|
CHAPTER III :
INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME
SECTION 10. Incomes not included in total income.
In computing the total income of a previous year of any
person, any income falling within any of the following
clauses shall not be included—
(1) agricultural income ;
(2) subject to the provisions of sub-section (2) of section
64, any sum received by an individual as a member of a
Hindu undivided family, where such sum has been paid out of
the income of the family, or, in the case of any impartible
estate, where such sum has been paid out of the income of
the estate belonging to the family ;
(2A) in the case of a person being a partner of a firm
which is separately assessed as such, his share in the
total income of the firm.
Explanation.—For the purposes of this clause, the share of
a partner in the total income of a firm separately assessed
as such shall, notwithstanding anything contained in any
other law, be an amount which bears to the total income of
the firm the same proportion as the amount of his share in
the profits of the firm in accordance with the partnership
deed bears to such profits ;]
(4) (i) in the case of a non-resident, any income by way of
interest on such securities or bonds as the Central
Government may, by notification in the Official Gazette,
specify in this behalf, including income by way of premium
on the redemption of such bonds :
Provided that the Central Government shall not specify, for
the purposes of this sub-clause, such securities or bonds
on or after the 1st day of June, 2002;
(ii) in the case of an individual, any income by way of
interest on moneys standing to his credit in a Non-Resident
(External) Account in any bank in India in accordance with
the Foreign Exchange Regulation Act, 1973 (46 of 1973), and
the rules made thereunder :
Provided that such individual is a person resident outside
India as defined in *clause (q) of section 2 of the said
Act or is a person who has been permitted by the Reserve
Bank of India to maintain the aforesaid Account
(4B) in the case of an individual, being a citizen of India
or a person of Indian origin, who is a non-resident, any
income from interest on such savings certificates issued
before the 1st day of June, 2002 by the Central Government
as that Government may, by notification in the Official
Gazette, specify in this behalf :
Provided that the individual has subscribed to such
certificates in convertible foreign exchange remitted from
a country outside India in accordance with the provisions
of the Foreign Exchange Regulation Act, 1973 (46 of 1973),
and any rules made thereunder.
Explanation.—For the purposes of this clause,—
(a) a person shall be deemed to be of Indian origin if he,
or either of his parents or any of his grandparents, was
born in undivided India ;
(b) "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 Regulation Act, 1973 (46 of 1973), and
any rules made thereunder ;
(5) in the case of an individual, the value of any travel
concession or assistance received by, or due to, him,—
(a) from his employer for himself and his family, in
connection with his proceeding on leave to any place in
India ;
(b) from his employer or former employer for himself and
his family, in connection with his proceeding to any place
in India after retirement from service or after the
termination of his service,
subject to such conditions as may be prescribed (including
conditions as to number of journeys and the amount which
shall be exempt per head) having regard to the travel
concession or assistance granted to the employees of the
Central Government :
Provided that the amount exempt under this clause shall in
no case exceed the amount of expenses actually incurred for
the purpose of such travel.
Explanation.—For the purposes of this clause, "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;
(5A) [Omitted by the Finance (No. 2) Act, 1998, w.e.f.
1-4-1999;]
(5B) [Omitted by the Finance Act, 2002, w.e.f. 1-4-2003;]
(6) in the case of an individual who is not a citizen of
India,—
(ii) the remuneration received by him as an official, by
whatever name called, of an embassy, high commission,
legation, commission, consulate or the trade representation
of a foreign State, or as a member of the staff of any of
these officials, for service in such capacity :
Provided that the remuneration received by him as a trade
commissioner or other official representative in India of
the Government of a foreign State (not holding office as
such in an honorary capacity), or as a member of the staff
of any of those officials, shall be exempt only if the
remuneration of the corresponding officials or, as the case
may be, members of the staff, if any, of the Government
resident for similar purposes in the country concerned
enjoys a similar exemption in that country :
Provided further that such members of the staff are
subjects of the country represented and are not engaged in
any business or profession or employment in India otherwise
than as members of such staff ;(ii) to (v) [Sub-clause (ii)
substituted for sub-clauses (ii) to (v) by the Finance Act,
1988, w.e.f. 1-4-1989;]
(vi) the remuneration received by him as an employee of a
foreign enterprise for services rendered by him during his
stay in India, provided the following conditions are
fulfilled—
(a) the foreign enterprise is not engaged in any trade or
business in India ;
(b) his stay in India does not exceed in the aggregate a
period of ninety days in such previous year ; and
(c) such remuneration is not liable to be deducted from the
income of the employer chargeable under this Act ;
(via) [Omitted by the Finance (No. 2) Act, 1998, w.e.f.
1-4-1999;]
(vii) [Omitted by the Finance Act, 1993, w.e.f. 1-4-1993;]
(viia) [Omitted by the Finance (No. 2) Act, 1998, w.e.f.
1-4-1999;]
(viii) any income chargeable under the head "Salaries"
received by or due to any such individual being a
non-resident as remuneration for services rendered in
connection with his employment on a foreign ship where his
total stay in India does not exceed in the aggregate a
period of ninety days in the previous year ;
(ix) [Omitted by the Finance (No. 2) Act, 1998, w.e.f.
1-4-1999;]
(x) [Omitted by the Finance (No. 2) Act, 1998, w.e.f.
1-4-1999;]
(xi) the remuneration received by him as an employee of the
Government of a foreign State during his stay in India in
connection with his training in any establishment or office
of, or in any undertaking owned by,—
(i) the Government ; or
(ii) any company in which the entire paid-up share capital
is held by the Central Government, or any State Government
or Governments, or partly by the Central Government and
partly by one or more State Governments ; or
(iii) any company which is a subsidiary of a company
referred to in item (ii) ; or
(iv) any corporation established by or under a Central,
State or Provincial Act ; or
(v) any society registered under the Societies Registration
Act, 1860 (14 of 1860), or under any other corresponding
law for the time being in force and wholly financed by the
Central Government, or any State Government or State
Governments, or partly by the Central Government and partly
by one or more State Governments ;
(6A) where in the case of a foreign company deriving income
by way of royalty or fees for technical services received
from Government or an Indian concern in pursuance of an
agreement made by the foreign company with Government or
the Indian concern after the 31st day of March, 1976 but
before the 1st day of June, 2002 and,—
(a) where the agreement relates to a matter included in the
industrial policy, for the time being in force, of the
Government of India, such agreement is in accordance with
that policy ; and
(b) in any other case, the agreement is approved by the
Central Government,
the tax on such income is payable, under the terms of the
agreement, by Government or the Indian concern to the
Central Government, the tax so paid.
Explanation.—For the purposes of this clause and clause
(6B),—
(a) "fees for technical services" shall have the same
meaning as in Explanation 2 to clause (vii) of sub-section
(1) of section 9 ;
(b) "foreign company" shall have the same meaning as in
section 80B ;
(c) "royalty" shall have the same meaning as in Explanation
2 to clause (vi) of sub-section (1) of section 9;
(6B) where in the case of a non-resident (not being a
company) or of a foreign company deriving income (not being
salary, royalty or fees for technical services) from
Government or an Indian concern in pursuance of an
agreement entered into before the 1st day of June, 2002 by
the Central Government with the Government of a foreign
State or an international organisation, the tax on such
income is payable by Government or the Indian concern to
the Central Government under the terms of that agreement or
any other related agreement approved before that date by
the Central Government, the tax so paid ;
(6BB) where in the case of the Government of a foreign
State or a foreign enterprise deriving income from an
Indian company engaged in the business of operation of
aircraft, as a consideration of acquiring an aircraft or an
aircraft engine (other than payment for providing spares,
facilities or services in connection with the operation of
leased aircraft) on lease under an agreement entered into
after the 31st day of March, 1997 but before the 1st day of
April, 1999, or entered into after the 31st day of March,
2007 and approved by the Central Government in this behalf
and the tax on such income is payable by such Indian
company under the terms of that agreement to the Central
Government, the tax so paid.
Explanation.—For the purposes of this clause, the
expression "foreign enterprise" means a person who is a
non-resident;
(6C) any income arising to such foreign company, as the
Central Government may, by notification in the Official
Gazette, specify in this behalf, by way of royalty or fees
for technical services received in pursuance of an
agreement entered into with that Government for providing
services in or outside India in projects connected with
security of India ;
[(6D) any income arising to a non-resident, not being a
company, or a foreign company, by way of royalty from, or
fees for technical services rendered in or outside India
to, the National Technical Research Organisation;]
(7) any allowances or perquisites paid or allowed as such
outside India by the Government to a citizen of India for
rendering service outside India ;
(8) in the case of an individual who is assigned to duties
in India in connection with any co-operative technical
assistance programmes and projects in accordance with an
agreement entered into by the Central Government and the
Government of a foreign State (the terms whereof provide
for the exemption given by this clause)—
(a) the remuneration received by him directly or indirectly
from the Government of that foreign State for such duties,
and
(b) any other income of such individual which accrues or
arises outside India, and is not deemed to accrue or arise
in India, in respect of which such individual is required
to pay any income or social security tax to the Government
of that foreign State ;
(8A) in the case of a consultant—
(a) any remuneration or fee received by him or it, directly
or indirectly, out of the funds made available to an
international organisation [hereafter referred to in this
clause and clause (8B) as the agency] under a technical
assistance grant agreement between the agency and the
Government of a foreign State ; and
(b) any other income which accrues or arises to him or it
outside India, and is not deemed to accrue or arise in
India, in respect of which such consultant is required to
pay any income or social security tax to the Government of
the country of his or its origin.
Explanation.—In this clause, "consultant" means—
(i) any individual, who is either not a citizen of India
or, being a citizen of India, is not ordinarily resident in
India ; or
(ii) any other person, being a non-resident,
engaged by the agency for rendering technical services in
India in connection with any technical assistance programme
or project, provided the following conditions are
fulfilled, namely :—
(1) the technical assistance is in accordance with an
agreement entered into by the Central Government and the
agency ; and
(2) the agreement relating to the engagement of the
consultant is approved by the prescribed authority for the
purposes of this clause ;
(8B) in the case of an individual who is assigned to duties
in India in connection with any technical assistance
programme and project in accordance with an agreement
entered into by the Central Government and the agency—
(a) the remuneration received by him, directly or
indirectly, for such duties from any consultant referred to
in clause (8A) ; and
(b) any other income of such individual which accrues or
arises outside India, and is not deemed to accrue or arise
in India, in respect of which such individual is required
to pay any income or social security tax to the country of
his origin, provided the following conditions are
fulfilled, namely :—
(i) the individual is an employee of the consultant
referred to in clause (8A) and is either not a citizen of
India or, being a citizen of India, is not ordinarily
resident in India ; and
(ii) the contract of service of such individual is approved
by the prescribed authority before the commencement of his
service ;
(9) the income of any member of the family of any such
individual as is referred to in clause (8) or clause (8A)
or, as the case may be, clause (8B) accompanying him to
India, which accrues or arises outside India, and is not
deemed to accrue or arise in India, in respect of which
such member is required to pay any income or social
security tax to the Government of that foreign State or, as
the case may be, country of origin of such member;
(10) (i) any death-cum-retirement gratuity received under
the revised Pension Rules of the Central Government or, as
the case may be, the Central Civil Services (Pension)
Rules, 1972, or under any similar scheme applicable to the
members of the civil services of the Union or holders of
posts connected with defence or of civil posts under the
Union (such members or holders being persons not governed
by the said Rules) or to the members of the all-India
services or to the members of the civil services of a State
or holders of civil posts under a State or to the employees
of a local authority or any payment of retiring gratuity
received under the Pension Code or Regulations applicable
to the members of the defence services ;
(ii) any gratuity received under the Payment of Gratuity
Act, 1972 (39 of 1972), to the extent it does not exceed an
amount calculated in accordance with the provisions of
sub-sections (2) and (3) of section 4 of that Act ;
(iii) any other gratuity received by an employee on his
retirement or on his becoming incapacitated prior to such
retirement or on termination of his employment, or any
gratuity received by his widow, children or dependants on
his death, to the extent it does not, in either case,
exceed one-half month's salary for each year of completed
service, calculated on the basis of the average salary for
the ten months immediately preceding the month in which any
such event occurs, subject to such limit as the Central
Government may, by notification in the Official Gazette,
specify in this behalf having regard to the limit
applicable in this behalf to the employees of that
Government:
Provided that where any gratuities referred to in this
clause are received by an employee from more than one
employer in the same previous year, the aggregate amount
exempt from income-tax under this clause shall not exceed
the limit so specified :
Provided further that where any such gratuity or gratuities
was or were received in any one or more earlier previous
years also and the whole or any part of the amount of such
gratuity or gratuities was not included in the total income
of the assessee of such previous year or years, the amount
exempt from income-tax under this clause shall not exceed
the limit so specified] as reduced by the amount or, as the
case may be, the aggregate amount not included in the total
income of any such previous year or years.
