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
3 any receipts which are of a casual and non- recurring nature, to the extent such receipts do not exceed five thousand rupees in the aggregate Provided that where such receipts relate to winnings from races including horse races, the provisions of this clause shall have effect as if for the words five thousand rupees, the words two thousand five hundred rupees had been substituted Provided further that this clause shall not apply to- i capital gains chargeable under the provisions of section 45 or 1. Inserted by the Taxation Laws Amendment Act, 1970 w. e. f. 1- 4- 1971 2. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993. Earlier, clause 2A was inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989 but was omitted by the Direct Tax Laws Amendment Act, 1989, with effect from the same date. 3. Substituted by the Finance Act, 1972, w. e. f. 14- 1972. Section 59 of the said Finance Act has made the following special provision in this regard 59. Certain casual and non- recurring receipts not to be included in the total income for the assessment year 1972 - 73.- Notwithstanding the amendments made by this Act to the Income- tax Act, in computing, in the case of any person, the total income of a previous year relevant to the assessment year commencing on the 1st day of April, 1972, any income falling within clause 3 of section 10 of the Income- tax Act as it stood immediately before the 1st day of April, 1972, shall not be included. 4. Substituted for not being winnings from lotteries, to the extent such receipts do not exceed one thousand rupees in the aggregate by the Finance Act, 1986, w. e. f. 1- 4- 1987. 5. Substituted for Provided that by the Finance Act, 1992, w. e. f. 1- 4- 1992. ii receipts arising from business or the exercise of a profession or occupation or iii receipts by way of addition to the remuneration of an employee I
capital gains chargeable under the provisions of section 45 or 1. Inserted by the Taxation Laws Amendment Act, 1970 w. e. f. 1- 4- 1971 2. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993. Earlier, clause 2A was inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989 but was omitted by the Direct Tax Laws Amendment Act, 1989, with effect from the same date. 3. Substituted by the Finance Act, 1972, w. e. f. 14- 1972. Section 59 of the said Finance Act has made the following special provision in this regard 59. Certain casual and non- recurring receipts not to be included in the total income for the assessment year 1972 - 73.- Notwithstanding the amendments made by this Act to the Income- tax Act, in computing, in the case of any person, the total income of a previous year relevant to the assessment year commencing on the 1st day of April, 1972, any income falling within clause 3 of section 10 of the Income- tax Act as it stood immediately before the 1st day of April, 1972, shall not be included. 4. Substituted for not being winnings from lotteries, to the extent such receipts do not exceed one thousand rupees in the aggregate by the Finance Act, 1986, w. e. f. 1- 4- 1987. 5. Substituted for Provided that by the Finance Act, 1992, w. e. f. 1- 4- 1992.
Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989.
receipts arising from business or the exercise of a profession or occupation or
receipts by way of addition to the remuneration of an employee I
4 i in the case of a non- resident, any income by way of interest on 1. The word or omitted by the Finance Act, 1992, w. e. f. 1- 4- 1992. Earlier, it was inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 10- 1991 2. Omitted by the Finance Act, 1992, w. e. f. 1- 4- 1992. Prior to the omission, clause iv , as inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 10- 1991, read as under iv winnings from races including horse races 3. Substituted for clauses 4 and 4A by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. Prior to the substitution, clause 4 , as amended by the Finance Act, 1964, w. e. f. 1- 4- 1964, and clause 4A , as inserted by the Finance Act, 1964, w. e. f. 1- 4- 1965 amended by the Finance Act, 1968, w. e. f. 1- 4- 1969 and substituted by the Finance Act, 1982, w. e. f. 1- 4- 1982, read as under-- 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 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 23 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account 999999. -- 4 in the case of a non- resident, any income from interest on such securities as the Central Government may, by notification in the Official Gazette, specify in this behalf, or any income from interest on, or from premium on the redemption of, any bonds issued by the Central Government under a loan agreement between the Central Government and the International Bank for Reconstruction and Development or under a loan agreement between the Central Government and the Development Loan Fund of the United States of America or by any industrial undertaking or financial corporation in India under a loan agreement with the said Bank or Fund, as the case may be, which is guaranteed by the Central Government 4A in the case of a per- son resident outside India, any income from 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 any rules made thereunder. Explanation.- In this clause, person resident outside India shall have the meaning assigned to it in clause q of section 2 of the Foreign Exchange Regulation Act, 1973 46 of 1973 1. Substituted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1991 Prior to the substitution, sub- clause ii read as under ii in the case of an individual, who is a person resident outside India as defined in clause q of section 2 of the Foreign Exchange Regulation Act, 1973 46 of 1973 , 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 said Act and the rules made thereunder August, 1990 would be eligible for exemption under section 10 4 ii in respect of NRE FCNR accounts maintained upto 30th June, 1991 4A Substituted by clause 10 4 ii , supra, by the Direct Tax Laws Amendment Act, 1987 with effect from 1 April, 1989 .
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 23 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account 999999. -- 4 in the case of a non- resident, any income from interest on such securities as the Central Government may, by notification in the Official Gazette, specify in this behalf, or any income from interest on, or from premium on the redemption of, any bonds issued by the Central Government under a loan agreement between the Central Government and the International Bank for Reconstruction and Development or under a loan agreement between the Central Government and the Development Loan Fund of the United States of America or by any industrial undertaking or financial corporation in India under a loan agreement with the said Bank or Fund, as the case may be, which is guaranteed by the Central Government 4A in the case of a per- son resident outside India, any income from 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 any rules made thereunder. Explanation.- In this clause, person resident outside India shall have the meaning assigned to it in clause q of section 2 of the Foreign Exchange Regulation Act, 1973 46 of 1973 1. Substituted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1991 Prior to the substitution, sub- clause ii read as under ii in the case of an individual, who is a person resident outside India as defined in clause q of section 2 of the Foreign Exchange Regulation Act, 1973 46 of 1973 , 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 said Act and the rules made thereunder August, 1990 would be eligible for exemption under section 10 4 ii in respect of NRE FCNR accounts maintained upto 30th June, 1991 4A Substituted by clause 10 4 ii , supra, by the Direct Tax Laws Amendment Act, 1987 with effect from 1 April, 1989 .
