owned subsidiary of the Abu Dhabi Investment Authority, which— (A) is a resident of the United Arab Emirates; and (B) makes investment, directly or indirectly, out of the fund owned by the Government of Abu Dhabi; (ii) a sovereign wealth fund, which satisfies the following conditions:— (A) it is wholly owned and controlled, directly or indirectly, by the gov- ernment of a foreign country; (B) it is set up and regulated under the law of such foreign country; (C) the earnings of the said fund are credited either to the account of the government of that foreign country or to any other account designated by that government so that no portion of the earnings enures any benefit to any private person; (D) the asset of the said fund vests in the government of such foreign country upon dissolution; (E) the provisions of items (C) and (D) shall not apply to any payment made to creditors or depositors for loan taken or borrowing for the purposes other than for making investment in India; (F) it does not participate in the day-to-day operations of investee but the monitoring mechanism to protect the investment with the investee including the right to appoint directors or executive director shall not be considered as participation in the day to day operations of the investee; and (G) it is specified by the Central Government, by notification for this purpose and fulfils the conditions specified in such notification; (iii) a pension fund, which— (A) is created or established under the law of a foreign country including the laws made by any of its political constituents, being a province, State or local body, by whatever name called; (B) is not liable to tax in such foreign country or if liable to tax, exemption from taxation for all its income has been provided by such foreign country; (C) does not participate in the day-to-day operations of investee but the monitoring mechanism to protect the investment with the investee including the right to appoint directors or executive director shall not be considered as participation in day-to-day operations of the investee; (D) is specified by the Central Government, by notification for this pur- pose and fulfils conditions specified in such notification; and (E) satisfies such other conditions as may be prescribed; (iv) the Public Investment Fund of the Government of the Kingdom of Saudi Arabia; (v) a wholly owned subsidiary of the Public Investment Fund of the Government of the Kingdom of Saudi Arabia, which–– (A) is a resident of Saudi Arabia; and (B) makes investment, directly or indirectly, out of the fund owned by such Government; (b) “investee” means a business trust or eligible infrastructure entity or eligible Al- ternate Investment Fund or eligible domestic company or eligible Non-Banking Financial Company, in which the sovereign wealth fund or the pension fund has made the investment directly or indirectly; (c) “loan and borrowing” means— (i) any loan taken or borrowing by a sovereign wealth fund from or any deposit or investment made in a sovereign wealth fund by, any person other than the Government of the country in which the sovereign wealth fund is set up; (ii) any loan taken or borrowing by a pension fund from or any deposit or investment made in a pension fund by any person, but shall not include–– (A) the deposit or investment which represents statutory obligations and defined contributions of one or more funds or plans established for providing retirement, social security, employment, disability or death benefits; or (B) any similar compensation to the participants or beneficiaries of such funds or plans, as the case may be; (d) “eligible infrastructure entity” means a company or enterprise or an entity carrying on–– (i) the business of developing, or operating and maintaining, or developing, operating and maintaining an infrastructure facility as defined in section 138; or (ii) such other business as the Central Government may, by notification, specify in this behalf; (e) “eligible Alternate Investment Fund” means Category-I or Category-II Alternative Investment Fund–– (i) regulated under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); (ii) having not less than 50% investment in one or more of the eligible infra- structure entity or eligible domestic company or eligible Non-Banking Financial Company or in an eligible InvIT, computed in such manner as may be prescribed; (f) “eligible domestic company” means a domestic company–– (i) set up and registered on or after the 1st April, 2021; and (ii) having minimum 75% investments in one or more of the eligible infrastruc- ture entities, computed in such manner, as may be prescribed; (g) “eligible Non-Banking Financial Company” means–– (i) a non-banking financial company registered as an Infrastructure Finance Company as referred to in notification number RBI/2009-10/316 issued by the Reserve Bank of India or in an Infrastructure Debt Fund, a non-banking finance company as referred to in the Reserve Bank of India (Non-Banking Financial Company-Scale Based Regulations) Directions, 2023, issued by the Reserve Bank of India; and (ii) having minimum 90% lending to one or more of eligible infrastructure entities, computed in such manner, as may be prescribed; and (h) “eligible InvIT” means an Infrastructure Investment Trust referred to in section 2(21)(a).