Explanation.—In this clause, and in clause (10AA), "salary"
shall have the meaning assigned to it in clause (h) of rule
2 of Part A of the Fourth Schedule ;
(10A) (i) any payment in commutation of pension received
under the Civil Pensions (Commutation) Rules of the Central
Government or under any similar scheme applicable to the
members of the civil services of the Union or holders of
posts connected with defence or of civil posts under the
Union (such members or holders being persons not governed
by the said Rules) or to the members of the all-India
services or to the members of the defence services or to
the members of the civil services of a State or holders of
civil posts under a State or to the employees of a local
authority or a corporation established by a Central, State
or Provincial Act ;
(ii) any payment in commutation of pension received under
any scheme of any other employer, to the extent it does not
exceed—
(a) in a case where the employee receives any gratuity, the
commuted value of one-third of the pension which he is
normally entitled to receive, and
(b) in any other case, the commuted value of one-half of
such pension,
such commuted value being determined having regard to the
age of the recipient, the state of his health, the rate of
interest and officially recognised tables of mortality ;
(iii) any payment in commutation of pension received from a
fund under clause (23AAB) ;
(10AA) (i) any payment received by an employee of the
Central Government or a State Government as the cash
equivalent of the leave salary in respect of the period of
earned leave at his credit at the time of his retirement
whether on superannuation or otherwise ;
(ii) any payment of the nature referred to in sub-clause
(i) received by an employee, other than an employee of the
Central Government or a State Government, in respect of so
much of the period of earned leave at his credit at the
time of his retirement whether on superannuation or
otherwise as does not exceed ten months, calculated on the
basis of the average salary drawn by the employee during
the period of ten months immediately preceding his
retirement whether on superannuation or otherwise, subject
to such limit as the Central Government may, by
notification in the Official Gazette, specify in this
behalf having regard to the limit applicable in this behalf
to the employees of that Government :
Provided that where any such payments are received by an
employee from more than one employer in the same previous
year, the aggregate amount exempt from income-tax under
this sub-clause shall not exceed the limit so specified :
Provided further that where any such payment or payments
was or were received in any one or more earlier previous
years also and the whole or any part of the amount of such
payment or payments was or were not included in the total
income of the assessee of such previous year or years, the
amount exempt from income-tax under this sub-clause shall
not exceed the limit so specified, as reduced by the amount
or, as the case may be, the aggregate amount not included
in the total income of any such previous year or years.
Explanation.—For the purposes of sub-clause (ii),—
the entitlement to earned leave of an employee shall not
exceed thirty days for every year of actual service
rendered by him as an employee of the employer from whose
service he has retired ;
(10B) any compensation received by a workman under the
Industrial Disputes Act, 1947 (14 of 1947), or under any
other Act or Rules, orders or notifications issued
thereunder or under any standing orders or under any award,
contract of service or otherwise, at the time of his
retrenchment :
Provided that the amount exempt under this clause shall not
exceed—
(i) an amount calculated in accordance with the provisions
of clause (b) of section 25F of the Industrial Disputes
Act, 1947 (14 of 1947) ; or
(ii) such amount, not being less than fifty thousand
rupees, as the Central Government may, by notification in
the Official Gazette, specify in this behalf,
whichever is less :
Provided further that the preceding proviso shall not apply
in respect of any compensation received by a workman in
accordance with any scheme which the Central Government
may, having regard to the need for extending special
protection to the workmen in the undertaking to which such
scheme applies and other relevant circumstances, approve in
this behalf.
Explanation.—For the purposes of this clause—
(a) compensation received by a workman at the time of the
closing down of the undertaking in which he is employed
shall be deemed to be compensation received at the time of
his retrenchment ;
(b) compensation received by a workman, at the time of the
transfer (whether by agreement or by operation of law) of
the ownership or management of the undertaking in which he
is employed from the employer in relation to that
undertaking to a new employer, shall be deemed to be
compensation received at the time of his retrenchment if—
(i) the service of the workman has been interrupted by such
transfer ; or
(ii) the terms and conditions of service applicable to the
workman after such transfer are in any way less favourable
to the workman than those applicable to him immediately
before the transfer ; or
(iii) the new employer is, under the terms of such transfer
or otherwise, legally not liable to pay to the workman, in
the event of his retrenchment, compensation on the basis
that his service has been continuous and has not been
interrupted by the transfer ;
(c) the expressions "employer" and "workman" shall have the
same meanings as in the Industrial Disputes Act, 1947 (14
of 1947);
(10BB) any payments made under the Bhopal Gas Leak Disaster
(Processing of Claims) Act, 1985 (21 of 1985), and any
scheme framed thereunder except payment made to any
assessee in connection with the Bhopal Gas Leak Disaster to
the extent such assessee has been allowed a deduction under
this Act on account of any loss or damage caused to him by
such disaster ;
(10BC) any amount received or receivable from the Central
Government or a State Government or a local authority by an
individual or his legal heir by way of compensation on
account of any disaster, except the amount received or
receivable to the extent such individual or his legal heir
has been allowed a deduction under this Act on account of
any loss or damage caused by such disaster.
Explanation.—For the purposes of this clause, the
expression "disaster" shall have the meaning assigned to it
under clause (d) of section 2of the Disaster Management
Act, 2005 (53 of 2005);
(10C) any amount receivedor receivable by an employee of—
(i) a public sector company ; or
(ii) any other company ; or
(iii) an authority established under a Central, State or
Provincial Act ; or
(iv) a local authority ; or
(v) a co-operative society ; or
(vi) a University established or incorporated by or under a
Central, State or Provincial Act and an institution
declared to be a University under section 3 of the
University Grants Commission Act, 1956 (3 of 1956) ; or
(vii) an Indian Institute of Technology within the meaning
of clause (g) of section 3of the Institutes of Technology
Act, 1961 (59 of 1961) ; or
(viia) any State Government; or
(viib) the Central Government; or
(viic) an institution, having importance throughout India
or in any State or States, as the Central Government may,
by notification in the Official Gazette, specify in this
behalf; or
(viii) such institute of management as the Central
Government may, by notification in the Official Gazette,
specify in this behalf,
on his voluntary retirement or termination of his service,
in accordance with any scheme or schemes of voluntary
retirement or in the case of a public sector company
referred to in sub-clause (i), a scheme of voluntary
separation, to the extent such amount does not exceed five
lakh rupees :
Provided that the schemes of the said companies or
authorities or societies or Universities or the Institutes
referred to in sub-clauses (vii) and (viii), as the case
may be, governing the payment of such amount are framed in
accordance with such guidelines (including inter alia
criteria of economic viability) as may be prescribed:
Provided further that where exemption has been allowed to
an employee under this clause for any assessment year, no
exemption thereunder shall be allowed to him in relation to
any other assessment year :
Provided also that where any relief has been allowed to an
assessee under section 89 for any assessment year in
respect of any amount received or receivable on his
voluntary retirement or termination of service or voluntary
separation, no exemption under this clause shall be allowed
to him in relation to such, or any other, assessment year;
(10CC) in the case of an employee, being an individual
deriving income in the nature of a perquisite, not provided
for by way of monetary payment, within the meaning of
clause (2) of section 17, the tax on such income actually
paid by his employer, at the option of the employer, on
behalf of such employee, notwithstanding anything contained
in section 200 of the Companies Act, 1956 (1 of 1956);
(10D) any sum received under a life insurance policy,
including the sum allocated by way of bonus on such policy,
other than—
(a) any sum received under sub-section (3) of section 80DD
or sub-section (3) of section 80DDA; or
(b) any sum received under a Keyman insurance policy; or
(c) any sum received under an insurance policy issued on or
after the 1st day of April, 2003 but on or before the 31st
day of March, 2012 in respect of which the premium payable
for any of the years during the term of the policy exceeds
twenty per cent of the actual capital sum assured ; or
The following sub-clause (d) shall be inserted after
sub-clause (c) of clause (10D) of section 10 by the Finance
Act, 2012, w.e.f. 1-4-2013 :
(d) any sum received under an insurance policy issued on or
after the 1st day of April, 2012 in respect of which the
premium payable for any of the years during the term of the
policy exceeds fifteen per cent of the actual capital sum
assured:
Provided that the provisions of this sub-clause shall not
apply to any sum received on the death of a person:
Provided further that for the purpose of calculating the
actual capital sum assured under this sub-clause, effect
shall be given to the Explanation to sub-section (3) of
section 80C or the Explanation to sub-section (2A) of
section 88, as the case may be
Provided also that where the policy, issued on or after the
1st day of April, 2013, is for insurance on life of any
person, who is—
(i) a person with disability or a person with severe
disability as referred to in section 80U; or
(ii) suffering from disease or ailment as specified in the
rules made under section 80DDB
Explanation.—For the purposes of this clause, "Keyman
insurance policy" means a life insurance policy taken by a
person on the life of another person who is or was the
employee of the first-mentioned person or is or was
connected in any manner whatsoever with the business of the
first-mentioned person and includes such policy which has
been assigned to a person, at any time during the term of
the policy, with or without any consideration ;
The following Explanation 2 shall be inserted after
renumbered Explanation 1 to clause (10D) of section 10 by
the Finance Act, 2012, w.e.f. 1-4-2013 :
Explanation 2.—For the purposes of sub-clause (d), the
expression "actual capital sum assured" shall have the
meaning assigned to it in the Explanation to sub-section
(3A) of section 80C;
(11) any payment from a provident fund to which the
Provident Funds Act, 1925 (19 of 1925), applies or from any
other provident fund set up by the Central Government and
notified by it in this behalf in the Official Gazette;
(11A) any payment from an account, opened in
accordance with the Sukanya Samriddhi Account Rules, 2014
made under the Government Savings Bank Act, 1873;”
(12) the accumulated balance due and becoming payable to an
employee participating in a recognised provident fund, to
the extent provided in rule 8 of Part A of the Fourth
Schedule ;
(12A) any payment from the National Pension System Trust to
an 10[assessee] on closure of his account or on
his opting out of the pension scheme referred to in section
80CCD, to the extent it does not exceed forty per cent. of
the total amount payable to him at the time of such closure
or his opting out of the scheme
(12B) any payment from the National Pension System Trust to
an employee under the pension scheme referred to in section
80CCD, on partial withdrawal made out of his account in
accordance with the terms and conditions, specified under
the Pension Fund Regulatory and Development Authority Act,
2013 and the regulations made thereunder, to the extent it
does not exceed twentyfive per cent. of the amount of
contributions made by him;
(13) any payment from an approved superannuation fund made—
(i) on the death of a beneficiary ; or
(ii) 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 incapacitated prior to such retirement ; or
Provided that any payment in lieu of or in
commutation of an annuity purchased out of contributions
made on or after the 1st day of April, 2016, where it
exceeds forty per cent. of the annuity, shall be taken into
account in computing the total income; or
(iii) by way of refund of contributions on the death of a
beneficiary ;or
(iv) by way of refund of contributions to an employee 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
(the word "thereon" applicable upto 31st March, 2017)
(v) by way of transfer to the account of the
employee under a pension scheme referred to in section
80-CCD and notified by the Central Government.
(13A) any special allowance specifically granted to an
assessee by his employer to meet expenditure actually
incurred on payment of rent (by whatever name called) in
respect of residential accommodation occupied by the
assessee, to such extent as may be prescribedhaving regard
to the area or place in which such accommodation is situate
and other relevant considerations.