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 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 per- son shall be deemed to be of Indian origin if he, or either of his parents or any of his grand- parents, 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
a a per- son shall be deemed to be of Indian origin if he, or either of his parents or any of his grand- parents, 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 1. Inserted by the Finance Act, 1982, w. e. f. 1- 4- 1983. 2. Substituted by the Direct Tax Laws Second Amendment Act, 1989, w. r. e. f. 1- 4- 1989. Prior to the substitution, clause 5 , as substituted by the Taxation Laws Amendment Act, 1970, w. r. e. f. 14- 1962 and amended by the Finance Act, 1975, w. e. f. 14- 1975, read as under 5 subject to such conditions as the Central Government may prescribe, in the case of an individual being a citizen of India,- i in relation to any assessment year not being an assessment year commencing after the 1st day of April, 1970, the value of any travel concession or assistance received by or due to such individual,- a from his employer for himself, his spouse and children, in connection with his proceeding on leave to his home- district in India b from his employer or former employer for himself, his spouse and children, in connection with his proceeding to his home- district in India after retirement from service or after the termination of his service ii in relation to any other assessment year, the value of any travel concession or assistance received by or due to such individual,- 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 Provided that the amount exempt under item a or item b of this sub- clause shall not, except in such cases and under such circumstances, as may be prescribed, having regard to the travel concession or assistance granted to the employees of the Central Government, exceed the value of the travel concession or assistance which would have been received by or due to the individual in connection with his proceeding to his home district in India on leave or, as the case may be, after retirement from service-- 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 2 Home district Meaning.- The following criteria have been laid down for determining home district for the purposes of section 10 5 999999. -- or after the termination of his service. Explanation.- For the purposes of this sub- 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. The new clause 5 substituted by the Direct Tax Laws Amendment Act, 1987 w. e. f. 1- 4- 1989 was again substituted by the Direct Tax Laws Second Amendment Act, 1989 with effect from the same date making the earlier amendment of academic interest only. a the place declared by the assessee is one which requires his physical presence at intervals, for discharging various domestic or social obligations and if so, after his entry into service he had been visiting that place frequently or b the assessee owns residential property in the place or is a member of the joint family having such property there or c his near relations are resident in that place or d prior to his entry into service he had been living there for some years. If any of these conditions is satisfied, the assessee may be allowed to claim a particular place as his home district.
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 2 Home district Meaning.- The following criteria have been laid down for determining home district for the purposes of section 10 5 999999. -- or after the termination of his service. Explanation.- For the purposes of this sub- 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. The new clause 5 substituted by the Direct Tax Laws Amendment Act, 1987 w. e. f. 1- 4- 1989 was again substituted by the Direct Tax Laws Second Amendment Act, 1989 with effect from the same date making the earlier amendment of academic interest only. a the place declared by the assessee is one which requires his physical presence at intervals, for discharging various domestic or social obligations and if so, after his entry into service he had been visiting that place frequently or b the assessee owns residential property in the place or is a member of the joint family having such property there or c his near relations are resident in that place or d prior to his entry into service he had been living there for some years. If any of these conditions is satisfied, the assessee may be allowed to claim a particular place as his home district.
the spouse and children of the individual and
the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual 2 Home district Meaning.- The following criteria have been laid down for determining home district for the purposes of section 10 5 999999. -- or after the termination of his service. Explanation.- For the purposes of this sub- 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. The new clause 5 substituted by the Direct Tax Laws Amendment Act, 1987 w. e. f. 1- 4- 1989 was again substituted by the Direct Tax Laws Second Amendment Act, 1989 with effect from the same date making the earlier amendment of academic interest only. a the place declared by the assessee is one which requires his physical presence at intervals, for discharging various domestic or social obligations and if so, after his entry into service he had been visiting that place frequently or b the assessee owns residential property in the place or is a member of the joint family having such property there or c his near relations are resident in that place or d prior to his entry into service he had been living there for some years. If any of these conditions is satisfied, the assessee may be allowed to claim a particular place as his home district.
a the place declared by the assessee is one which requires his physical presence at intervals, for discharging various domestic or social obligations and if so, after his entry into service he had been visiting that place frequently or
b the assessee owns residential property in the place or is a member of the joint family having such property there or
c his near relations are resident in that place or
d prior to his entry into service he had been living there for some years. If any of these conditions is satisfied, the assessee may be allowed to claim a particular place as his home district.
5A in the case of an individual who is not a citizen of India and is a non- resident, who comes to India solely in connection with the shooting of a cinematograph film in India by the individual, firm or company referred to in clause d of the Explanation to clause i of sub- section 1 of section 9, any remuneration received by him for rendering any service in connection with such shooting
5B in the case of an individual who renders services as a technician in the employment commencing from a date after the 31st day of March, 1993 of the Government or of a local authority or of any corporation set up under any special law or of any such institution or body established in India for carrying on scientific research as is approved for the purposes of this clause or sub- clause viia of clause 6 by the prescribed authority or in any business carried on in India and the individual was not resident in India in any of the four financial years immediately preceding the financial year in which he arrived in India and the tax on his income for such services chargeable under the head Salaries is paid to the Central Government by the employer which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 19563 1 of 1956 , the tax so paid by the employer for a period not exceeding forty- eight months commencing from the date of his arrival in India Provided that the Central Government may, if it considers it necessary or expedient in the public interest so to do, waive the condition relating to non- residence in India as specified in this clause in the case of any individual who is employed in India for designing, erection or commissioning of machinery or plant or supervising activities connected with such designing, erection or commissioning. Explanation.- For the purposes of this clause, technician means a person having specialised knowledge and experience in- i constructional or manufacturing operations, or in mining or in the generation of electricity or any other form of power, or ii agriculture, animal husbandry, dairy farming, deep sea fishing or ship building, or iii such other field as the Central Government may, having regard to availability of Indians having specialised knowledge and 1. Inserted by the Taxation Laws Amendment Act, 1984, w. r. e. f. 1- 4- 1982. 2. Inserted by the Finance Act, 1993, w. e. f. 1- 4- 1994. experience therein, the needs of the country and other relevant circumstances, by notification in the Official Gazette, specify, who is employed in India in a capacity in which such specialised knowledge and experience are actually utilised
constructional or manufacturing operations, or in mining or in the generation of electricity or any other form of power, or
agriculture, animal husbandry, dairy farming, deep sea fishing or ship building, or
such other field as the Central Government may, having regard to availability of Indians having specialised knowledge and 1. Inserted by the Taxation Laws Amendment Act, 1984, w. r. e. f. 1- 4- 1982. 2. Inserted by the Finance Act, 1993, w. e. f. 1- 4- 1994. experience therein, the needs of the country and other relevant circumstances, by notification in the Official Gazette, specify, who is employed in India in a capacity in which such specialised knowledge and experience are actually utilised