SCHEDULE VI [See section 11] INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF CERTAIN ELIGIBLE PERSONS IN INTERNATIONAL FINANCIAL SERVICES CENTRE OR HAVING INCOME THEREFROM In computing the total income of a tax year of any eligible person, as mentioned in column C of the Table below, the income mentioned in column B of the said Table and the income as mentioned in savings clause shall not be included, subject to the conditions mentioned in column D of the said Table, and the expressions used in columns B to D of the said Table, shall have the meanings respectively assigned to them in the Notes below the said Table. TABLE Sl. Income not to be Eligible Conditions No. included in total persons income A B C D 1. Any income accrued Any specified (a) Consideration is paid or pay- or arisen to, or re- fund. able in convertible foreign ceived, as a result of exchange; transfer of capital (b) Income shall not be included in asset referred to in the total income to the extent section 70(1)(r) where such income is attributable such transfer takes to–– place on a recognised (i) units held by non-resi- stock exchange locat- dent (not being the per- ed in any Internation- manent establishment of al Financial Services a non-resident in India); Centre. or (ii) the investment division of offshore banking unit; and (c) The income exempt shall be computed in such manner as may be prescribed. 2. Any income accrued Any specified As specified in clauses (b) and (c) of or arisen to, or re- fund. column D against Sl. No. 1. ceived, as a result of transfer of securities (other than shares in a company resident in India). 3. Any income from se- Any specified (a) Such income otherwise does curities issued by a fund. not accrue or arise in India; non-resident where (b) As specified in clauses (b) such securities are not and (c) of column D against issued by a permanent Sl. No. 1. establishment of a non- resident in India. 4. Any income from a Any specified As specified in clauses (b) and (c) of securitisation trust, fund. column D against Sl. No. 1. which is chargeable under the head “Prof- its and gains of busi- ness or profession”. 5. Any income accrued Non-resident. (a) Such contract, instrument or or arisen to, or re- derivative is entered into with ceived as a result of— an offshore banking unit Sl. Income not to be Eligible Conditions No. included in total persons income A B C D (a) transfer of non- of an International Financial deliverable for- Services Centre as referred to ward contracts in section 147 or any Foreign or offshore de- Portfolio Investor being a unit rivative instru- of an International Financial ments or over- Services Centre; and the-counter de- (b) it fulfils such conditions, as rivatives; or may be prescribed. (b) distribution of income on off- shore derivative instruments or over-the-coun- ter derivatives. 6. Any income by way of Non-resident. (a) Such royalty or interest is paid royalty or interest on by a unit of an International account of lease of an Financial Services Centre as aircraft or a ship in a referred to in section 147; tax year. and (b) such unit has commenced its operations on or before the 31st March, 2030. 7. Any income received Non-resident. (a) Such income is received in from–– an account maintained with (a) portfolio of se- an Offshore Banking Unit in curities or finan- any International Financial cial products or Services Centre as referred to funds, managed in section 147; and or administered (b) the income not to be included by any portfo- in the total income shall be to lio manager on the extent such income accrues behalf of the or arises outside India and is non-resident; or not deemed to accrue or arise (b) such activity in India. carried out by such person, as may be no- tified by the Central Gov- ernment. Sl. Income not to be Eligible Conditions No. included in total persons income A B C D 8. Any income by way A non-res- (a) The domestic company— of Capital gains aris- ident, or a (i) is engaged primarily in ing from the transfer Unit of an the business of leasing of equity shares of Internation- of an aircraft or a ship; domestic company al Financial (ii) has commenced oper- where such domestic Services Cen- ations on or before the company is a Unit tre as referred 31st March, 2030; and of an International to in section Financial Services 147, engaged (b) exclusion from total income Centre as referred to primarily in shall be available for capital in section 147. the business gains arising from the trans- of leasing of fer of equity shares of such aircraft or a domestic company in a tax ship. year falling within— (i) ten tax years beginning with the tax year in which the domestic company has commenced opera- tions; or (ii) ten tax years beginning with the tax year com- mencing on the 1st April, 2023, where the period referred to in sub-clause (i) ends before the 1st April, 2033. 