Explanation.—For the removal of doubts, it is hereby
declared that nothing contained in this clause shall apply
in a case where—
(a) the residential accommodation occupied by the assessee
is owned by him ; or
(b) the assessee has not actually incurred expenditure on
payment of rent (by whatever name called) in respect of the
residential accommodation occupied by him ;
(14) (i) any such special allowance or benefit, not being
in the nature of a perquisite within the meaning of clause
(2) of section 17, specifically granted to meet expenses
wholly, necessarily and exclusively incurred in the
performance of the duties of an office or employment of
profit, as may be prescribed], to the extent to which such
expenses are actually incurred for that purpose ;
(ii) any such allowance granted to the assessee either to
meet his personal expenses at the place where the duties of
his office or employment of profit are ordinarily performed
by him or at the place where he ordinarily resides, or to
compensate him for the increased cost of living, as may be
prescribed and to the extent as may be prescribed:
Provided that nothing in sub-clause (ii) shall apply to any
allowance in the nature of personal allowance granted to
the assessee to remunerate or compensate him for performing
duties of a special nature relating to his office or
employment unless such allowance is related to the place of
his posting or residence ;
(14A) [***]
(15) (i) income by way of interest, premium on redemption
or other payment on such securities, bonds, annuity
certificates, savings certificates, other certificates
issued by the Central Government and deposits as the
Central Government may, by notification in the Official
Gazette, specify in this behalf, subject to such conditions
and limits as may be specified in the said notification ;
(iib) in the case of an individual or a Hindu undivided
family, interest on such Capital Investment Bonds as the
Central Government may, by notification in the Official
Gazette, specify in this behalf :
Provided that the Central Government shall not specify, for
the purposes of this sub-clause, such Capital Investment
Bonds on or after the 1st day of June, 2002;
(iic) in the case of an individual or a Hindu undivided
family, interest on such Relief Bonds as the Central
Government may, by notification in the Official Gazette,
specify in this behalf ;
(iid) interest on such bonds, as the Central Government
may, by notification in the Official Gazette, specify,
arising to—
(a) a non-resident Indian, being an individual owning the
bonds ; or
(b) any individual owning the bonds by virtue of being a
nominee or survivor of the non-resident Indian ; or
(c) any individual to whom the bonds have been gifted by
the non-resident Indian :
Provided that the aforesaid bonds are purchased by a
non-resident Indian in foreign exchange and the interest
and principal received in respect of such bonds, whether on
their maturity or otherwise, is not allowable to be taken
out of India :
Provided further that where an individual, who is a
non-resident Indian in any previous year in which the bonds
are acquired, becomes a resident in India in any subsequent
year, the provisions of this sub-clause shall continue to
apply in relation to such individual :
Provided also that in a case where the bonds are encashed
in a previous year prior to their maturity by an individual
who is so entitled, the provisions of this sub-clause shall
not apply to such individual in relation to the assessment
year relevant to such previous year :
Provided also that the Central Government shall not
specify, for the purposes of this sub-clause, such bonds on
or after the 1st day of June, 2002.
Explanation.—For the purposes of this sub-clause, the
expression "non-resident Indian" shall have the meaning
assigned to it in clause (e) of section 115C;
(iii) interest on securities held by the Issue Department
of the Central Bank of Ceylon constituted under the Ceylon
Monetary Law Act, 1949;
(iiia) interest payable to any bank incorporated in a
country outside India and authorised to perform central
banking functions in that country on any deposits made by
it, with the approval of the Reserve Bank of India, with
any scheduled bank.
Explanation.—For the purposes of this sub-clause,
"scheduled bank" shall have the meaning assigned to it in
clause (ii) of the Explanation to clause (viia) of
sub-section (1) of section 36;
(iiib) interest payable to the Nordic Investment Bank,
being a multilateral financial institution constituted by
the Governments of Denmark, Finland, Iceland, Norway and
Sweden, on a loan advanced by it to a project approved by
the Central Government in terms of the Memorandum of
Understanding entered into by the Central Government with
that Bank on the 25th day of November, 1986;
(iiic) interest payable to the European Investment Bank, on
a loan granted by it in pursuance of the
framework-agreement for financial co-operation entered into
on the 25th day of November, 1993 by the Central Government
with that Bank;
(iv) interest payable—
(a) by Government or a local authority on moneys borrowed
by it before the 1st day of June, 2001 from, or debts owed
by it before the 1st day of June, 2001 to, sources outside
India;
(b) by an industrial undertaking in India on moneys
borrowed by it under a loan agreement entered into before
the 1st day of June, 2001 with any such financial
institution in a foreign country as may be approved in this
behalf by the Central Government by general or special
order ;
(c) by an industrial undertaking in India on any moneys
borrowed or debt incurred by it before the 1st day of June,
2001 in a foreign country in respect of the purchase
outside India of raw materials or components or capital
plant and machinery, to the extent to which such interest
does not exceed the amount of interest calculated at the
rate approved by the Central Government in this behalf,
having regard to the terms of the loan or debt and its
repayment.
Explanation 1.—For the purposes of this item, "purchase of
capital plant and machinery" includes the purchase of such
capital plant and machinery under a hire-purchase agreement
or a lease agreement with an option to purchase such plant
and machinery.
Explanation 2.—For the removal of doubts, it is hereby
declared that the usance interest payable outside India by
an undertaking engaged in the business of ship-breaking in
respect of purchase of a ship from outside India shall be
deemed to be the interest payable on a debt incurred in a
foreign country in respect of the purchase outside India;
(d) by the Industrial Finance Corporation of India
established by the Industrial Finance Corporation Act, 1948
(15 of 1948), or the Industrial Development Bank of India
established under the Industrial Development Bank of India
Act, 1964 (18 of 1964), or the Export-Import Bank of India
established under the Export-Import Bank of India Act, 1981
(28 of 1981), or the National Housing Bank established
under section 3 of the National Housing Bank Act, 1987 (53
of 1987),or the Small Industries Development Bank of India
established under section 3 of the Small Industries
Development Bank of India Act, 1989 (39 of 1989), or the
Industrial Credit and Investment Corporation of India a
company formed and registered under the Indian Companies
Act, 1913 (7 of 1913), on any moneys borrowed by it from
sources outside India before the 1st day of June, 2001, to
the extent to which such interest does not exceed the
amount of interest calculated at the rate approved by the
Central Government in this behalf, having regard to the
terms of the loan and its repayment;
(e) by any other financial institution established in India
or a banking company to which the Banking Regulation Act,
1949 (10 of 1949), applies (including any bank or banking
institution referred to in section 51 of that Act), on any
moneys borrowed by it from sources outside India before the
1st day of June, 2001 under a loan agreement approved by
the Central Government where the moneys are borrowed either
for the purpose of advancing loans to industrial
undertakings in India for purchase outside India of raw
materials or capital plant and machinery or for the purpose
of importing any goods which the Central Government may
consider necessary to import in the public interest, to the
extent to which such interest does not exceed the amount of
interest calculated at the rate approved by the Central
Government in this behalf, having regard to the terms of
the loan and its repayment;
(f) by an industrial undertaking in India on any moneys
borrowed by it in foreign currency from sources outside
India under a loan agreement approved by the Central
Government before the 1st day of June, 2001 having regard
to the need for industrial development in India, to the
extent to which such interest does not exceed the amount of
interest calculated at the rate approved by the Central
Government in this behalf, having regard to the terms of
the loan and its repayment;
(fa) by a scheduled bank to a non-resident or to a person
who is not ordinarily resident within the meaning of
sub-section (6) of section 6 on deposits in foreign
currency where the acceptance of such deposits by the bank
is approved by the Reserve Bank of India.
Explanation.—For the purposes of this item, the expression
"scheduled bank" means the State Bank of India constituted
under the State Bank of India Act, 1955 (23 of 1955), a
subsidiary bank as defined in the State Bank of India
(Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding
new bank constituted under section 3 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act,
1970 (5 of 1970), or under section 3 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act,
1980 (40 of 1980), or any other bank being a bank included
in the Second Schedule to the Reserve Bank of India Act,
1934 (2 of 1934), but does not include a co-operative
bank;]
(g) by a public company formed and registered in India with
the main object of carrying on the business of providing
long-term finance for construction or purchase of houses in
India for residential purposes, being a company eligible
for deduction under clause (viii) of sub-section (1) of
section 36 on any moneys borrowed by it in foreign currency
from sources outside India under a loan agreement approved
by the Central Government before the 1st day of June,
2003], to the extent to which such interest does not exceed
the amount of interest calculated at the rate approved by
the Central Government in this behalf, having regard to the
terms of the loan and its repayment.
Explanation.—For the purposes of items (f), (fa) and (g),
the expression "foreign currency" shall have the meaning
assigned to it in the Foreign Exchange Regulation Act, 1973
(46 of 1973);
(h) by any public sector company in respect of such bonds
or debentures and subject to such conditions, including the
condition that the holder of such bonds or debentures
registers his name and the holding with that company, as
the Central Government may, by notification in the Official
Gazette, specify in this behalf;
(i) by Government on deposits made by an employee of the
Central Government or a State Government or a public sector
company, in accordance with such scheme as the Central
Government may, by notification in the Official Gazette,
frame in this behalf, out of the moneys due to him on
account of his retirement, whether on superannuation or
otherwise.
Explanation 1.—For the purposes of this sub-clause, the
expression "industrial undertaking" means any undertaking
which is engaged in—
(a) the manufacture or processing of goods; or
(aa) the manufacture of computer software or recording of
programme on any disc, tape, perforated media or other
information device; or
(b) the business of generation or distribution of
electricity or any other form of power; or
(ba) the business of providing telecommunication services;
or
(c) mining; or
(d) the construction of ships; or
(da) the business of ship-breaking; or
(e) the operation of ships or aircrafts or construction or
operation of rail systems.
Explanation 1A.—For the purposes of this sub-clause, the
expression "interest" shall not include interest paid on
delayed payment of loan or on default if it is in excess of
two per cent per annum over the rate of interest payable in
terms of such loan.
Explanation 2.—For the purposes of this clause, the
expression "interest" includes hedging transaction charges
on account of currency fluctuation;
(v) interest on—
(a) securities held by the Welfare Commissioner, Bhopal Gas
Victims, Bhopal, in the Reserve Bank's SGL Account No.
SL/DH 048;
(b) deposits for the benefit of the victims of the Bhopal
gas leak disaster held in such account, with the Reserve
Bank of India or with a public sector bank, as the Central
Government may, by notification in the Official Gazette,
specify, whether prospectively or retrospectively but in no
case earlier than the 1st day of April, 1994 in this
behalf.
Explanation.—For the purposes of this sub-clause, the
expression "public sector bank" shall have the meaning
assigned to it in the Explanation to clause (23D);
(vi) interest on Gold Deposit Bonds issued under the Gold
Deposit Scheme, 1999 notified by the Central Government or
deposit certificates issued under the Gold Monetisation
Scheme, 2015 .
(vii) interest on bonds—
(a) issued by a local authority or by a State Pooled
Finance Entity; and
(b) specified by the Central Government by notification in
the Official Gazette.
Explanation.—For the purposes of this sub-clause, the
expression "State Pooled Finance Entity" shall mean such
entity which is set up in accordance with the guidelines
for the Pooled Finance Development Scheme notified by the
Central Government in the Ministry of Urban Development;
(viii) any income by way of interest received by a
non-resident or a person who is not ordinarily resident, in
India on a deposit made on or after the 1st day of April,
2005, in an Offshore Banking Unitreferred to in clause (u)
of section 2 of the Special Economic Zones Act, 2005;
(15A) any payment made, by an Indian company engaged in the
business of operation of aircraft, to acquire an aircraft
or an aircraft engine (other than a payment for providing
spares, facilities or services in connection with the
operation of leased aircraft) on lease from the Government
of a foreign State or a foreign enterprise under an
agreement, not being an agreement entered into between the
1st day of April, 1997 and the 31st day of March, 1999, and
approved by the Central Government in this behalf :
Provided that nothing contained in this clause shall apply
to any such agreement entered into on or after the 1st day
of April, 2007.
Explanation.—For the purposes of this clause, the
expression "foreign enterprise" means a person who is a
non-resident;
(16) scholarships granted to meet the cost of education;
(17) any income by way of—
(i) daily allowance received by any person by reason of his
membership of Parliament or of any State Legislature or of
any Committee thereof;
(ii) any allowance received by any person by reason of his
membership of Parliament under the Members of Parliament
(Constituency Allowance) Rules, 1986;
(iii) any constituency allowance received by any person by
reason of his membership of any State Legislature under any
Act or rules made by that State Legislature;
(17A) any payment made, whether in cash or in kind,—
(i) in pursuance of any award instituted in the public
interest by the Central Government or any State Government
or instituted by any other body and approved by the Central
Government in this behalf; or
(ii) 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 the public interest;
(18) any income by way of—
(i) pension received by an individual who has been in the
service of the Central Government or State Government and
has been awarded "Param Vir Chakra" or "Maha Vir Chakra" or
"Vir Chakra" or such other gallantry award as the Central
Government may, by notification in the Official Gazette,
specify in this behalf;
(ii) family pension received by any member of the family of
an individual referred to in sub-clause (i).
Explanation.—For the purposes of this clause, the
expression "family" shall have the meaning assigned to it
in the Explanation to clause (5);
(18A) [Omitted by the Finance (No. 2) Act, 1998, w.e.f.