6 in the case of an individual who is not a citizen of India,- i subject to such conditions as the Central Government may prescribe, passage moneys or the value of any free or concessional passage received by or due to such individual- a from his employer, for himself, his spouse and children, in connection with his proceeding on home leave out of India aa from his employer, for his children having full time education in any educational institution outside India, in connection with their proceeding to India during vacation b from his employer or former employer for himself, his spouse and children, in connection with his proceeding to his home country out of India after retirement from service in India or after the termination of such service ii the remuneration received by him as an official, by whatever name 1. The fields of i grading and evaluation of diamonds for diamond export or import trade ii cookery and iii information technology including computer architecture systems platforms and associated technology, software development process and tools have been specified 2. Substituted by the Taxation Laws Amendment Act, 1970, w. r. e. f 1- 4- 1962. 4. Inserted by the Finance No. 2 Act, 1977, w. r. e. f. 1- 4- 1972. 5. Substituted for sub- clauses ii to v by the Finance Act, 1988, w. e. f. 1- 4- 1989. Prior to the substitution, sub- clauses ii to v read as under ii the remuneration received by him as ambassador, high commissioner, envoy, minister, charged affaires, commissioner, counsellor or the secretary, adviser or attache of an embassy, high commission, legation or commission of a foreign State, for service in such capacity iii the remuneration received by him as a consul de carrier, whether called a consul general, consul, vice- consul, consular agent, pro- consul or by any other name, of a foreign State for service in such capacity iv 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 , if the remuneration of the corresponding officials, if any, of the Government resident for similar purposes in the country concerned enjoys a similar exemption in that country v the remuneration received by him as a member of the staff of any of the officials referred to in clause ii , clause iii or clause iv , if the member- a is a subject of the country represented-, b is not engaged in any business or profession or employment in India otherwise than as a member of such staff and further, where the individual is a member of the staff of any official referred to in clause iv if the country represented has made corresponding provisions for similar exemptions in the case of members of the staff of the corresponding officials of the Government. 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 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 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 the remuneration received by him as an employee of, or a consultant to, an institution or association or a body established or formed outside India solely for philanthropic purposes, for services rendered by him in India in connection with such purposes, provided that such institution or association or body and the purposes for which his services are rendered in India are approved by the Central Government Vii Omitted by the Finance Act, 1993 , w. e. f 1- 4- 1993 . 1. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 2. Prior to the omission, sub- clause vii , as originally enacted and amended by the Finance Act, 1964, w. e. f. 1- 4- 1964 Finance Act, 1965, w. e. f. 1- 4- 1965 and the Taxation Laws Amendment Act, 1970, w. e. f. 1- 4- 1971, read as under vii the remuneration due to or received by him chargeable under the head Salaries for services rendered as a technician in the employment commencing from a date before the 1st day of April, 1971 of the Government or of a local authority or of any corporation set up under any special law or in any business carried on in India, if he was not resident in any of the four financial years immediately preceding the financial year in which he arrived in India to the extent mentioned below- a where his contract of service is approved by the Central Government before the commencement of his service or within one year of such commencement- i in the case of a technician who has special knowledge and experience in industrial or business management techniques, such remuneration due to or received by him during the period of six-- viia where such individual renders services as a technician in the employment of the Government or of a local authority or of any corporation set up under any special law or of any such institution or body established in India for carrying on scientific research as is approved for the purposes of this sub- clause by the prescribed authority or in any business carried on in India and the individual was not resident in India in any of the four financial years immediately preceding the financial year in which he arrived in India, the remuneration for such services due to or received by him, which is chargeable under the head Salaries, to the extent mentioned below, namely- 999999. -- months commencing from the date of his arrival in India ii in the case of any other technician, such remuneration due to or received by him during the thirty- six months commencing from the date of his arrival in India, and where any such person continues with the approval of the Central Government obtained before the 1st day of October of the relevant assessment year to remain in employment in India after the expiry of the thirty- six months aforesaid and the tax on his income chargeable under the head Salaries is paid by the employer to the Central Government which tax in the case of an employer being a company may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 1 of 1956 , the tax so paid by the employer for a period not exceeding sixty months following the expiry of the thirty- six months aforesaid b in any other case, not being the case of a technician who has special knowledge and experience in industrial or business management techniques, such remuneration due to or received by him for the period of three hundred and sixty- five days in all commencing from the date of his arrival in India. Explanation.- For the purposes of this sub- clause, Technician means a person having specialised knowledge and experience in- i constructional or manufacturing operations, or in mining or in the generation or distribution of electricity or any other form of power, or ii industrial or business management techniques, who is employed in India in a capacity in which such specialised knowledge and experience are actually utilised. 1. Inserted by the Taxation Laws Amendment Act, 1970, w. e. f. 1- 4- 3 The words commencing from a date after the 31st day of March, 1971 omitted by the Finance Act, 1988 , w. e. f. 1- 4- 1988 . 4 Substituted for the following conditions are fulfilled, namely, that- 1 the individual was not resident in India in any of the four financial years immediately preceding the financial year in which he arrived in India, and 2 the contract of his service in India is approved by the Central Government, the application for such approval having been made to that Government before the commencement of such service or within six months of such commencement, by the Finance Act, 1992 , w. e. f. 1- 6- 1992 . 1 where such services commence from a date after the 31st day of March, 1971 but before the 1st day of April, 1988 ,- A such remuneration due to or received by him during the period of twenty- four months commencing from the date of his arrival in India, in so far as such remuneration does not exceed an amount calculated at the rate of four thousand rupees per month, and where the tax on the excess, if any, of such remuneration for the period aforesaid over the amount so calculated is paid to the Central Government, by the employer which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 2 1 of 1956 , also the tax so paid by the employer and B where he continues, with the approval of the Central Government obtained before the 1st day of October of the relevant assessment year, to remain in employment in India after the expiry of the period of twenty- four months aforesaid and the tax on his income chargeable under the head Salaries is paid to the Central Government by the employer which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 3 1 of 1956 , the tax so paid by the employer for a period not exceeding twenty- four months next following the expiry of the first mentioned twenty- four months 11 where such services commence from a date after the 31st day of March, 1988 but before the 1st day of April, 1993 , and tax on his income chargeable under the head Salaries is paid to the Central Government by the employer which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 19566 1 of 1956 , the tax so paid by the employer for a period not exceeding forty- eight months commencing from the date of his arrival in India Omitted by the Finance Act, 1992 , w. e. f 1- 6- 1992 . 1. Substituted for A such remuneration due to or received by him by the Finance Act, 1988, w. e. f. 1- 4- 1988. 3. Ibid. 4. Substituted for Provided that by the Finance Act, 1988, w. e. f 1- 4- 1988. 5. Inserted by the Finance Act, 1993, w. e. f. 1- 4- 1993. 7. Prior to the omission, the proviso, as inserted by the Finance Act, 1988, w. e. f. 1- 4- 1988, read as under Provided that nothing in this item shall relate to a period exceeding twenty- four months commencing from the date of his arrival in India if the approval of the Central Government for his employment in India for such period is not obtained before the 1st day of October of the relevant assessment year Provided that the Central Government may, if it considers it necessary or expedient in the public interest so to do, waive the condition relating to non- residence in India as specified in this sub- clause in the case of any individual who is employed in India for designing, erection or commissioning of machinery or plant or supervising activities connected with such designing, erection or commissioning. Explanation.