9. Any income accru- A unit holder Nil. ing or arising to, of a specified or received from a fund. specified fund or on transfer of units in a specified fund. 10. Any income of the na- Any non-resi- (a) The Capital gain is on account ture of Capital gains, dent or a spec- of transfer of shares by the arising or received on ified fund. resultant fund or a specified account of transfer of fund; and share of a company (b) such shares were transferred resident in India. from the original fund, or from its wholly owned special pur- pose vehicle, to the resultant fund in relocation, and the capital gains on such shares were not chargeable to tax if that relocation had not taken place; and Sl. Income not to be Eligible Conditions No. included in total persons income A B C D (c) income not to be included in the total income shall be to the extent attributable to units held by non-residents (not be- ing a permanent establishment of a non-resident in India) in such manner, as may be pre- scribed. 11. Any income by way A Unit of any Such Unit is primarily engaged in of dividends from a International the business of leasing of an aircraft company being a Unit Financial Ser- or a ship. of an International vices Centre. Financial Services Centre primarily en- gaged in the business of leasing of an air- craft or a ship. 12. Any income by way of Non- resident. Such interest is payable by a Unit interest payable. of an International Financial Ser- vices Centre in respect of moneys borrowed by it on or after the 1st September, 2019. Note 1: For the purposes of Sl. Nos. 1 to 4,–– (a) “convertible foreign exchange” means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 (42 of 1999) and the rules made thereunder; (b) “investment division of offshore banking unit” means an investment division of a banking unit of a non-resident located in an International Financial Services Centre as referred to in section 147 and which has commenced its operations on or before the 31st March, 2030; (c) “manager” shall have the same meaning as assigned to it in regulation 2(1)(q) of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); (d) “permanent establishment” shall have the meaning assigned to it in section 173(c); (e) “securities” shall have the same meaning as assigned to it in section 2(h) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and shall also include such other securities or instruments as may be notified by the Central Government in this behalf; (f) “securitisation trust” shall have the meaning assigned to it in section 221(6)(d); (g) “specified fund” means— (i) a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate and located in International Financial Services Centres,— (A) which has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated–– (I) under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); (II) under the International Financial Services Centres Authority (Fund Management) Regulations, 2022 made under the Inter- national Financial Services Centres Authority Act, 2019 (50 of 2019); or (B) which has been granted a certificate as a retail scheme or an Exchange Traded Fund, and satisfies the conditions laid down for such schemes or funds under the International Financial Services Centres Authority (Fund Management) Regulations, 2022 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019); [(C) of which all the units other than the unit held by a sponsor or manager 41 are held by non-residents except,–– (I) where such non-resident becomes resident under section 6(2) or (3) or (4) or (5) or (6) or (7) in any tax year subsequent to that tax year; and (II) the number of units held by such resident unit holder or holders do not exceed 5% of the total units issued and shall fulfil such other conditions as may be prescribed; or] (ii) investment division of an offshore banking unit, which has been— (A) granted a certificate of registration as a Category-I foreign portfolio investor under the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and which has commenced its operations on or before the 31st March, 42[2030]; and “of which all the units are held by non-residents except–– (I) the unit held by a sponsor or manager; (II) where any unit holder or holders, being non-resident during the tax year when such unit or units were issued, becomes resident under section 6(2) or (3) or (4) or (5) or (6) or (7) in any tax year subsequent to that year; (III) in case of sub-item (II), aggregate value and the number of units held by such resident unit holder or holders do not exceed 5% of the total units issued and shall fulfil such other conditions as may be prescribed; or” (B) fulfils such conditions including maintenance of separate accounts