1-4-1999;]
(19) family pension received by the widow or children or
nominated heirs, as the case may be, of a member of the
armed forces (including para-military forces) of the Union,
where the death of such member has occurred in the course
of operational duties, in such circumstances and subject to
such conditions, as may be prescribed;
(19A) the annual value of any one palace in the occupation
of a Ruler, being a palace, the annual value whereof was
exempt from income-tax before the commencement of the
Constitution (Twenty-sixth Amendment) Act, 1971, by virtue
of the provisions of the Merged States (Taxation
Concessions) Order, 1949, or the Part B States (Taxation
Concessions) Order, 1950, or, as the case may be, the Jammu
and Kashmir (Taxation Concessions) Order, 1958:
Provided that for the assessment year commencing on the 1st
day of April, 1972, the annual value of every such palace
in the occupation of such Ruler during the relevant
previous year shall be exempt from income-tax;
(20) the income of a local authority which is chargeable
under the head "Income from house property", "Capital
gains" or "Income from other sources" or from a trade or
business carried on by it which accrues or arises from the
supply of a commodity or service (not being water or
electricity) within its own jurisdictional area or from the
supply of water or electricity within or outside its own
jurisdictional area.
Explanation.—For the purposes of this clause, the
expression "local authority" means—
(i) Panchayat as referred to in clause (d) of article 243
of the Constitution; or
(ii) Municipality as referred to in clause (e) of article
243P of the Constitution; or
(iii) Municipal Committee and District Board,
legally entitled to, or entrusted by the Government with,
the control or management of a Municipal or local fund; or
(iv) Cantonment Board as defined in section 3 of the
Cantonments Act, 1924 (2 of 1924);
(20A) [***]
(21) any income of a research association for the time
being approved for the purpose of clause (ii) or clause
(iii) of sub-section (1) of section 35:
Provided that the research association—
(a) applies its income, or accumulates it for application,
wholly and exclusively to the objects for which it is
established, and the provisions of sub-section (2) and
sub-section (3) of section 11 shall apply in relation to
such accumulation subject to the following modifications,
namely :—
(i) in sub-section (2),—
(1) the words, brackets, letters and figure "referred to in
clause (a) or clause (b) of sub-section (1) read with the
Explanation to that sub-section" shall be omitted;
(2) for the words "to charitable or religious purposes",
the words "for the purposes of scientific research or
research in social science or statistical research" shall
be substituted;
(3) the reference to "Assessing Officer" in clause (a)
thereof shall be construed as a reference to the
"prescribed authority" referred to in clause (ii) or clause
(iii) of sub-section (1) of section 35;
(ii) in sub-section (3), in clause (a), for the words
"charitable or religious purposes", the words "the purposes
of scientific research or research in social science or
statistical research" shall be substituted; and
(b) does not invest or deposit its funds, other than—
(i) any assets held by the research association where such
assets form part of the corpus of the fund of the
association as on the 1st day of June, 1973;
(ii) any assets (being debentures issued by, or on behalf
of, any company or corporation), acquired by the research
association before the 1st day of March, 1983;
(iii) any accretion to the shares, forming part of the
corpus of the fund mentioned in sub-clause (i), by way of
bonus shares allotted to the research association;
(iv) voluntary contributions received and maintained in the
form of jewellery, furniture or any other article as the
Board may, by notification in the Official Gazette,
specify,
for any period during the previous year otherwise than in
any one or more of the forms or modes specified in
sub-section (5) of section 11:
Provided further that the exemption under this clause shall
not be denied in relation to voluntary contribution, other
than voluntary contribution in cash or voluntary
contribution of the nature referred to in clause (b) of the
first proviso to this clause, subject to the condition that
such voluntary contribution is not held by the research
association, otherwise than in any one or more of the forms
or modes specified in sub-section (5) of section 11, after
the expiry of one year from the end of the previous year in
which such asset is acquired or the 31st day of March,
1992, whichever is later:
Provided also that nothing contained in this clause shall
apply in relation to any income of the research
association, being profits and gains of business, unless
the business is incidental to the attainment of its
objectives and separate books of account are maintained by
it in respect of such business:
Provided also that where the research association is
approved by the Central Government and subsequently that
Government is satisfied that—
(i) the research association has not applied its income in
accordance with the provisions contained in clause (a) of
the first proviso; or
(ii) the research association has not invested or deposited
its funds in accordance with the provisions contained in
clause (b) of the first proviso; or
(iii) the activities of the research association are not
genuine; or
(iv) the activities of the research association are not
being carried out in accordance with all or any of the
conditions subject to which such association was approved,
it may, at any time after giving a reasonable opportunity
of showing cause against the proposed withdrawal to the
concerned association, by order, withdraw the approval and
forward a copy of the order withdrawing the approval to
such association and to the Assessing Officer;
(22) [Omitted by the Finance (No. 2) Act, 1998, w.e.f.
1-4-1999;]
(22A) [Omitted by the Finance (No. 2) Act, 1998, w.e.f.
1-4-1999;]
(22B) any income of such news agency set up in India solely
for collection and distribution of news as the Central
Government may, by notification in the Official Gazette,
specify in this behalf:
Provided that the news agency applies its income or
accumulates it for application solely for collection and
distribution of news and does not distribute its income in
any manner to its members:
Provided further that any notification issued by the
Central Government under this clause shall, at any one
time, have effect for such assessment year or years, not
exceeding three assessment years (including an assessment
year or years commencing before the date on which such
notification is issued) as may be specified in the
notification:
Provided also that where the news agency has been
specified, by notification, by the Central Government and
subsequently that Government is satisfied that such news
agency has not applied or accumulated or distributed its
income in accordance with the provisions contained in the
first proviso, it may, at any time after giving a
reasonable opportunity of showing cause, rescind the
notification and forward a copy of the order rescinding the
notification to such agency and to the Assessing Officer;
(23) [Omitted by the Finance Act, 2002, w.e.f. 1-4-2003;]
(23A) any income (other than income chargeable under the
head "Income from house property" or any income received
for rendering any specific services or income by way of
interest or dividends derived from its investments) of an
association or institution established in India having as
its object the control, supervision, regulation or
encouragement of the profession of law, medicine,
accountancy, engineering or architecture or such other
profession as the Central Government may specify in this
behalf, from time to time, by notification in the Official
Gazette:
Provided that—
(i) the association or institution applies its income, or
accumulates it for application, solely to the objects for
which it is established; and
(ii) the association or institution is for the time being
approved for the purpose of this clause by the Central
Government by general or special order:]
Provided further that where the association or institution
has been approved by the Central Government and
subsequently that Government is satisfied that—
(i) such association or institution has not applied or
accumulated its income in accordance with the provisions
contained in the first proviso; or
(ii) the activities of the association or institution are
not being carried out in accordance with all or any of the
conditions subject to which such association or institution
was approved,
it may, at any time after giving a reasonable opportunity
of showing cause against the proposed withdrawal to the
concerned association or institution, by order, withdraw
the approval and forward a copy of the order withdrawing
the approval to such association or institution and to the
Assessing Officer
(23AA) any income received by any person on behalf of any
Regimental Fund or Non-Public Fund established by the armed
forces of the Union for the welfare of the past and present
members of such forces or their dependants;
(23AAA) any income received by any person on behalf of a
fund established, for such purposes as may be notified by
the Board in the Official Gazette, for the welfare of
employees or their dependants and of which fund such
employees are members if such fund fulfils the following
conditions, namely :—
(a) the fund—
(i) applies its income or accumulates it for application,
wholly and exclusively to 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
sub-section (5) of section 11;
(b) the fund is approved by the Commissioner in accordance
with the rules made in this behalf:
Provided that any such approval shall at any one time have
effect for such assessment year or years not exceeding
three assessment years as may be specified in the order of
approval;
(23AAB) any income of a fund, by whatever name called, set
up by the Life Insurance Corporation of India on or after
the 1st day of August, 1996 or any other insurer under a
pension scheme,—
(i) to which contribution is made by any person for the
purpose of receiving pension from such fund;
(ii) which is approved by the Controller of Insurance or
the Insurance Regulatory and Development Authority
established under sub-section (1) of section 3 of the
Insurance Regulatory and Development Authority Act, 1999
(41 of 1999), as the case may be.
Explanation.—For the purposes of this clause, the
expression "Controller of Insurance" shall have the meaning
assigned to it in clause (5B) of section 2 of the Insurance
Act, 1938 (4 of 1938);
(23B) any income of an institution constituted as a public
charitable trust or registered under the Societies
Registration Act, 1860 (21 of 1860), or under any law
corresponding to that Act in force in any part of India,
and existing solely for the development of khadi or village
industries or both, and not for purposes of profit, to the
extent such income is attributable to the business of
production, sale, or marketing, of khadi or products of
village industries:
Provided that—
(i) the institution applies its income, or accumulates it
for application, solely for the development of khadi or
village industries or both; and
(ii) the institution is, for the time being, approved for
the purpose of this clause by the Khadi and Village
Industries Commission:
Provided further that the Commission shall not, at any one
time, grant such approval for more than three assessment
years beginning with the assessment year next following the
financial year in which it is granted:
Provided also that where the institution has been approved
by the Khadi and Village Industries Commission and
subsequently that Commission is satisfied that—
(i) the institution has not applied or accumulated its
income in accordance with the provisions contained in the
first proviso; or
(ii) the activities of the institution are not being
carried out in accordance with all or any of the conditions
subject to which such institution was approved,
it may, at any time after giving a reasonable opportunity
of showing cause against the proposed withdrawal to the
concerned institution, by order, withdraw the approval and
forward a copy of the order withdrawing the approval to
such institution and to the Assessing Officer.
Explanation.—For the purposes of this clause,—
(i) "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);
(ii) "khadi" and "village industries" have the meanings
respectively assigned to them in that Act;
(23BB) any income of an authority (whether known as the
Khadi and Village Industries Board or by any other name)
established in a State by or under a State or Provincial
Act for the development of khadi or village industries in
the State.
Explanation.—For the purposes of this clause, "khadi" and
"village industries" have the meanings respectively
assigned to them in the Khadi and Village Industries
Commission Act, 1956 (61 of 1956);
(23BBA) any income of any body or authority (whether or not
a body corporate or corporation sole) established,
constituted or appointed by or under any Central, State or
Provincial Act which provides for the administration of any
one or more of the following, that is to say, public
religious or charitable trusts or endowments (including
maths, temples, gurdwaras, wakfs, churches, synagogues,
agiaries or other places of public religious worship) or
societies for religious or charitable purposes registered
as such under the Societies Registration Act, 1860 (21 of
1860), or any other law for the time being in force:
Provided that nothing in this clause shall be construed to
exempt from tax the income of any trust, endowment or
society referred to therein;
(23BBB) any income of the European Economic Community
derived in India by way of interest, dividends or capital
gains from investments made out of its funds under such
scheme as the Central Government may, by notification in
the Official Gazette, specify in this behalf.
Explanation.—For the purposes of this clause, "European
Economic Community" means the European Economic Community
established by the Treaty of Rome of 25th March, 1957;
(23BBC ) any income of the SAARC Fund for Regional Projects
set up by Colombo Declaration issued on the 21st day of
December, 1991 by the Heads of State or Government of the
Member Countries of South Asian Association for Regional
Cooperation established on the 8th day of December, 1985 by
the Charter of the South Asian Association for Regional
Cooperation;
(23BBD) any income of the Secretariat of the Asian
Organisation of the Supreme Audit Institutions registered
as "ASOSAI-SECRETARIAT" under the Societies Registration
Act, 1860 (21 of 1860) for ten previous years relevant to
the assessment years beginning on the 1st day of April,
2001 and ending on the 31st day of March, 2011];
(23BBE) any income of the Insurance Regulatory and
Development Authority established under sub-section (1) of
section 3 of the Insurance Regulatory and Development
Authority Act, 1999 (41 of 1999);
(23BBF) any income of the North-Eastern Development Finance
Corporation Limited, being a company formed and registered
under the Companies Act, 1956 (1 of 1956) :
Provided that in computing the total income of the
North-Eastern Development Finance Corporation Limited, the
amount to the extent of—
(i) twenty per cent of the total income for assessment year
beginning on the 1st day of April, 2006;
(ii) forty per cent of the total income for assessment year
beginning on the 1st day of April, 2007;
(iii) sixty per cent of the total income for assessment
year beginning on the 1st day of April, 2008;
(iv) eighty per cent of the total income for assessment
year beginning on the 1st day of April, 2009;
(v) one hundred per cent of the total income for assessment
year beginning on the 1st day of April, 2010 and any
subsequent assessment year or years,
shall be included in such total income;
(23BBG) any income of the Central Electricity Regulatory
Commission constituted under sub-section (1) of section 76
of the Electricity Act, 2003 (36 of 2003);
The following clause (23BBH) shall be inserted after clause
(23BBG) of section 10 by the Finance Act, 2012, w.e.f.