- For the purposes of this sub- clause, technician means a person having specialised knowledge and experience in- i constructional or manufacturing operations, or in mining or in the generation of electricity or any other form of power, or ii agriculture, animal husbandry, dairy farming, deep sea fishing or ship building, or iii such other field 6 as the Central Government may, having regard to the availability of Indians having specialised knowledge and experience therein, the needs of the country and other relevant circumstances, by notification in the Official Gazette, specify, who is employed in India in a capacity in which such specialised knowledge and experience are actually utilised 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 any income chargeable under the head Salaries received by or due to him during the thirty- six months commencing from the date of his arrival in India for service rendered as a professor or other teacher in a University or other educational institution, and where any such individual continues to remain in employment in India after the expiry of the thirty- six months aforesaid and the tax on his income chargeable under the head Salaries is paid by the University or other educational institution concerned to the 1. Inserted by the Direct Taxes Amendment Act, 1974, w. r. e. f. 1- 4- 1973. 2. The word further omitted by the Finance Act, 1992, w. e. f. 1- 6- 1992. Earlier, it was Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1988. 3. Substituted for condition specified in item 1 of by the Finance Act, 1992, w. e. f. 1- 6- 1992. 4. Inserted by the Finance Act, 1979, w. e. f. 1- 6- 1979. 5. Ibid. 6. The fields of grading and evaluation of diamonds for diamond export or import trade cookery information technology including computer architecture systems platforms and associated technology, software development process and tools have been notified 7. Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. Central Government, the tax so paid for a period not exceeding twenty- four months following the expiry of the thirty- six months aforesaid, provided in either case the following conditions are fulfilled, namely- i such individual was not resident in any of the four financial years immediately preceding the financial year in which he arrived in India and ii his contract of service is approved by the Central Government- a on or before the 1st day of October, 1964 , in the case of a professor or other teacher whose service commenced before the 1st day of April, 1964 b before the commencement of his service or within one year of such commencement, in any other case x any sum due to or received by him, during the twenty- four months commencing from the date of his arrival in India, for undertaking any research work in India, provided the following conditions are fulfilled, namely- a the research work is undertaken in connection with a research scheme approved in this behalf by the Central Government on or before the 1st day of October of the relevant assessment year and b such sum is payable or paid directly or indirectly by the Government of a foreign State or any institution or association or other body established outside India 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 refer- red 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 1. Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 3. Inserted by the Finance Act, 1976, w. e. f. 1- 4- 1976.
subject to such conditions as the Central Government may prescribe, passage moneys or the value of any free or concessional passage received by or due to such individual- a from his employer, for himself, his spouse and children, in connection with his proceeding on home leave out of India aa from his employer, for his children having full time education in any educational institution outside India, in connection with their proceeding to India during vacation b from his employer or former employer for himself, his spouse and children, in connection with his proceeding to his home country out of India after retirement from service in India or after the termination of such service
a from his employer, for himself, his spouse and children, in connection with his proceeding on home leave out of India
aa from his employer, for his children having full time education in any educational institution outside India, in connection with their proceeding to India during vacation
b from his employer or former employer for himself, his spouse and children, in connection with his proceeding to his home country out of India after retirement from service in India or after the termination of such service
the remuneration received by him as an official, by whatever name 1. The fields of i grading and evaluation of diamonds for diamond export or import trade ii cookery and iii information technology including computer architecture systems platforms and associated technology, software development process and tools have been specified 2. Substituted by the Taxation Laws Amendment Act, 1970, w. r. e. f 1- 4- 1962. 4. Inserted by the Finance No. 2 Act, 1977, w. r. e. f. 1- 4- 1972. 5. Substituted for sub- clauses ii to v by the Finance Act, 1988, w. e. f. 1- 4- 1989. Prior to the substitution, sub- clauses ii to v read as under ii the remuneration received by him as ambassador, high commissioner, envoy, minister, charged affaires, commissioner, counsellor or the secretary, adviser or attache of an embassy, high commission, legation or commission of a foreign State, for service in such capacity iii the remuneration received by him as a consul de carrier, whether called a consul general, consul, vice- consul, consular agent, pro- consul or by any other name, of a foreign State for service in such capacity iv 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 , if the remuneration of the corresponding officials, if any, of the Government resident for similar purposes in the country concerned enjoys a similar exemption in that country v the remuneration received by him as a member of the staff of any of the officials referred to in clause ii , clause iii or clause iv , if the member- a is a subject of the country represented-, b is not engaged in any business or profession or employment in India otherwise than as a member of such staff and further, where the individual is a member of the staff of any official referred to in clause iv if the country represented has made corresponding provisions for similar exemptions in the case of members of the staff of the corresponding officials of the Government. 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 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
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
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 the remuneration received by him as an employee of, or a consultant to, an institution or association or a body established or formed outside India solely for philanthropic purposes, for services rendered by him in India in connection with such purposes, provided that such institution or association or body and the purposes for which his services are rendered in India are approved by the Central Government
Vii Omitted by the Finance Act, 1993 , w. e. f 1- 4- 1993 . 1. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 2. Prior to the omission, sub- clause vii , as originally enacted and amended by the Finance Act, 1964, w. e. f. 1- 4- 1964 Finance Act, 1965, w. e. f. 1- 4- 1965 and the Taxation Laws Amendment Act, 1970, w. e. f. 1- 4- 1971, read as under vii the remuneration due to or received by him chargeable under the head Salaries for services rendered as a technician in the employment commencing from a date before the 1st day of April, 1971 of the Government or of a local authority or of any corporation set up under any special law or in any business carried on in India, if he was not resident in any of the four financial years immediately preceding the financial year in which he arrived in India to the extent mentioned below- a where his contract of service is approved by the Central Government before the commencement of his service or within one year of such commencement- i in the case of a technician who has special knowledge and experience in industrial or business management techniques, such remuneration due to or received by him during the period of six--