for its investment division, as may be prescribed; (h) “sponsor” shall have the same meaning as assigned to it in regulation 2(1)(w) of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); (i) “trust” means a trust established under the Indian Trusts Act, 1882 (2 of 1882) or under any other law; (j) “units” mean beneficial interest of an investor in the fund and shall include shares or partnership interests. Note 2: For the purposes of Sl. No. 5,–– “Foreign Portfolio Investor” shall mean a person registered as per the provisions of the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992). Note 3: For the purposes of Sl. Nos. 6, 8 and 11,–– (a) “aircraft” means an aircraft or a helicopter, or an engine of an aircraft or a heli- copter, or any part thereof; (b) “ship” means a ship or an ocean vessel, engine of a ship or ocean vessel, or any part thereof. Note 4: For the purposes of Sl. No. 7,–– “portfolio manager” shall have the same meaning as assigned to it in regulation 2(1)(z) of the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019). Note 5: For the purposes of Sl. No. 9,–– (a) “specified fund” shall have the same meaning as assigned to it in Note 1(g); (b) “unit” means beneficial interest of an investor in the fund and shall include shares or partnership interests. Note 6: For the purposes of Sl. No. 10,–– (a) “original fund”, “relocation” and “resultant fund” shall have the meanings respec- tively assigned to them in section 70(2); (b) “specified fund” shall have the meaning assigned to it in Note 1(g). Note 7: For the purposes of Sl. No. 12,–– “Unit” shall have the same meaning as assigned to it in section 2(zc) of the Special Economic Zones Act, 2005 (28 of 2005).

SCHEDULE VII [See section 11] PERSONS EXEMPT FROM TAX Any eligible person, mentioned in column B of the Table below, shall not be liable to pay income-tax on the total income for any tax year, subject to the conditions mentioned in column C of the said Table, and the expression used in columns B and C of the said Table, shall have the meanings respectively assigned to them in the Notes below the said Table: TABLE Sl. Eligible persons Conditions No. A B C 1. Any regimental Fund or Non-public Such Fund is for the welfare of the Fund established by the armed forces past and present members of the of the Union. armed forces or their dependants. 2. Any fund established for such (a) Such fund— purposes as may be notified by the (i) applies its income or accu- Board for the welfare of employees or mulates it for application, their dependants and such employees wholly and exclusively to are members of such fund. the objects for which it is established; and (ii) invests its funds and contributions and other sums received by it in the forms or modes specified in section 350; (b) such fund is approved by the Principal Commissioner or Commissioner in such manner as may be prescribed; and such approval shall at any one time have effect for such tax year or years not exceeding three tax years as specified in the order of approval. 3. Any fund, by whatever name called, set (a) The contribution is made to up by the Life Insurance Corporation such pension scheme by any of India on or after the 1st August, person for the purpose of re- 1996 or any other insurer under a ceiving pension from such fund; pension scheme. and (b) such scheme is approved by the Controller of Insurance or the Insurance Regulatory and Development Authority estab- lished under section 3(1) of Sl. Eligible persons Conditions No. A B C the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999). 4. An authority (whether known as the Such authority is established in Khadi and Village Industries Board a State by or under a State Act or or by any other name). Provincial Act for the development of khadi or village industries in the State. 5. Any body or authority (whether or not (a) Such body or authority pro- a body corporate or corporation sole) vides for the administration established, constituted or appointed of any one or more of public by or under any Central Act or State religious or charitable trusts Act or Provincial Act. or endowments (including, temples, gurudwaras, wakfs, churches, synagogues, agiaries or a mutt or other places of pub- lic religious worship) or socie- ties for religious or charitable purposes, registered under the Societies Registration Act, 1860 (21 of 1860), or any other law; and (b) exclusion from total income as provided herein shall not be available to any trust, endow- ment or society being adminis- tered by such body or authority. 6. SAARC Fund for Regional Projects Nil set up by Colombo Declaration issued on the 21st December, 1991 by the Heads of State or Government of the Member Countries of South Asian Association for Regional Cooperation established on the 8th December, 1985 by the Charter of the South Asian Association for Regional Cooperation. 