1-4-2013 :
(23BBH) any income of the Prasar Bharati (Broadcasting
Corporation of India) established under sub-section (1) of
section 3 of the Prasar Bharati (Broadcasting Corporation
of India) Act, 1990 (25 of 1990);
(23C) any income received by any person on behalf of—
(i) the Prime Minister's National Relief Fund; or
(ii) the Prime Minister's Fund (Promotion of Folk Art); or
(iii) the Prime Minister's Aid to Students Fund; or
(iiia) the National Foundation for Communal Harmony; or
(iiiaa) the Swachh Bharat Kosh, set up by the
Central Government; or
(iiiaaa) the Clean Ganga Fund, set up by the
Central Government; or”
(iiiaaaa) the Chief Minister’s Relief Fund or the
Lieutenant Governor’s Relief Fund in respect of any State
or Union territory as referred to in sub-clause (iiihf) of
clause (a) of sub-section (2) of section 80G; or
(iiiab) any university or other educational institution
existing solely for educational purposes and not for
purposes of profit, and which is wholly or substantially
financed by the Government; or
(iiiac) any hospital or other institution for the reception
and treatment of persons suffering from illness or mental
defectiveness or for the reception and treatment of persons
during convalescence or of persons requiring medical
attention or rehabilitation, existing solely for
philanthropic purposes and not for purposes of profit, and
which is wholly or substantially financed by the
Government; or
Explanation
.––For the purposes of sub-clauses (iiiab) and ( iiiac), any university or other educational
institution, hospital or other institution referred
therein, shall be considered as being substantially
financed by the Government for any previous year, if the
Government grant to such university or other educational
institution, hospital or other institution exceeds such
percentage of the total receipts including any voluntary
contributions, as may beprescribed, of such university or
other educational institution, hospital or other
institution, as the case may be, during the relevant
previous year.”;
(iiiad) any university or other educational institution
existing solely for educational purposes and not for
purposes of profit if the aggregate annual receipts of such
university or educational institution do not exceed the
amount of annual receipts as may be prescribed; or
(iiiae) any hospital or other institution for the reception
and treatment of persons suffering from illness or mental
defectiveness or for the reception and treatment of persons
during convalescence or of persons requiring medical
attention or rehabilitation, existing solely for
philanthropic purposes and not for purposes of profit, if
the aggregate annual receipts of such hospital or
institution do not exceed the amount of annual receipts as
may be prescribed; or
(iv) any other fund or institution established for
charitable purposes which may be approved by the prescribed
authority, having regard to the objects of the fund or
institution and its importance throughout India or
throughout any State or States; or
(v) any trust (including any other legal obligation) or
institution wholly for public religious purposes or wholly
for public religious and charitable purposes, which may be
approved by the prescribed authority, having regard to the
manner in which the affairs of the trust or institution are
administered and supervised for ensuring that the income
accruing thereto is properly applied for the objects
thereof;
(vi) any university or other educational institution
existing solely for educational purposes and not for
purposes of profit, other than those mentioned in
sub-clause (iiiab) or sub-clause (iiiad) and which may be
approved by the prescribed authority; or
(via) any hospital or other institution for the reception
and treatment of persons suffering from illness or mental
defectiveness or for the reception and treatment of persons
during convalescence or of persons requiring medical
attention or rehabilitation, existing solely for
philanthropic purposes and not for purposes of profit,
other than those mentioned in sub-clause (iiiac) or
sub-clause (iiiae) and which may be approved by the
prescribed authority :
Provided that the fund or trust or institution or any
university or other educational institution or any hospital
or other medical institution referred to in sub-clause (iv)
or sub-clause (v) or sub-clause (vi) or sub-clause (via)]
shall make an application in the prescribed form and manner
to the prescribed authority for the purpose of grant of the
exemption, or continuance thereof, under sub-clause (iv) or
sub-clause (v) or sub-clause (vi) or sub-clause (via) :
Provided further that the prescribed authority, before
approving any fund or trust or institution or any
university or other educational institution or any hospital
or other medical institution, under sub-clause (iv) or
sub-clause (v) or sub-clause (vi) or sub-clause (via), may
call for such documents (including audited annual accounts)
or information from the fund or trust or institution or any
university or other educational institution or any hospital
or other medical institution, as the case may be, as it
thinks necessary in order to satisfy itself about the
genuineness of the activities of such fund or trust or
institution or any university or other educational
institution or any hospital or other medical institution,
as the case may be, and the prescribed authority may also
make such inquiries as it deems necessary in this behalf:
Provided also that the fund or trust or institution or any
university or other educational institution or any hospital
or other medical institution referred to in sub-clause (iv)
or sub-clause (v) or sub-clause (vi) or sub-clause (via)]—
(a) applies its income, or accumulates it for application,
wholly and exclusively to the objects for which it is
established and in a case where more than fifteen per cent
of its income is accumulated on or after the 1st day of
April, 2002, the period of the accumulation of the amount
exceeding fifteen per cent of its income shall in no case
exceed five years; and
(b) does not invest or deposit its funds, other than—
(i) any assets held by the fund, trust or institution or
any university or other educational institution or any
hospital or other medical institution where such assets
form part of the corpus of the fund, trust or institution
or any university or other educational institution or any
hospital or other medical institution as on the 1st day of
June, 1973;
(ia) any asset, being equity shares of a public company,
held by any university or other educational institution or
any hospital or other medical institution where such assets
form part of the corpus of any university or other
educational institution or any hospital or other medical
institution as on the 1st day of June, 1998;
(ii) any assets (being debentures issued by, or on behalf
of, any company or corporation), acquired by the fund,
trust or institution or any university or other educational
institution or any hospital or other medical institution]
before the 1st day of March, 1983;
(iii) any accretion to the shares, forming part of the
corpus mentioned in sub-clause (i) and sub-clause (ia), by
way of bonus shares allotted to the fund, trust or
institution or any university or other educational
institution or any hospital or other medical institution ;
(iv) voluntary contributions received and maintained in the
form of jewellery, furniture or any other article as the
Board may, by notification in the Official Gazette,
specify, for any period during the previous year otherwise
than in any one or more of the forms or modes specified in
sub-section (5) of section 11:
Provided also that the exemption under sub-clause (iv) or
sub-clause (v) shall not be denied in relation to any funds
invested or deposited before the 1st day of April, 1989,
otherwise than in any one or more of the forms or modes
specified in sub-section (5) of section 11 if such funds do
not continue to remain so invested or deposited after the
30th day of March, 1993 :
Provided also that the exemption under sub-clause (vi) or
sub-clause (via) shall not be denied in relation to any
funds invested or deposited before the 1st day of June,
1998, otherwise than in any one or more of the forms or
modes specified in sub-section (5) of section 11 if such
funds do not continue to remain so invested or deposited
after the 30th day of March, 2001 :
Provided also that the exemption under sub-clause (iv) or
sub-clause (v) or sub-clause (vi) or sub-clause (via)]
shall not be denied in relation to voluntary contribution,
other than voluntary contribution in cash or voluntary
contribution of the nature referred to in clause (b) of the
third proviso to this sub-clause, subject to the condition
that such voluntary contribution is not held by the trust
or institution or any university or other educational
institution or any hospital or other medical institution],
otherwise than in any one or more of the forms or modes
specified in sub-section (5) of section 11, after the
expiry of one year from the end of the previous year in
which such asset is acquired or the 31st day of March,
1992, whichever is later:
Provided also that nothing contained in sub-clause (iv) or
sub-clause (v) or sub-clause (vi) or sub-clause (via)]
shall apply in relation to any income of the fund or trust
or institution or any university or other educational
institution or any hospital or other medical institution,
being profits and gains of business, unless the business is
incidental to the attainment of its objectives and separate
books of account are maintained by it in respect of such
business:
Provided also that any notification issued by the Central
Government under sub-clause (iv) or sub-clause (v), before
the date on which the Taxation Laws (Amendment) Bill, 2006
receives the assent of the President, shall, at any one
time, have effect for such assessment year or years, not
exceeding three assessment years (including an assessment
year or years commencing before the date on which such
notification is issued) as may be specified in the
notification:
Provided also that where an application under the first
proviso is made on or after the date on which the Taxation
Laws (Amendment) Bill, 2006 receives the assent of the
President, every notification under sub-clause (iv) or
sub-clause (v) shall be issued or approval under sub-clause
(iv) or sub-clause (v) or sub-clause (vi) or sub-clause
(via) shall be granted or an order rejecting the
application shall be passed within the period of twelve
months from the end of the month in which such application
was received:
Provided also that where the total income, of the fund or
trust or institution or any university or other educational
institution or any hospital or other medical institution
referred to in sub-clause (iv) or sub-clause (v) or
sub-clause (vi) or sub-clause (via), without giving effect
to the provisions of the said sub-clauses, exceeds the
maximum amount which is not chargeable to tax in any
previous year, such trust or institution or any university
or other educational institution or any hospital or other
medical institution shall get its accounts audited in
respect of that year by an accountant as defined in the
Explanation below sub-section (2) of section 288 and
furnish along with the return of income for the relevant
assessment year, the report of such audit in the prescribed
form duly signed and verified by such accountant and
setting forth such particulars as may be prescribed:
Provided also that any amount credited or paid out of
income of any fund or trust or institution or any
university or other educational institution or any hospital
or other medical institution referred to in sub-clause (iv)
or sub-clause (v) or sub-clause (vi) or sub-clause (via),
to any trust or institution registered under section 12AA,
being voluntary contribution made with a specific direction
that they shall form part of the corpus of the trust or
institution, shall not be treated as application of income
to the objects for which such fund or trust or institution
or university or educational institution or hospital or
other medical institution, as the case may be, is
established:;( inserted w.e.f 1st day of April, 2018,)
Provided also
that for the purposes of determining the amount of
application under item (a) of the third proviso, the
provisions of sub-clause (ia) of clause (a) of section 40
and sub-sections (3) and (3A) of section 40A, shall,
mutatis mutandis, apply as they apply in computing the
income chargeable under the head "Profits and gains of
business or profession":
Provided also that any amount of donation received by the
fund or institution in terms of clause (d) of sub-section
(2) of section 80G [in respect of which accounts of income
and expenditure have not been rendered to the authority
prescribed under clause (v) of sub-section (5C) of that
section, in the manner specified in that clause, or] which
has been utilised for purposes other than providing relief
to the victims of earthquake in Gujarat or which remains
unutilised in terms of sub-section (5C) of section 80G and
not transferred to the Prime Minister's National Relief
Fund on or before the 31st day of March, 2004 shall be
deemed to be the income of the previous year and shall
accordingly be charged to tax:
Provided also that where the fund or trust or institution
or any university or other educational institution or any
hospital or other medical institution referred to in
sub-clause (iv) or sub-clause (v) or sub-clause (vi) or
sub-clause (via) does not apply its income during the year
of receipt and accumulates it, any payment or credit out of
such accumulation to any trust or institution registered
under section 12AA or to any fund or trust or institution
or any university or other educational institution or any
hospital or other medical institution referred to in
sub-clause (iv) or sub-clause (v) or sub-clause (vi) or
sub-clause (via) shall not be treated as application of
income to the objects for which such fund or trust or
institution or university or educational institution or
hospital or other medical institution, as the case may be,
is established :
Provided also that where the fund or institution referred
to in sub-clause (iv) or trust or institution referred to
in sub-clause (v) is notified by the Central Government or
is approved by the prescribed authority, as the case may
be, or any university or other educational institution
referred to in sub-clause (vi) or any hospital or other
medical institution referred to in sub-clause (via), is
approved by the prescribed authority and subsequently that
Government or the prescribed authority is satisfied that—
(i) such fund or institution or trust or any university or
other educational institution or any hospital or other
medical institution has not—
(A) applied its income in accordance with the provisions
contained in clause (a) of the third proviso; or
(B) invested or deposited its funds in accordance with the
provisions contained in clause (b) of the third proviso; or
(ii) the activities of such fund or institution or trust or
any university or other educational institution or any
hospital or other medical institution—
(A) are not genuine; or
(B) are not being carried out in accordance with all or any
of the conditions subject to which it was notified or
approved,
it may, at any time after giving a reasonable opportunity
of showing cause against the proposed action to the
concerned fund or institution or trust or any university or
other educational institution or any hospital or other
medical institution, rescind the notification or, by order,
withdraw the approval, as the case may be, and forward a
copy of the order rescinding the notification or
withdrawing the approval to such fund or institution or
trust or any university or other educational institution or
any hospital or other medical institution and to the
Assessing Officer:
Provided also that in case the fund or trust or institution
or any university or other educational institution or any
hospital or other medical institution referred to in the
first proviso makes an application on or after the 1st day
of June, 2006 for the purposes of grant of exemption or
continuance thereof, such application shall be made on or
before the 30th day of September of the relevant assessment
year] from which the exemption is sought :
Provided also that any anonymous donation referred to in
section 115BBC on which tax is payable in accordance with
the provisions of the said section shall be included in the
total income :
Provided also that all pending applications, on which no
notification has been issued under sub-clause (iv) or
sub-clause (v) before the 1st day of June, 2007, shall
stand transferred on that day to the prescribed authority
and the prescribed authority may proceed with such
applications under those sub-clauses from the stage at
which they were on that day:
Provided also that the income of a trust or institution
referred to in sub-clause (iv) or sub-clause (v) shall be
included in its total income of the previous year if the
provisions of the first proviso to clause (15) of section 2
become applicable to such trust or institution in the said
previous year, whether or not any approval granted or
notification issued in respect of such trust or institution
has been withdrawn or rescinded;
Provided also that where the fund or institution referred
to in sub-clause (iv) or the trust or institution
referred to in sub-clause (v) has been notified by
the Central Government or approved by the prescribed
authority, as the case may be, or any university or other
educational institution referred to in sub-clause ( vi) or any hospital or other medical institution
referred to in sub-clause (via), has been approved
by the prescribed authority, and the notification or
theapproval is in force for any previous year, then,
nothing contained in any other provision of this section
[other than clause (1) thereof] shall operate to
exclude any income received on behalf of such fund or trust
or institution or university or other educational
institution or hospital or other medical institution, as
the case may be, from the total income of the person in
receipt thereof for that previous year.