viia where such individual renders services as a technician in the employment of the Government or of a local authority or of any corporation set up under any special law or of any such institution or body established in India for carrying on scientific research as is approved for the purposes of this sub- clause by the prescribed authority or in any business carried on in India and the individual was not resident in India in any of the four financial years immediately preceding the financial year in which he arrived in India, the remuneration for such services due to or received by him, which is chargeable under the head Salaries, to the extent mentioned below, namely- 999999. -- months commencing from the date of his arrival in India ii in the case of any other technician, such remuneration due to or received by him during the thirty- six months commencing from the date of his arrival in India, and where any such person continues with the approval of the Central Government obtained before the 1st day of October of the relevant assessment year to remain in employment in India after the expiry of the thirty- six months aforesaid and the tax on his income chargeable under the head Salaries is paid by the employer to the Central Government which tax in the case of an employer being a company may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 1 of 1956 , the tax so paid by the employer for a period not exceeding sixty months following the expiry of the thirty- six months aforesaid b in any other case, not being the case of a technician who has special knowledge and experience in industrial or business management techniques, such remuneration due to or received by him for the period of three hundred and sixty- five days in all commencing from the date of his arrival in India. Explanation.- For the purposes of this sub- clause, Technician means a person having specialised knowledge and experience in- i constructional or manufacturing operations, or in mining or in the generation or distribution of electricity or any other form of power, or ii industrial or business management techniques, who is employed in India in a capacity in which such specialised knowledge and experience are actually utilised. 1. Inserted by the Taxation Laws Amendment Act, 1970, w. e. f. 1- 4- 3 The words commencing from a date after the 31st day of March, 1971 omitted by the Finance Act, 1988 , w. e. f. 1- 4- 1988 . 4 Substituted for the following conditions are fulfilled, namely, that- 1 the individual was not resident in India in any of the four financial years immediately preceding the financial year in which he arrived in India, and 2 the contract of his service in India is approved by the Central Government, the application for such approval having been made to that Government before the commencement of such service or within six months of such commencement, by the Finance Act, 1992 , w. e. f. 1- 6- 1992 . 1 where such services commence from a date after the 31st day of March, 1971 but before the 1st day of April, 1988 ,- A such remuneration due to or received by him during the period of twenty- four months commencing from the date of his arrival in India, in so far as such remuneration does not exceed an amount calculated at the rate of four thousand rupees per month, and where the tax on the excess, if any, of such remuneration for the period aforesaid over the amount so calculated is paid to the Central Government, by the employer which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 2 1 of 1956 , also the tax so paid by the employer and B where he continues, with the approval of the Central Government obtained before the 1st day of October of the relevant assessment year, to remain in employment in India after the expiry of the period of twenty- four months aforesaid and the tax on his income chargeable under the head Salaries is paid to the Central Government by the employer which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 3 1 of 1956 , the tax so paid by the employer for a period not exceeding twenty- four months next following the expiry of the first mentioned twenty- four months 11 where such services commence from a date after the 31st day of March, 1988 but before the 1st day of April, 1993 , and tax on his income chargeable under the head Salaries is paid to the Central Government by the employer which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 19566 1 of 1956 , the tax so paid by the employer for a period not exceeding forty- eight months commencing from the date of his arrival in India Omitted by the Finance Act, 1992 , w. e. f 1- 6- 1992 . 1. Substituted for A such remuneration due to or received by him by the Finance Act, 1988, w. e. f. 1- 4- 1988. 3. Ibid. 4. Substituted for Provided that by the Finance Act, 1988, w. e. f 1- 4- 1988. 5. Inserted by the Finance Act, 1993, w. e. f. 1- 4- 1993. 7. Prior to the omission, the proviso, as inserted by the Finance Act, 1988, w. e. f. 1- 4- 1988, read as under Provided that nothing in this item shall relate to a period exceeding twenty- four months commencing from the date of his arrival in India if the approval of the Central Government for his employment in India for such period is not obtained before the 1st day of October of the relevant assessment year Provided that the Central Government may, if it considers it necessary or expedient in the public interest so to do, waive the condition relating to non- residence in India as specified in this sub- clause in the case of any individual who is employed in India for designing, erection or commissioning of machinery or plant or supervising activities connected with such designing, erection or commissioning. Explanation.- For the purposes of this sub- clause, technician means a person having specialised knowledge and experience in-
1 the individual was not resident in India in any of the four financial years immediately preceding the financial year in which he arrived in India, and
2 the contract of his service in India is approved by the Central Government, the application for such approval having been made to that Government before the commencement of such service or within six months of such commencement, by the Finance Act, 1992 , w. e. f. 1- 6- 1992 .
1 where such services commence from a date after the 31st day of March, 1971 but before the 1st day of April, 1988 ,- A such remuneration due to or received by him during the period of twenty- four months commencing from the date of his arrival in India, in so far as such remuneration does not exceed an amount calculated at the rate of four thousand rupees per month, and where the tax on the excess, if any, of such remuneration for the period aforesaid over the amount so calculated is paid to the Central Government, by the employer which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 2 1 of 1956 , also the tax so paid by the employer and B where he continues, with the approval of the Central Government obtained before the 1st day of October of the relevant assessment year, to remain in employment in India after the expiry of the period of twenty- four months aforesaid and the tax on his income chargeable under the head Salaries is paid to the Central Government by the employer which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 3 1 of 1956 , the tax so paid by the employer for a period not exceeding twenty- four months next following the expiry of the first mentioned twenty- four months
A such remuneration due to or received by him during the period of twenty- four months commencing from the date of his arrival in India, in so far as such remuneration does not exceed an amount calculated at the rate of four thousand rupees per month, and where the tax on the excess, if any, of such remuneration for the period aforesaid over the amount so calculated is paid to the Central Government, by the employer which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 2 1 of 1956 , also the tax so paid by the employer and
B where he continues, with the approval of the Central Government obtained before the 1st day of October of the relevant assessment year, to remain in employment in India after the expiry of the period of twenty- four months aforesaid and the tax on his income chargeable under the head Salaries is paid to the Central Government by the employer which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 3 1 of 1956 , the tax so paid by the employer for a period not exceeding twenty- four months next following the expiry of the first mentioned twenty- four months
11 where such services commence from a date after the 31st day of March, 1988 but before the 1st day of April, 1993 , and tax on his income chargeable under the head Salaries is paid to the Central Government by the employer which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 19566 1 of 1956 , the tax so paid by the employer for a period not exceeding forty- eight months commencing from the date of his arrival in India Omitted by the Finance Act, 1992 , w. e. f 1- 6- 1992 . 1. Substituted for A such remuneration due to or received by him by the Finance Act, 1988, w. e. f. 1- 4- 1988. 3. Ibid. 4. Substituted for Provided that by the Finance Act, 1988, w. e. f 1- 4- 1988. 5. Inserted by the Finance Act, 1993, w. e. f. 1- 4- 1993. 7. Prior to the omission, the proviso, as inserted by the Finance Act, 1988, w. e. f. 1- 4- 1988, read as under Provided that nothing in this item shall relate to a period exceeding twenty- four months commencing from the date of his arrival in India if the approval of the Central Government for his employment in India for such period is not obtained before the 1st day of October of the relevant assessment year Provided that the Central Government may, if it considers it necessary or expedient in the public interest so to do, waive the condition relating to non- residence in India as specified in this sub- clause in the case of any individual who is employed in India for designing, erection or commissioning of machinery or plant or supervising activities connected with such designing, erection or commissioning. Explanation.- For the purposes of this sub- clause, technician means a person having specialised knowledge and experience in-
constructional or manufacturing operations, or in mining or in the generation of electricity or any other form of power, or
agriculture, animal husbandry, dairy farming, deep sea fishing or ship building, or
such other field 6 as the Central Government may, having regard to the availability of Indians having specialised knowledge and experience therein, the needs of the country and other relevant circumstances, by notification in the Official Gazette, specify, who is employed in India in a capacity in which such specialised knowledge and experience are actually utilised