7. Insurance Regulatory and De- Nil velopment Authority established under section 3(1) of the Insur- ance Regulatory and Development Authority Act, 1999 (41 of 1999). Sl. Eligible persons Conditions No. A B C 8. Central Electricity Regulatory Com- Nil mission constituted under section 76(1) of the Electricity Act, 2003 (36 of 2003). 9. Prasar Bharati (Broadcasting Corpo- Nil ration of India) established section 3(1) of the Prasar Bharati (Broad- casting Corporation of India) Act, 1990 (25 of 1990). 10. The Prime Minister’s National Relief Nil Fund or the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND). 11. The Prime Minister’s Fund (Promo- Nil tion of Folk Art). 12. The Prime Minister’s Aid to Students Nil Fund. 13. The National Foundation for Nil Communal Harmony. 14. The Swachh Bharat Kosh, set up by Nil the Central Government. 15. The Clean Ganga Fund set up by the Nil Central Government. 16. The Chief Minister’s Relief Fund or Nil the Lieutenant Governor’s Relief Fund in respect of any State or Union territory as referred to in section 133(1)(a)(xv). 17. Any University or other educational (a) It exists solely for educational institution wholly or substantially purposes and not for purposes financed by the Government. of profit; and (b) if the Government grant to such University or other educational institution exceeds such per- centage of the total receipts including any donations, as may be prescribed, of such University or other educational institution, it shall be consid- ered as being substantially Sl. Eligible persons Conditions No. A B C financed by the Government during the relevant tax year. 18. Any hospital or other institution (a) It is for the reception and wholly or substantially financed by treatment of persons suffering the Government. from illness or mental defective- ness, or for the reception and treatment of persons during convalescence or of persons requiring medical attention or rehabilitation; (b) it exists solely for philanthropic purposes and not for the pur- poses of profit; and (c) if the Government grant to such hospital or other institution exceeds such percentage of the total receipts including any do- nations, as may be prescribed, of such hospital or other insti- tution, it shall be considered as being substantially financed by the Government during the relevant tax year. 19. (a) Any University or other educa- (a) Such University or other edu- tional institution; cational institution exists solely (b) any hospital or other institu- for educational purposes and tion. not for the purposes of profit; (b) such hospital or other institu- tion is for the reception and treatment of persons suffering from illness or mental defective- ness, or for the reception and treatment of persons during convalescence or of persons requiring medical attention or rehabilitation; (c) such hospital or other insti- tution exists solely for philan- thropic purposes and not for the purposes of profit; and Sl. Eligible persons Conditions No. A B C (d) the aggregate of annual receipts of such University or Universi- ties or educational institution or institutions, and hospital or hospitals or institution or institutions, does not exceed five crore rupees; (e) where such University or other educational institution or such hospital or other institution receives any anonymous do- nation defined under section 355(a), the provisions of section 337 (Table: Sl. No. 1) in respect of specified income shall apply mutatis mutandis as they ap- ply in the case of a registered non-profit organisation and such anonymous donations shall be excluded from the in- come on which no tax is payable. 20. A Mutual Fund registered under Nil. the Securities and Exchange Board of India Act, 1992 (15 of 1992) or regulations made thereunder. 21. Any Mutual Fund set up by a public Such conditions as the Central sector bank or a public financial Government may, by notification, institution or authorised by the specify. Reserve Bank of India. 22. A recognised provident fund. Nil. 23. An approved superannuation fund. Nil. 24. An approved gratuity fund. Nil. 25. Deposit-linked Insurance Fund Nil. established under section 3G of the Coal Mines Provident Funds and Miscellaneous Provisions Act, 1948 (46 of 1948). 26. Deposit-linked Insurance Fund Nil. established under section 6C of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952). Sl. Eligible persons Conditions No. A B C 27. Employees’ State Insurance Fund Nil. set up under the provisions of the Employees’ State Insurance Act, 1948 (34 of 1948). 