Explanation
.––In this clause, where any income is required to be
applied or accumulated, then, for such purpose the income
shall be determined without any deduction or allowance by
way of depreciation or otherwise in respect of any asset,
acquisition of which has been claimed as an application of
income under this clause in the same or any other previous
year;’
(23D) subject to the provisions of Chapter XII-E, any
income of—
(i) a Mutual Fund registered under the Securities and
Exchange Board of India Act, 1992 (15 of 1992) or
regulations made thereunder;
(ii) such other Mutual Fund set up by a public sector bank
or a public financial institution or authorised by the
Reserve Bank of India and subject to such conditions as the
Central Government may, by notification in the Official
Gazette, specify in this behalf.
Explanation.—For the purposes of this clause,—
(a) the expression "public sector bank" means the State
Bank of India constituted under the State Bank of India
Act, 1955 (23 of 1955), a subsidiary bank as defined in the
State Bank of India (Subsidiary Banks) Act, 1959 (38 of
1959), a corresponding new Bank constituted under section 3
of the Banking Companies (Acquisition and Transfer of
Under-takings) Act, 1970 (5 of 1970), or under section 3 of
the Banking Companies (Acquisition and Transfer of
Under-takings) Act, 1980 (40 of 1980) and a bank included
in the category "other public sector banks" by the Reserve
Bank of India;
(b) the expression "public financial institution" shall
have the meaning assigned to it in section 4A of the
Companies Act, 1956 (1 of 1956);
(c) the expression "Securities and Exchange Board of India"
shall have the meaning assigned to it in clause (a) of
sub-section (1) of section 2 of the Securities and Exchange
Board of India Act, 1992 (15 of 1992);
‘(23DA) any income of a securitisation trust from the
activity of securitisation.
Explanation.—For the purposes of this clause,—
(a) “securitisation” shall have the same meaning as
assigned to it,—
(i) in clause (r) of sub-regulation (1) of regulation 2 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
(ia) in clause (z) of sub-section ( 1) of section 2 of the Securitisation and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002; or
(ii) 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 the Explanation below section 115TCA ( the words" section 115TC"applicable upto 31st March,2017)
(23E) [Omitted by the Finance Act, 2002, w.e.f. 1-4-2003;]
(23EA) any income, by way of contributions received from
recognised stock exchanges and the members thereof,] of
such Investor Protection Fund set up by recognised stock
exchanges in India, either jointly or separately, as the
Central Government may, by notification in the Official
Gazette, specify in this behalf:
Provided that where any amount standing to the credit of
the Fund and not charged to income-tax during any previous
year is shared, either wholly or in part, with a recognised
stock exchange, the whole of the amount so shared shall be
deemed to be the income of the previous year in which such
amount is so shared and shall accordingly be chargeable to
income-tax;
(23EB) any income of the Credit Guarantee Fund Trust for
Small Industries, being a trust created by the Government
of India and the Small Industries Development Bank of India
established under sub-section (1) of section 3 of the Small
Industries Development Bank of India Act, 1989 (39 of
1989), for five previous years relevant to the assessment
years beginning on the 1st day of April, 2002 and ending on
the 31st day of March, 2007;
(23EC) any income, by way of contributions received from
commodity exchanges and the members thereof, of such
Investor Protection Fund set up by commodity exchanges in
India, either jointly or separately, as the Central
Government may, by notification in the Official Gazette,
specify in this behalf:
Provided that where any amount standing to the credit of
the said Fund and not charged to income-tax during any
previous 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 previous year in which
such amount is so shared and shall accordingly be
chargeable to income-tax.
Explanation.—For the purposes of this clause, "commodity
exchange" shall mean a "registered association" as defined
in clause (jj) of section 2 of the Forward Contracts
(Regulation) Act, 1952 (74 of 1952);
‘(23ED) any income, by way of contributions received from a
depository, of such Investor Protection Fund set up in
accordance with the regulations by a depository as the
Central Government may, by notification in the Official
Gazette, specify in this behalf:
Provided that where any amount standing to the credit of
the Fund and not charged to income-tax during any previous
year is shared, either wholly or in part with a depository,
the whole of the amount so shared shall be deemed to be the
income of the previous year in which such amount is so
shared and shall, accordingly, be chargeable to income-tax.
Explanation.—For the purposes of this clause,—
(i) “depository” shall have the same meaning as assigned to
it in clause (e) of sub-section (1) of section 2 of the
Depositories
Act, 1996 (22 of 1996);
(ii) “regulations” means the regulations made under the
Securities
and Exchange Board of India Act, 1992 (15 of 1992) and the
Depositories Act, 1996 (22 of 1996);’;
(23EE) any specified income of such Core
Settlement Guarantee Fund, set up by a recognised clearing
corporation in accordance with the regulations, as the
Central Government may, by notification in the Official
Gazette, specify in this behalf:
Provided that where any amount standing to the credit of
the Fund and not charged to income-tax during any previous
year is shared, either wholly or in part with the specified
person, the whole of the amount so shared shall be deemed
to be the income of the previous year in which amount is so
shared and shall, accordingly, be chargeable to income-tax.
Explanation
.—For the purposes of this clause,—
(i) “recognised clearing corporation” shall have
the same meaning as assigned to it in clause (o)
of sub-regulation (1) of regulation 2 of the
Securities Contracts (Regulation) (Stock Exchanges and
Clearing Corporations) Regulations, 2012 made under the
Securities and Exchange Board of India Act, 1992 and the
Securities Contracts (Regulation) Act, 1956;
(ii) “regulations” means the Securities Contracts
(Regulation) (Stock Exchanges and Clearing Corporations)
Regulations, 2012 made under the Securities and Exchange
Board of India Act, 1992 and the Securities Contracts
(Regulation) Act, 1956;
(iii) “specified income” shall mean,—
(a) the income by way of contribution received
from specified person
(b) the income by way of penalties imposed by the
recognised clearing corporation and credited to the Core
Settlement Guarantee Fund; or
(c) the income from investment made by the Fund;
(iv) “specified person” shall mean,—
(a) any recognised clearing corporation which
establishes and maintains the Core Settlement Guarantee
Fund; and
(b) any recognised stock exchange, being a
shareholder in such recognised clearing corporation, or a
contributor to the Core Settlement Guarantee Fund; and
(c) any clearing member contributing to the Core
Settlement Guarantee Fund;’;
(23F) any income by way of dividends or long-term capital
gains of a venture capital fund or a venture capital
company from investments made by way of equity shares in a
venture capital undertaking :
Provided that such venture capital fund or venture capital
company is approved for the purposes of this clause by the
prescribed autho-rity in accordance with the rules made in
this behalf and satisfies the prescribed conditions :
Provided further that any approval by the prescribed
authority shall, at any one time, have effect for such
assessment year or years, not exceeding three assessment
years, as may be specified in the order of approval :
Provided also that nothing contained in this clause shall
apply in respect of any investment made after the 31st day
of March, 1999.
Explanation.—For the purposes of this clause,—
(a) "venture capital fund" means such fund, operating under
a trust deed registered under the provisions of the
Registration Act, 1908 (16 of 1908), established to raise
monies by the trustees for investments mainly by way of
acquiring equity shares of a venture capital undertaking in
accordance with the prescribed guidelines;
(b) "venture capital company" means such company as has
made investments by way of acquiring equity shares of
venture capital undertakings in accordance with the
prescribed guidelines;
(c) "venture capital undertaking" means such domestic
company whose shares are not listed in a recognised stock
exchange in India and which is engaged in the business of
generation or generation and distribution of electricity or
any other form of power or engaged in the business of
providing telecommunication services or in the business of
developing, maintaining and operating any infrastructure
facility or engaged in the manufacture or production of
such articles or things (including computer software) as
may be notified by the Central Government in this behalf;
and
(d) "infrastructure facility" means a road, highway,
bridge, airport, port, rail system, a water supply project,
irrigation project, sanitation and sewerage system or any
other public facility of a similar nature as may be
notified by the Board in this behalf in the Official
Gazette and which fulfils the conditions specified in
sub-section (4A) of section 80-IA;
(23FA) any income by way of dividends, other than dividends
referred to in section 115-O, or long-term capital gains of
a venture capital fund or a venture capital company from
investments made by way of equity shares in a venture
capital undertaking :
Provided that such venture capital fund or venture capital
company is approved, for the purposes of this clause, by
the Central Government on an application made to it in
accordance with the rules made in this behalf and which
satisfies the prescribed conditions :
Provided further that any approval by the Central
Government shall, at any one time, have effect for such
assessment year or years, not exceeding three assessment
years, as may be specified in the order of approval :
Provided also that nothing contained in this clause shall
apply in respect of any investment made after the 31st day
of March, 2000.
Explanation.—For the purposes of this clause,—
(a) "venture capital fund" means such fund, operating under
a trust deed registered under the provisions of the
Registration Act, 1908 (16 of 1908), established to raise
monies by the trustees for investments mainly by way of
acquiring equity shares of a venture capital undertaking in
accordance with the prescribed guidelines;
(b) "venture capital company" means such company as has
made investments by way of acquiring equity shares of
venture capital undertakings in accordance with the
prescribed guidelines; and
(c) "venture capital undertaking" means such domestic
company whose shares are not listed in a recognised stock
exchange in India and which is engaged in the—
(i) business of—
(A) software;
(B) information technology;
(C) production of basic drugs in the pharmaceutical sector;
(D) bio-technology;
(E) agriculture and allied sectors; or
(F) such other sectors as may be notified by the Central
Government in this behalf; or
(ii) production or manufacture of any article or substance
for which patent has been granted to the National Research
Laboratory or any other scientific research institution
approved by the Department of Science and Technology;
(23FB) any income of a venture capital company or venture
capital fund from investment in a venture capital
undertaking.