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
any income chargeable under the head Salaries received by or due to him during the thirty- six months commencing from the date of his arrival in India for service rendered as a professor or other teacher in a University or other educational institution, and where any such individual continues to remain in employment in India after the expiry of the thirty- six months aforesaid and the tax on his income chargeable under the head Salaries is paid by the University or other educational institution concerned to the 1. Inserted by the Direct Taxes Amendment Act, 1974, w. r. e. f. 1- 4- 1973. 2. The word further omitted by the Finance Act, 1992, w. e. f. 1- 6- 1992. Earlier, it was Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1988. 3. Substituted for condition specified in item 1 of by the Finance Act, 1992, w. e. f. 1- 6- 1992. 4. Inserted by the Finance Act, 1979, w. e. f. 1- 6- 1979. 5. Ibid. 6. The fields of grading and evaluation of diamonds for diamond export or import trade cookery information technology including computer architecture systems platforms and associated technology, software development process and tools have been notified 7. Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. Central Government, the tax so paid for a period not exceeding twenty- four months following the expiry of the thirty- six months aforesaid, provided in either case the following conditions are fulfilled, namely-
such individual was not resident in any of the four financial years immediately preceding the financial year in which he arrived in India and
his contract of service is approved by the Central Government- a on or before the 1st day of October, 1964 , in the case of a professor or other teacher whose service commenced before the 1st day of April, 1964 b before the commencement of his service or within one year of such commencement, in any other case
a on or before the 1st day of October, 1964 , in the case of a professor or other teacher whose service commenced before the 1st day of April, 1964
b before the commencement of his service or within one year of such commencement, in any other case
any sum due to or received by him, during the twenty- four months commencing from the date of his arrival in India, for undertaking any research work in India, provided the following conditions are fulfilled, namely- a the research work is undertaken in connection with a research scheme approved in this behalf by the Central Government on or before the 1st day of October of the relevant assessment year and b such sum is payable or paid directly or indirectly by the Government of a foreign State or any institution or association or other body established outside India 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,-
a the research work is undertaken in connection with a research scheme approved in this behalf by the Central Government on or before the 1st day of October of the relevant assessment year and
b such sum is payable or paid directly or indirectly by the Government of a foreign State or any institution or association or other body established outside India
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,-
the Government or
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
any company which is a subsidiary of a company refer- red to in item ii or
any corporation established by or under a Central, State or Provincial Act or
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 1. Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 3. Inserted by the Finance Act, 1976, w. e. f. 1- 4- 1976.
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 and,- 1. Inserted by the Finance Act, 1983, 3. Substituted for the following by the Finance Act, 1992, w. e. f. 1- 6- 1992 and approved by the Central Government, the tax on such income is payable, under the terms of such agreement, by Government or the Indian concern to the Central Government, the tax so paid 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
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 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 by the Central Government, the tax so paid
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 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
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 1. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1988. 2. Ibid. 3. Inserted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989.
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 1. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1988. 2. Ibid. 3. Inserted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989.
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 2 for the purposes of this clause
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 2 for the purposes of this clause
any individual, who is either not a citizen of India or, being a citizen of India, is not ordinarily resident in India, or
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 2 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
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
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
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 1. Inserted by the Finance No. 2 Act, 1991, w. e. f 1- 4- 1991 2. Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, in concurrence with Member Income- tax of the Board 3. Ibid. 4. Inserted by the Finance No. 2 Act, 1991, w. e. f 1- 4- 1991 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 43 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 dependents 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 1. Inserted by the Finance No. 2 Act, 1991, w. e. f 1- 4- 1991 2. Substituted by the Finance Act, 1974, w. e. f. 1- 4- 1975. Earlier, it was amended by the Finance Act, 1972, w. e. f. 1- 4- 1973 and the Finance Act, 1974 itself w. r. e. f. 1- 6- 1972 1- 4- 1962. 5. Substituted for calculated on the basis of the average salary for the three years immediately preceding the year in which the gratuity is paid, subject to a maximum of thirty- six thousand rupees or twenty months salary so calculated, whichever is less by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. The italicised words were substituted for thirty thousand by the Finance Act, 1983, w. r. e. f. 1- 4- 1982. 6. Substituted for shall not exceed thirty- six thousand rupees by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. The italicised words were substituted for thirty thousand by the Finance Act, 1983, w. r. e. f. 1- 4- 1982. 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 IOAA , salary shall have the meaning assigned to it in clause h of rule 2 of Part A of the Fourth Schedule 1. Substituted for shall not exceed thirty- six thousand rupees by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. The italicised words were substituted for thirty thousand by the Finance Act, 1983, w. r. e. f. 1- 4- 1982. 2. Omitted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. Prior to the omission, the third and fourth provisos, as amended by the Finance Act, 1983, w. r. e. f. read as under Provided also that the Central Government may, having regard to the maximum amount which may for the time being be exempt under sub- clause i increase, by notification in the Official Gazette, the limit of thirty- six thousand rupees, for all the three purposes for which it has been mentioned in the foregoing provisions of this clause, up to such maximum amount Provided also that in relation to cases in which the event that is to say retirement of the employee or his becoming incapacitated or termination of his employment or his death, as the case may be on which gratuity is received had taken place before the 31st day of January, 1982, the proviso immediately preceding this proviso shall not apply and the remaining provisions of this clause shall have effect as if for the words thirty six thousand rupees, at the three places where they occur, the words thirty thousand rupees had been substituted. 3. Substituted for In this clause by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 3 All the three limits specified in the section will operate as cumulative conditions and the exempt portion of the gratuity will be restricted to any of these three limits whichever is the least. Retirement gratuity will be exempt to the extent mentioned in the latter half of the section and the remaining amount will be entitled to relief under section 89 1. In the case of gratuity funds approved for the purposes of Income- tax Act a provision authorising the payment of gratuity to an employee while he continues to remain in service should not be allowed. The latter half of the section should be regarded as covering the case of only a gratuity payment on the employee s retirement or on his becoming incapacitated or on termination of his employment or on his death. The rules of a fund approved for the purposes of Income tax Act should not permit the payment of gratuity in the form of annuities payable over a specified number of years. In order to claim the exemption under the section it is necessary that the amount of gratuity should be calculated exactly on the basis laid down in the section. Letter No. 1 1 79 162, dated 13th December, 1962 4 The expression termination of employment used in the section as amended by Finance Act, 1972 covers the case of an employee whose services come to an end due to his resignation. 5 Limit of exemption of death- cum- retirement gratuity under section 10 10 iii has been raised to Rs. 1 lakh in relation to employees who retire of become incapacitated or die on or after 1st April, 1988 or whose employment is terminated on or after that date.