28. An agricultural produce market Such committee or board is consti- committee or board constituted tuted for the purpose of regulating under any law. the marketing of agricultural pro- duce. 29. A corporation established by a Such corporation or other body or Central Act or State Act or Provincial institution or association has been Act or of any other body, institution established or formed for promoting or association (being a body, institu- the interests of the members of the tion or association wholly financed Scheduled Castes or the Scheduled by the Government). Tribes or backward classes, or of any two, or all of them. 30. A corporation established by the Nil. Central Government or any State Government for promoting the interests of the members of a minority community. 31. Any corporation established by a Nil. Central Act or State Act or Provincial Act for the welfare and economic upliftment of ex-servicemen being the citizens of India. 32. Any co-operative society formed Membership of such co-operative for promoting the interests of the society shall consist of only other members of either the Scheduled co-operative societies formed for Castes or Scheduled Tribes, or both. similar purposes and the finances of the society are provided by the Government and such other societies. 33 Coffee Board constituted under Nil. section 4 of the Coffee Act, 1942 (7 of 1942). 34. Rubber Board constituted under Nil. section 4(1) of the Rubber Board Act, 1947 (24 of 1947). 35. Tea Board established under section Nil. 4 of the Tea Act, 1953 (29 of 1953). 36. Tobacco Board constituted under the Nil. Tobacco Board Act, 1975 (4 of 1975). Sl. Eligible persons Conditions No. A B C 37. Marine Products Export Development Nil. Authority established under section 4 of the Marine Products Export Development Authority Act, 1972 (13 of 1972). 38. Agricultural and Processed Food Nil. Products Export Development Authority established under section 4 of the Agricultural and Processed Food Products Export Development Act, 1985 (2 of 1986). 39. Spices Board constituted under Nil. section 3(1) of the Spices Board Act, 1986 (10 of 1986). 40. Coir Board established under section Nil. 4 of the Coir Industry Act, 1953 (45 of 1953). 41. New Pension System Trust estab- Nil. lished on the 27th February, 2008 under the provisions of the Indian Trusts Act, 1882 (2 of 1882). 42. Any body or authority or Board or Such body or authority or Board Trust or Commission, not being a or Trust or Commission is notified company, which has been established by the Central Government. or constituted by or under a Central Act or State Act with one or more of the following purposes,— (a) dealing with and satisfying the need for housing accommoda- tion; (b) planning, development or im- provement of cities, towns and villages; (c) regulating, or regulating and developing, any activity for the benefit of the general public; or (d) regulating any matter, for the benefit of the general public, arising out of the object for which it has been created. Sl. Eligible persons Conditions No. A B C 43. National Credit Guarantee Trustee Nil. Company Limited, being a company established and wholly financed by the Central Government for the purposes of operating credit guarantee funds established and wholly financed by the Central Government. 44. A credit guarantee fund established Nil. and wholly financed by the Central Government and managed by the National Credit Guarantee Trustee Company Limited. 45. Credit Guarantee Fund Trust for Nil. Micro and Small Enterprises, being a trust created by the Central Gov- ernment and the Small Industries Development Bank of India estab- lished under section 3(1) of the Small Industries Development Bank of India Act, 1989 (39 of 1989). 46. An infrastructure debt fund. Such fund is set up as per the guidelines issued by the Central Government, by notification. 47. Aninstitutionestablishedforfinancing Such exclusion from total income the infrastructure and development is for ten consecutive tax years, set up under an Act of Parliament. beginning from the tax year in which such institution is set up and such institution is notified by the Central Government. 48. A developmental financing institu- (a) Such institution is notified by tion, licensed by the Reserve Bank the Central Government; of India under an Act of Parliament (b) exclusion of such income from referred to against serial number 47. the total income is for five con- secutive tax years beginning from the tax year in which the developmental financing insti- tution is set up; and (c) the Central Government may, by notification extend the pe- riod of exclusion for a further period, not exceeding five more Sl. Eligible persons Conditions No. A B C consecutive tax years, subject to fulfilment of such conditions as specified in the said notifi- cation. [49. New Development Bank. 43 Such exemption shall be subject to furnishing of information in such form and manner, as may be prescribed.] Note 1.