“Provided that nothing contained in this clause shall apply
in respect of any income of a venture capital company or
venture capital fund, being an investment fund specified in
clause (a) of the Explanation 1 to section 115UB, of the
previous year relevant to the assessment year beginning on
or after the 1st day of April, 2016;”
Explanation.—For the purposes of this clause,—
(a) “venture capital company” means a company which—(A) has
been granted a certificate of registration, before the 21st
day of May, 2012, as a Venture Capital Fund and is
regulated under the Securities and Exchange Board of India
(Venture Capital Funds) Regulations, 1996 (hereinafter
referred to as the Venture Capital Funds Regulations) made
under the Securities and Exchange Board of India Act, 1992
(15 of 1992); or
(B) 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 (hereinafter 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,
namely:—
(i) it is not listed on a recognised stock exchange;
(ii) it has invested not less than two-thirds of its
investible funds in unlisted equity shares or equity linked
instruments of venture capital undertaking; and
(iii) 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 ten per cent of its equity share capital) holds,
either individually or collectively, equity shares in
excess of fifteen per cent of the paid-up equity share
capital of such venture capital undertaking;
(b) “venture capital fund” means a fund—
(A) operating under a trust deed registered under the
provisions of the Registration Act, 1908 (16 of 1908),
which—
(I) has been granted a certificate of registration,
beforethe 21st day of May, 2012, as a Venture Capital Fund
and is regulated under the Venture Capital Funds
Regulations; or
(II) 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 and which fulfils the
following conditions, namely:—
(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
fifteen per cent of the paid-up equity share capital of
such venture capital undertaking; and
(iii) the units, if any, issued by it are not listed in any
recognised stock exchange; or
(B) operating as a venture capital scheme made by the
UnitTrust of India established under the Unit Trust of
India Act,1963 (52 of 1963);
(c) “venture capital undertaking” means—
(i) a venture capital undertaking as defined in clause (n)
of regulation 2 of the Venture Capital Funds Regulations;
or
(i) it is not listed on a recognised stock exchange;
(ii) it has invested not less than two-thirds of its
investible funds in unlisted equity shares or equity linked
instruments of venture capital undertaking; and
(iii) 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 ten per cent of its equity share capital) holds,
either individually or collectively, equity shares in
excess of fifteen per cent of the paid-up equity share
capital of such venture capital undertaking;
(c) “venture capital undertaking” means—
(i) a venture capital undertaking as defined in clause (n)
of regulation 2 of the Venture Capital Funds Regulations;
or
(
ii
) a venture capital undertaking as defined in clause (
aa) of sub-regulation (1)
of regulation 2 of the Alternative Investment Funds
Regulations;
‘(23FBA) any income of an investment fund other than the
income chargeable under the head “Profits and gains of
business or profession”;
(23FBB) any income referred to in section 115UB, accruing
or arising to, or received by, a unit holder of an
investment fund, being that proportion of income which is
of the same nature as income chargeable under the head
“Profits and gains of business or profession”.
Explanation.—For the purposes of clauses (23FBA) and
(23FBB), the expression “investment fund” shall have the
meaning assigned to it in clause (a) of the Explanation 1
to section 115UB;’
(23FC) any income of a business trust by way of—
(a) interest received or receivable from a special
purpose vehicle; or
(b) dividend referred to in sub-section ( 7) of section 115-O”:
( the words "by way of interest received or receivable
from a special purpose vehicle" applicable upto 31st
March, 2017)
Explanation
.—For the purposes of this clause, the expression “special
purpose vehicle” means an Indian company in which the
business trust holds controlling interest and any specific
percentage of shareholding or interest, as may be required
by the regulations under which such trust is granted
registration;
‘(23FCA) any 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.
Explanation.—For the purposes of this clause, the
expression “real estate asset” shall have the same meaning
as assigned to it in clause (zj) of sub-regulation (1) of
regulation 2 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;’
(23FD) any distributed income, referred to in
section 115UA, received by a unit holder from the business
trust, not being that proportion of the income which is of
the same nature as the income referred to in sub-clause ( a) of clause (23FC) ( the words "
in clause (23FC)" applicable upto 31st March, 2017)
"or clause (23FCA)" ;
(23G) [Omitted by the Finance Act, 2006, w.e.f. 1-4-2007;]
(24) any income chargeable under the heads "Income from
house property" and "Income from other sources" of—
(a) a registered union within the meaning of the Trade
Unions Act, 1926 (16 of 1926), formed primarily for the
purpose of regulating the relations between workmen and
employers or between workmen and workmen;
(b) an association of registered unions referred to in
sub-clause (a);
(25) (i) interest on securities which are held by, or are
the property of, any provident fund to which the Provident
Funds Act, 1925 (19 of 1925), applies, and any capital
gains of the fund arising from the sale, exchange or
transfer of such securities;
(ii) any income received by the trustees on behalf of a
recognised provident fund;
(iii) any income received by the trustees on behalf of an
approved superannuation fund;
(iv) any income received by the trustees on behalf of an
approved gratuity fund;
(v) any income received—
(a) by the Board of Trustees constituted under the Coal
Mines Provident Funds and Miscellaneous Provisions Act,
1948 (46 of 1948), on behalf of the Deposit-linked
Insurance Fund established under section 3G of that Act; or
(b) by the Board of Trustees constituted under the
Employees' Provident Funds and Miscellaneous Provisions
Act, 1952 (19 of 1952), on behalf of the Deposit-linked
Insurance Fund established under section 6C of that Act;
(25A) any income of the Employees' State Insurance Fund set
up under the provisions of the Employees' State Insurance
Act, 1948 (34 of 1948);
(26) in the case of a member of a Scheduled Tribe as
defined in clause (25) of article 366 of the Constitution,
residing in any area specified in Part I or Part II of the
Table appended to paragraph 20 of the Sixth Schedule to the
Constitution or in the States of Arunachal Pradesh,
Manipur, Mizoram, Nagaland and Tripura] or in the areas
covered by notification No. TAD/R/35/50/109, dated the 23rd
February, 1951, issued by the Governor of Assam under the
proviso to sub-paragraph (3) of the said paragraph 20 [as
it stood immediately before the commencement of the
North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971)
or in the Ladakh region of the State of Jammu and Kashmir,
any income which accrues or arises to him,—
(a) from any source in the areas or States aforesaid, or
(b) by way of dividend or interest on securities;
(26A) any income accruing or arising to any person from any
source in the district of Ladakh or outside India in any
previous year relevant to any assessment year commencing
before the 1st day of April, 1989, where such person is
resident in the said district in that previous year :
Provided that this clause shall not apply in the case of
any such person unless he was resident in that district in
the previous year relevant to the assessment year
commencing on the 1st day of April, 1962.
Explanation 1.—For the purposes of this clause, a person
shall be deemed to be resident in the district of Ladakh if
he fulfils the requirements of sub-section (1) or
sub-section (2) or sub-section (3) or sub-section (4) of
section 6, as the case may be, subject to the modifications
that—
(i) references in those sub-sections to India shall be
construed as references to the said district; and
(ii) in clause (i) of sub-section (3), reference to Indian
company shall be construed as reference to a company formed
and registered under any law for the time being in force in
the State of Jammu and Kashmir and having its registered
office in that district in that year.
Explanation 2.—In this clause, references to the district
of Ladakh shall be construed as references to the areas
comprised in the said district on the 30th day of June,
1979;
(26AA) [* * *]
(26AAA) in case of an individual, being a Sikkimese, any
income which accrues or arises to him—
(a) from any source in the State of Sikkim; or
(b) by way of dividend or interest on securities:
Provided that nothing contained in this clause shall apply
to a Sikkimese woman who, on or after the 1st day of April,
2008, marries an individual who is not a Sikkimese.
Explanation.—For the purposes of this clause, "Sikkimese"
shall mean—
(i) an individual, whose name is recorded in the register
maintained under the Sikkim Subjects Regulation, 1961 read
with the Sikkim Subject Rules, 1961 (hereinafter referred
to as the "Register of Sikkim Subjects"), immediately
before the 26th day of April, 1975; or
(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; or
(iii) any other individual, whose name does not appear in
the Register of Sikkim Subjects, but it is established
beyond doubt that the name of such individual's father or
husband or paternal grand-father or brother from the same
father has been recorded in that register;
(26AAB) any income of an agricultural produce market
committee or board constituted under any law for the time
being in force for the purpose of regulating the marketing
of agricultural produce;
(26B) any income of a corporation established by a Central,
State or Provincial Act or of any other body, institution
or association (being a body, institution or association
wholly financed by Government) where such corporation or
other body or institution or association has been
established or formed for promoting the interests of the
members of the Scheduled Castes or the Scheduled Tribes or
backward classes or of any two or all of them.
Explanation.—For the purposes of this clause,—
(a) Scheduled Castes" and "Scheduled Tribes" shall have the
meanings respectively assigned to them in clauses (24) and
(25) of article 366 of the Constitution;
(b) "backward classes" means such classes of citizens,
other than the Scheduled Castes and the Scheduled Tribes,
as may be notified—
(i) by the Central Government; or
(ii) by any State Government,
as the case may be, from time to time;
(26BB) any income of a corporation established by the
Central Government or any State Government for promoting
the interests of the members of a minority community.
Explanation.—For the purposes of this clause, "minority
community" means a community notified as such by the
Central Government in the Official Gazette in this behalf;
(26BBB) any income of a corporation established by a
Central, State or Provincial Act for the welfare and
economic upliftment of ex-servicemen being the citizens of
India.
Explanation.—For the purposes of this clause,
"ex-serviceman" means a person who has served in any rank,
whether as combatant or non-combatant, 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) for a continuous period of
not less than six months after attestation and has been
released, otherwise than by way of dismissal or discharge
on account of misconduct or inefficiency, and in the case
of a deceased or incapacitated ex-serviceman includes his
wife, children, father, mother, minor brother, widowed
daughter and widowed sister, wholly dependant upon such
ex-serviceman immediately before his death or
incapacitation;
(27) any income of a co-operative society formed for
promoting the interests of the members of either the
Scheduled Castes or Scheduled Tribes or both referred to in
clause (26B) :
Provided that the membership of the co-operative society
consists of only other co-operative societies formed for
similar purposes and the finances of the society are
provided by the Government and such other societies;
(28) [* * *]
(29) [Omitted by the Finance Act, 2002, w.e.f. 1-4-2003;]
(29A) any income accruing or arising to—
(a) the Coffee Board constituted under section 4 of the
Coffee Act, 1942 (7 of 1942) in any previous year relevant
to any assessment year commencing on or after the 1st day
of April, 1962 or the previous year in which such Board was
constituted, whichever is later;
(b) the Rubber Board constituted under sub-section (1) of
section 4 of the Rubber Board Act, 1947 (24 of 1947) in any
previous year relevant to any assessment year commencing on
or after the 1st day of April, 1962 or the previous year in
which such Board was constituted, whichever is later;
(c) the Tea Board established under section 4 of the Tea
Act, 1953 (29 of 1953) in any previous year relevant to any
assessment year commencing on or after the 1st day of
April, 1962 or the previous year in which such Board was
constituted, whichever is later;
(d) the Tobacco Board constituted under the Tobacco Board
Act, 1975 (4 of 1975) in any previous year relevant to any
assessment year commencing on or after the 1st day of
April, 1975 or the previous year in which such Board was
constituted, whichever is later;
(e) the Marine Products Export Development Authority
established under section 4 of the Marine Products Export
Development Authority Act, 1972 (13 of 1972) in any
previous year relevant to any assessment year commencing on
or after the 1st day of April, 1972 or the previous year in
which such Authority was constituted, whichever is later;
(f) the Agricultural and Processed Food Products Export
Development Authority established under section 4 of the
Agricultural and Processed Food Products Export Development
Act, 1985 (2 of 1986) in any previous year relevant to any
assessment year commencing on or after the 1st day of
April, 1985 or the previous year in which such Authority
was constituted, whichever is later;
(g) the Spices Board constituted under sub-section (1) of
section 3 of the Spices Board Act, 1986 (10 of 1986) in any
previous year relevant to any assessment year commencing on
or after the 1st day of April, 1986 or the previous year in
which such Board was constituted, whichever is later;
(h) the Coir Board established under section 4 of the Coir
Industry Act, 1953 (45 of 1953);
(30) in the case of an assessee who carries on the business
of growing and manufacturing tea in India, the amount of
any subsidy received from or through the Tea Board under
any such scheme for replantation or replacement of tea
bushes or for rejuvenation or consolidation of areas used
for cultivation of tea] as the Central Government may, by
notification in the Official Gazette, specify:
Provided that the assessee furnishes to the Assessing
Officer, along with his return of income for the assessment
year concerned or within such further time as the Assessing
Officer may allow, a certificate from the Tea Board as to
the amount of such subsidy paid to the assessee during the
previous year.
Explanation.—In this clause, "Tea Board" means the Tea
Board established under section 4 of the Tea Act, 1953 (29
of 1953);]
(31) in the case of an assessee who carries on the business
of growing and manufacturing rubber, coffee, cardamom or
such other commodity in India, as the Central Government
may, by notification in the Official Gazette, specify in
this behalf, the amount of any subsidy received from or
through the concerned Board under any such scheme for
replantation or replacement of rubber plants, coffee
plants, cardamom plants or plants for the growing of such
other commodity or for rejuvenation or consolidation of
areas used for cultivation of rubber, coffee, cardamom or
such other commodity as the Central Government may, by
notification in the Official Gazette, specify:
Provided that the assessee furnishes to the Assessing
Officer, along with his return of income for the assessment
year concerned or within such further 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 previous year.