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 43 of that Act
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 dependents 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 1. Inserted by the Finance No. 2 Act, 1991, w. e. f 1- 4- 1991 2. Substituted by the Finance Act, 1974, w. e. f. 1- 4- 1975. Earlier, it was amended by the Finance Act, 1972, w. e. f. 1- 4- 1973 and the Finance Act, 1974 itself w. r. e. f. 1- 6- 1972 1- 4- 1962. 5. Substituted for calculated on the basis of the average salary for the three years immediately preceding the year in which the gratuity is paid, subject to a maximum of thirty- six thousand rupees or twenty months salary so calculated, whichever is less by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. The italicised words were substituted for thirty thousand by the Finance Act, 1983, w. r. e. f. 1- 4- 1982. 6. Substituted for shall not exceed thirty- six thousand rupees by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. The italicised words were substituted for thirty thousand by the Finance Act, 1983, w. r. e. f. 1- 4- 1982. 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 IOAA , salary shall have the meaning assigned to it in clause h of rule 2 of Part A of the Fourth Schedule 1. Substituted for shall not exceed thirty- six thousand rupees by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. The italicised words were substituted for thirty thousand by the Finance Act, 1983, w. r. e. f. 1- 4- 1982. 2. Omitted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. Prior to the omission, the third and fourth provisos, as amended by the Finance Act, 1983, w. r. e. f. read as under Provided also that the Central Government may, having regard to the maximum amount which may for the time being be exempt under sub- clause i increase, by notification in the Official Gazette, the limit of thirty- six thousand rupees, for all the three purposes for which it has been mentioned in the foregoing provisions of this clause, up to such maximum amount Provided also that in relation to cases in which the event that is to say retirement of the employee or his becoming incapacitated or termination of his employment or his death, as the case may be on which gratuity is received had taken place before the 31st day of January, 1982, the proviso immediately preceding this proviso shall not apply and the remaining provisions of this clause shall have effect as if for the words thirty six thousand rupees, at the three places where they occur, the words thirty thousand rupees had been substituted. 3. Substituted for In this clause by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 3 All the three limits specified in the section will operate as cumulative conditions and the exempt portion of the gratuity will be restricted to any of these three limits whichever is the least. Retirement gratuity will be exempt to the extent mentioned in the latter half of the section and the remaining amount will be entitled to relief under section 89 1. In the case of gratuity funds approved for the purposes of Income- tax Act a provision authorising the payment of gratuity to an employee while he continues to remain in service should not be allowed. The latter half of the section should be regarded as covering the case of only a gratuity payment on the employee s retirement or on his becoming incapacitated or on termination of his employment or on his death. The rules of a fund approved for the purposes of Income tax Act should not permit the payment of gratuity in the form of annuities payable over a specified number of years. In order to claim the exemption under the section it is necessary that the amount of gratuity should be calculated exactly on the basis laid down in the section. Letter No. 1 1 79 162, dated 13th December, 1962 4 The expression termination of employment used in the section as amended by Finance Act, 1972 covers the case of an employee whose services come to an end due to his resignation. 5 Limit of exemption of death- cum- retirement gratuity under section 10 10 iii has been raised to Rs. 1 lakh in relation to employees who retire of become incapacitated or die on or after 1st April, 1988 or whose employment is terminated on or after that date.
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 2. Substituted for to the members of the Defence Services or to the employees of a State Government, a local authority by the Finance Act, 1974, w. r. e. f. 1- 4- 1962.
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 2. Substituted for to the members of the Defence Services or to the employees of a State Government, a local authority by the Finance Act, 1974, w. r. e. f. 1- 4- 1962.
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 2. Substituted for to the members of the Defence Services or to the employees of a State Government, a local authority by the Finance Act, 1974, w. r. e. f. 1- 4- 1962.