—For the purposes of Sl. No. 3, the expression “Controller of Insurance” shall have the same meaning as assigned to it in section 2(5B) of the Insurance Act, 1938 (4 of 1938). Note 2.—For the purposes of Sl. No. 4, the expression “khadi” and “village industries” shall have the meanings respectively assigned to them in the Khadi and Village Industries Com- mission Act, 1956 (61 of 1956). Note 3.—For the purposes of Sl. No. 21, the expression “public financial institution” shall have the same meaning as assigned to it in section 2(72) of the Companies Act, 2013 (18 of 2013). Note 4.—For the purposes of Sl. No. 29,–– (a) “Scheduled Castes” and “Scheduled Tribes” shall have the meanings respectively assigned to them in article 366(24) or (25) of the Constitution; (b) “backward classes” means such classes of citizens, other than the Scheduled Castes and the Scheduled Tribes, as may be notified by the Central Government or any State Government. Note 5.—For the purposes of Sl. No. 30, the expression “minority community” means a com- munity notified as such by the Central Government. Note 6.—For the purposes of Sl. No. 31, the expression “ex-servicemen” means persons— (i) who have served in any rank, whether as combatant or non-combatant; (ii) in the armed forces of the Union or armed forces of the Indian States before the commencement of the Constitution (but excluding the Assam Rifles, Defence Security Corps, General Reserve Engineering Force, Lok Sahayak Sena, Jammu and Kashmir Militia and Territorial Army); (iii) for a continuous period of not less than six months after attestation; (iv) who have been released, otherwise than by way of dismissal or discharge on account of misconduct or inefficiency; and (v) includes their wife, children, father, mother, minor brother, widowed daughter and widowed sister, wholly dependent upon such ex- servicemen, immediately before their death or incapacitation, in case of deceased or incapacitated ex-servicemen.

SCHEDULE VIII [See section 12] INCOME NOT TO BE INCLUDED IN THE TOTAL INCOME OF POLITICAL PARTIES AND ELECTORAL TRUSTS In computing the total income of a tax year of any eligible person, being a polit- ical party or an electoral trust, as mentioned in column C of the Table below, the income mentioned in column B of the said Table shall not be included, subject to the conditions mentioned in column D of the said Table, and the expressions used in columns B to D of the said Table, shall have the meanings respectively assigned to them in the Note below the said Table: TABLE Sl. Income not to be Eligible persons Conditions No. included in total income A B C D 1. Any income which A political party (a) Such political party keeps is chargeable un- registered under and maintains such books of der the head “In- section 29A of the account and other documents come from house Representation as would enable the Assessing property” or “In- of the People Act, Officer to properly deduce its come from other 1951 (43 of 1951). income therefrom; sources” or “Cap- (b) in respect of each such volun- ital gains” or any tary contribution other than income by way of contribution by way of elector- voluntary contri- al bond in excess of ` 20,000, butions received such political party keeps and from any person. maintains a record of such contribution and the name and address of the person who has made such contribution; (c) the accounts of such political party are audited by an ac- countant; (d) no donation exceeding ` 2,000 is received by such political party otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed or through electoral bond; (e) the treasurer of such political party or any other person au- thorised by that political party in this behalf submits a report under section 29C(3) of the Representation of the People Act, 1951 (43 of 1951) for such tax year; and Sl. Income not to be Eligible persons Conditions No. included in total income A B C D (f) such political party furnishes a return of income for the tax year as per the provisions of section 263(1)(a)(iii) and 263(2) on or before the due date referred to in section 263(1)(c). 2. Any voluntary An electoral trust. (a) Such electoral trust distrib- contributions re- utes to any political party, ceived. registered under section 29A of the Representation of the People Act, 1951 (43 of 1951), during the said tax year, 95% of the aggregate donations received by it during the said tax year along with the sur- plus, if any, brought forward from any earlier tax year; and (b) such electoral trust functions as per the rules made by the Central Government. Note.—For the purposes of this Schedule, “electoral bond” means a bond referred to in the Explanation to section 31(3) of the Reserve Bank of India Act, 1934 (2 of 1934).