Explanation.—In this clause, "concerned Board" means,—
(i) in relation to rubber, the Rubber Board constituted
under section 4 of the Rubber Act, 1947 (24 of 1947),
(ii) in relation to coffee, the Coffee Board constituted
under section 4 of the Coffee Act, 1942 (7 of 1942),
(iii) in relation to cardamom, the Spices Board constituted
under section 3 of the Spices Board Act, 1986 (10 of 1986),
(iv) in relation to any other commodity specified under
this clause, any Board or other authority established under
any law for the time being in force which the Central
Government may, by notification in the Official Gazette,
specify in this behalf;
(32) in the case of an assessee referred to in sub-section
(1A) of section 64, any income includible in his total
income under that sub-section, to the extent such income
does not exceed one thousand five hundred rupees in respect
of each minor child whose income is so includible;
(33) any income arising from the transfer of a capital
asset, being a unit of the Unit Scheme, 1964 referred to in
Schedule I to the Unit Trust of India (Transfer of
Undertaking and Repeal) Act, 2002 (58 of 2002)and where the
transfer of such asset takes place on or after the 1st day
of April, 2002;
(34) any income by way of dividends referred to in section
115-O;
Provided that nothing in this clause shall apply to any
income by way of dividend chargeableto tax in accordance
with the provisions of section 115BBDA.
(34A) any income arising to an assessee, being a
shareholder, on account of buy back of shares (not being
listed on a recognised stock exchange) by the company as
referred to in section 115QA;
(35) any income by way of,—
(a) income received in respect of the units of a Mutual
Fund specified under clause (23D); or
(b) income received in respect of units from the
Administrator of the specified undertaking; or
(c) income received in respect of units from the specified
company:
Provided that this clause shall not apply to any income
arising from transfer of units of the Administrator of the
specified undertaking or of the specified company or of a
mutual fund, as the case may be.
Explanation.—For the purposes of this clause,—
(a) "Administrator" means the Administrator as referred to
in clause (a) of section 2 of the Unit Trust of India
(Transfer of Undertaking and Repeal) Act, 2002 (58 of
2002);
(b) "specified company" means a company as referred to in
clause (h) of section 2 of the Unit Trust of India
(Transfer of Undertaking and Repeal) Act, 2002 (58 of
2002);
(35A) any income by way of distributed income referred to
in section 115TA received from a securitisation trust by
any person being an investor of the said trust.
Provided that nothing contained in this clause shall apply
to any income by way of distributed income referred to in
the said section, received on or after the 1st day of June,
2016.
Explanation.—For the purposes of this clause, the
expressions “investor” and “securitisation trust” shall
have the meanings respectively assigned to them in the
Explanation below section 115TCA (the words " section 115TC" upto 31st May, 2016)
(36) any income arising from the transfer of a long-term
capital asset, being an eligible equity share in a company
purchased on or after the 1st day of March, 2003 and before
the 1st day of March, 2004 and held for a period of twelve
months or more.
Explanation.—For the purposes of this clause, "eligible
equity share" means,—
(i) any equity share in a company being a constituent of
BSE-500 Index of the Stock Exchange, Mumbai as on the 1st
day of March, 2003 and the transactions of purchase and
sale of such equity share are entered into on a recognised
stock exchange in India;
(ii) any equity share in a company allotted through a
public issue on or after the 1st day of March, 2003 and
listed in a recognised stock exchange in India before the
1st day of March, 2004 and the transaction of sale of such
share is entered into on a recognised stock exchange in
India;
(37) in the case of an assessee, being an individual or a
Hindu undivided family, any income chargeable under the
head "Capital gains" arising from the transfer of
agricultural land, where—
(i) such land is situate in any area referred to in item
(a) or item (b) of sub-clause (iii) of clause (14) of
section 2;
(ii) such land, during the period of two years immediately
preceding the date of transfer, was being used for
agricultural purposes by such Hindu undivided family or
individual or a parent of his;
(iii) such transfer is by way of compulsory acquisition
under any law, or a transfer the consideration for which is
determined or approved by the Central Government or the
Reserve Bank of India;
(iv) such income has arisen from the compensation or
consideration for such transfer received by such assessee
on or after the 1st day of April, 2004.
Explanation.—For the purposes of this clause, the
expression "compensation or consideration" includes the
compensation or consideration enhanced or further enhanced
by any court, Tribunal or other authority;
(37A) any income chargeable under the head “Capital gains”
in respect of transfer of a specified capital asset arising
to an assessee, being an individual or a Hindu undivided
family, who was the owner of such specified capital asset
as on the 2nd day of June, 2014 and transfers that
specified capital asset under the Land Pooling Scheme
(herein referred to as “the scheme”) covered under the
Andhra Pradesh Capital City Land Pooling Scheme
(Formulation and Implementation) Rules, 2015 made under the
provisions of the Andhra Pradesh Capital Region Development
Authority Act, 2014 and the rules, regulations and Schemes
made under the said Act.
Explanation.—For the purposes of this clause, “specified
capital asset” means,—
(a) the land or building or both owned by the assessee as
on the 2nd day of 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;
(38) any income arising from the transfer of a long-term
capital asset, being an equity share in a company or a unit
of an equity oriented fund or a unit of a business trust
where—
(a) the transaction of sale of such equity share or unit is
entered into on or after the date on which Chapter VII of
the Finance (No. 2) Act, 2004 comes into force; and
(b) such transaction is chargeable to securities
transaction tax under that Chapter :
Provided that the income by way of long-term capital gain
of a company shall be taken into account in computing the
book profit and income-tax payable under section 115JB.
Provided also that nothing contained in sub-clause ( b) shall apply to a transaction undertaken on a
recognised stock exchange located in any International
Financial Services Centre and where the consideration for
such transaction is paid or payable in foreign currency. (Inserted with effect from 1st april, 2017)
Provided also that nothing contained in this clause shall
apply to any income arising from the transfer of a
long-term capital asset, being an equity share in a
company, if the transaction of acquisition, other than the
acquisition notified by the Central Government in this
behalf, of such equity share is entered into on or after
the 1st day of October, 2004 and such transaction is not
chargeable to securities transaction tax under Chapter VII
of the Finance (No. 2) Act, 2004.
Provided also
that nothing contained in this clause shall apply to any
income arising from the transfer of long-term capital
asset, being an equity share in a company or a unit of an
equity oriented fund or a unit of a business trust, made on
or after the 1st day of April, 2018.
Explanation.—For the purposes of this clause,—
(a) “equity oriented fund” means a fund—
(i) where the investible funds are invested by way
of equity shares in domestic companies to the extent of
more than sixty-five per cent. of the total proceeds of
such fund; and
(ii) which has been set up under a scheme of a
Mutual Fund specified under clause (23D):
Provided that the percentage of equity share holding of the
fund shall be computed with reference to the annual average
of the monthly averages of the opening and closing figures;
(b
) “International Financial Services Centre” shall have the
same meaning as assigned to it in clause (q) of
section 2 of the Special Economic Zones Act, 2005;
(c) “recognised stock exchange” shall have the
meaning assigned to it in clause (ii) of the Explanation 1 to sub-section (5) of
section 43.’
Explanation :(For the purposes of this clause, "equity
oriented fund" means a fund—
(i) where the investible funds are invested by way of
equity shares in domestic companies to the extent of more
than sixty-five per cent of the total proceeds of such
fund; and
(ii) which has been set up under a scheme of a Mutual Fund
specified under clause (23D) :
Provided that the percentage of equity shareholding of the
fund shall be computed with reference to the annual average
of the monthly averages of the opening and closing figures;
upto 31st March, 2017)
(39) any specified income, arising from any international
sporting event held in India, to the person or persons
notified by the Central Government in the Official Gazette,
if such international sporting event—
(a) is approved by the international body regulating the
international sport relating to such event;
(b) has participation by more than two countries;
(c) is notified by the Central Government in the Official
Gazette for the purposes of this clause.
Explanation.—For the purposes of this clause, "the
specified income" means the income, of the nature and to
the extent, arising from the international sporting event,
which the Central Government may notify in this behalf;
(40) any income of any subsidiary company by way of grant
or otherwise received from an Indian company, being its
holding company engaged in the business of generation or
transmission or distribution of power if receipt of such
income is for settlement of dues in connection with
reconstruction or revival of an existing business of power
generation:
Provided that the provisions of this clause shall apply if
reconstruction or revival of any existing business of power
generation is by way of transfer of such business to the
Indian company notified under sub-clause (a) of clause (v)
of sub-section (4) of section 80-IA;
(41) any income arising from transfer of a capital asset,
being an asset of an undertaking engaged in the business of
generation or transmission or distribution of power where
such transfer is effected on or before the 31st day of
March, 2006, to the Indian company notified under
sub-clause (a) of clause (v) of sub-section (4) of section
80-IA;
(42) any specified income arising to a body or authority
which—
(a) has been established or constituted or appointed under
a treaty or an agreement entered into by the Central
Government with two or more countries or a convention
signed by the Central Government;
(b) is established or constituted or appointed not for the
purposes of profit;
(c) is notified by the Central Government in the Official
Gazette for the purposes of this clause.
Explanation.—For the purposes of this clause, "specified
income" means the income, of the nature and to the extent,
arising to the body or authority referred to in this
clause, which the Central Government may notify in this
behalf;
(43) any amount received by an individual as a loan, either
in lump sum or in instalment, in a transaction of reverse
mortgage referred to in clause (xvi) of section 47;
(44) any income received by any person for, or on behalf
of, the New Pension System Trust established on the 27th
day of February, 2008 under the provisions of the Indian
Trusts Act, 1882 (2 of 1882);
(45) any allowance or perquisite, as may be notified by the
Central Government in the Official Gazette in this behalf,
paid to the Chairman or a retired Chairman or any other
member or retired member of the Union Public Service
Commission;
(46) any specified income arising to a body or authority or
Board or Trust or Commission (by whatever name called) [or a class thereof]
which—
(a) has been established or constituted by or under a
Central, State or Provincial Act, or constituted 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 Central Government in the Official
Gazette for the purposes of this clause.
Explanation.—For the purposes of this clause, "specified
income" means the income, of the nature and to the extent
arising to a body or authority or Board or Trust or
Commission (by whatever name called) referred to in this
clause, which the Central Government may, by notification
in the Official Gazette, specify in this behalf;
(47) any income of an infrastructure debt fund, set up in
accordance with the guidelines as may be prescribed, which
is notified by the Central Government in the Official
Gazette for the purposes of this clause;
(48) any income received in India in Indian currency by a
foreign company on account of sale of crude oil, any other
good or rendering of services as may be notified by the
central government in this behalf, to any person in India:
Provided that—
(i) 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 approved by the Central
Government;
(ii) having regard to the national interest, the foreign
company and the agreement or arrangement are notified by
the Central Government in this behalf; and
(iii) the foreign company is not engaged in any activity,
other than receipt of such income, in India.
(48A) any income accruing or arising to a foreign
company on account of storage of crude oil in a facility in
India and sale of crude oil therefrom to any person
resident in India:
Provided that —
(i) the storage and sale by the foreign company is
pursuant to an agreement or an arrangement entered into by
the Central Government or approved by the Central
Government; and
(ii) having regard to the national interest, the
foreign company and the agreement or arrangement are
notified by the Central Government in this behalf;
(Inserted w.e.f. 1st April,2017)
(48B) any income accruing or arising to a foreign company
on account of sale of leftover stock of crude oil, if any,
from the facility in India after the expiry of the
agreement or the arrangement referred to in clause (48A) 14 [or on termination of the
said agreement or the arrangement, in accordance with the
terms mentioned therein, as the case may be, ] subject to such conditions as may be
notified by the Central Government in this
behalf;.(inserted w.e.f 1st day of April,2018)
(49) any income of the National Financial Holdings Company
Limited, being a company set up by the Central Government,
of any previous year relevant to any assessment year
commencing on or before the 1st day of April, 2014.
(50
) any income arising from any specified service provided on
or after the date on which the provisions of Chapter VIII
of the Finance Act, 2016 comes into force and chargeable to
equalisation levy under that Chapter.
Explanation
.—For the purposes of this clause, “specified service”
shall have the meaning assigned to it in clause (i
) of section 161 of Chapter VIII of the Finance Act, 2016.
(Inserted with effect from 1st June, 2016)
|