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 refer- red 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 4 whether on superannuation or otherwise as does not exceed eight 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 1. Omitted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. Prior to the omission, the proviso read as under Provided that the maximum limit of payment specified in sub- clause ii a or subclause ii b shall not apply in respect of any such payment made before the 19th day of August, 1965 2. Inserted by the Finance Act, 1982, w. r. e. f. 1- 4- 1978. 3. Inserted by the Taxation Laws Amendment Act, 1984, w. r. e. f. 1- 4- 1978. 4. Inserted by the Taxation Laws Amendment Act, 1984, w. r. e. f. 1- 4- 1978. 5. Substituted for six by the Direct Tax Laws Amendment Act, 1987, w. r. e. f. 1- 7- 1986. 6. Inserted by the Taxation Laws Amendment Act, 1984, w. r. e. f. 1- 4- 1978. 7. Substituted for or thirty thousand rupees, whichever is less by the Direct Tax Laws Amendment Act, 1987, w. r. e. f. 1- 7- 1986. 9. Substituted for shall not exceed thirty thousand rupees by the Direct Tax Laws Amendment Act, 1987, w. r. e. f. 1- 7- 1986. 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
any payment of the nature refer- red 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 4 whether on superannuation or otherwise as does not exceed eight 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 1. Omitted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. Prior to the omission, the proviso read as under Provided that the maximum limit of payment specified in sub- clause ii a or subclause ii b shall not apply in respect of any such payment made before the 19th day of August, 1965 2. Inserted by the Finance Act, 1982, w. r. e. f. 1- 4- 1978. 3. Inserted by the Taxation Laws Amendment Act, 1984, w. r. e. f. 1- 4- 1978. 4. Inserted by the Taxation Laws Amendment Act, 1984, w. r. e. f. 1- 4- 1978. 5. Substituted for six by the Direct Tax Laws Amendment Act, 1987, w. r. e. f. 1- 7- 1986. 6. Inserted by the Taxation Laws Amendment Act, 1984, w. r. e. f. 1- 4- 1978. 7. Substituted for or thirty thousand rupees, whichever is less by the Direct Tax Laws Amendment Act, 1987, w. r. e. f. 1- 7- 1986. 9. Substituted for shall not exceed thirty thousand rupees by the Direct Tax Laws Amendment Act, 1987, w. r. e. f. 1- 7- 1986. 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, 19477 14 of 1947 or 1. Substituted for shall not exceed thirty thousand rupees by the Direct Tax Laws Amendment Act, 1987, w. r. e. f. 1- 7- 1986. 2. Omitted, ibid. Prior to the omission, the third and fourth provisos, as amended by the Taxation Laws Amendment Act, 1984, w. r. e. f. 1- 4- 1978, read as under Provided also that the Central Government may, having regard to the maximum amount which may for the time being be exempt under sub- clause i , increase, by notification in the Official Gazette, the limit of thirty thousand rupees, for all the three purposes for which it has been mentioned in the foregoing provisions of this sub- clause, up to such maximum amount Provided also that in relation to an employee retiring whether on superannuation or otherwise before the 1st day of January, 1982, the proviso immediately preceding this proviso shall not apply and the remaining provisions of this sub- clause shall have effect as if for the words thirty thousand rupees, at the three places where they occur, the words twenty- five thousand five hundred rupees had been substituted. 3. i omitted by the Direct Tax Laws Amendment Act, 1987, w. r. e. f. 1- 7- 1986. 4. Omitted, ibid. Prior to the omission, clause ii read as under ii salary shall have the meaning assigned to it in clause h of rule 2 of Part A of the Fourth Schedule 5. Inserted by the Finance Act, 1975, w. e. f. 1- 4- 1976. 6. Substituted for the following by the Finance Act, 1985, w. e. f. 1- 4- 1986 at the time of his retrenchment, to the extent such compensation does 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 twenty thousand rupees, whichever is less. 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 2 14 of 1947
an amount calculated in accordance with the provisions of clause b of section 25F of the Industrial Disputes Act, 19477 14 of 1947 or 1. Substituted for shall not exceed thirty thousand rupees by the Direct Tax Laws Amendment Act, 1987, w. r. e. f. 1- 7- 1986. 2. Omitted, ibid. Prior to the omission, the third and fourth provisos, as amended by the Taxation Laws Amendment Act, 1984, w. r. e. f. 1- 4- 1978, read as under Provided also that the Central Government may, having regard to the maximum amount which may for the time being be exempt under sub- clause i , increase, by notification in the Official Gazette, the limit of thirty thousand rupees, for all the three purposes for which it has been mentioned in the foregoing provisions of this sub- clause, up to such maximum amount Provided also that in relation to an employee retiring whether on superannuation or otherwise before the 1st day of January, 1982, the proviso immediately preceding this proviso shall not apply and the remaining provisions of this sub- clause shall have effect as if for the words thirty thousand rupees, at the three places where they occur, the words twenty- five thousand five hundred rupees had been substituted. 3. i omitted by the Direct Tax Laws Amendment Act, 1987, w. r. e. f. 1- 7- 1986. 4. Omitted, ibid. Prior to the omission, clause ii read as under ii salary shall have the meaning assigned to it in clause h of rule 2 of Part A of the Fourth Schedule 5. Inserted by the Finance Act, 1975, w. e. f. 1- 4- 1976. 6. Substituted for the following by the Finance Act, 1985, w. e. f. 1- 4- 1986 at the time of his retrenchment, to the extent such compensation does 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 twenty thousand rupees, whichever is less.
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-
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-
the service of the workman has been interrupted by such transfer or
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
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 2 14 of 1947
c the expressions employer and workman shall have the same meanings as in the Industrial Disputes Act, 1947 2 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 1. Substituted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. Prior to the substitution, clause ii read as under. ii fifty thousand rupees, 3. Inserted by the Finance Act, 1992, w. e. f. 14- 1992.
10C any amount received 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 4 3 of 1956 or vii an Indian Institute of Technology within the meaning of clause g of section 3 of the Institutes of Technology Act, 1961 5 59 of 1961 or viii such institute of management as the Central Government may, by notification in the Official Gazette, specify 6 in this behalf, at the time of his voluntary retirement in accordance with any scheme or schemes of voluntary retirement, to the extent such amount does not exceed five lakh rupees Provided that the schemes of the said companies or authorities 7 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 1. Substituted by the Finance Act, 1993, w. e. f. 1- 4- 1993. Prior to the substitution, clause 10C , as inserted by the Finance Act, 1987, w. e. f. 1- 4- 1987, read as under 10C any payment received by an employee of a public sector company at the time of his voluntary retirement in accordance with any scheme which the Central Government may, having regard to the economic viability of such company and other relevant circumstances, approve in this behalf The following clause 10C was substituted by the Finance Act, 1992, w. e. f. 1- 4- 1993 but it has been substituted again, as above, without coming into operation 10C any amount received by an employee of a public sector company or of any other company at the time of his voluntary retirement in accordance with any scheme or schemes of voluntary retirement Provided that the schemes of the said companies governing the payment of such amount are framed in accordance with such guidelines as may be prescribed for the public sector companies or for other companies and such guidelines may, inter alia, include criteria of economic viability and such schemes in relation to companies other than public sector companies are approved by the Chief Commissioner or, as the case may be, Director- General in this behalf 2. Inserted by the Finance Act, 1994, w. e. f. 1- 4- 1995. 3. Ibid. 6. The Indian Institutes of Management at Ahmedabad, Bangalore, Calcutta and Lucknow have been notified. 7. Inserted by the Finance Act, 1994, w. e. f. 1- 4- 1995. economic viability as may be prescribed and such schemes in relation to companies, referred to in sub- clause ii or co- operative societies referred to in sub- clause v are approved by the Chief Commissioner or, as the case may be, Director- General in this behalf 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
a public sector company or
any other company or
an authority established under a Central, State or Provincial Act or
a local authority or
a co- operative society,- or
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 4 3 of 1956 or
an Indian Institute of Technology within the meaning of clause g of section 3 of the Institutes of Technology Act, 1961 5 59 of 1961 or
such institute of management as the Central Government may, by notification in the Official Gazette, specify 6 in this behalf, at the time of his voluntary retirement in accordance with any scheme or schemes of voluntary retirement, to the extent such amount does not exceed five lakh rupees Provided that the schemes of the said companies or authorities 7 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 1. Substituted by the Finance Act, 1993, w. e. f. 1- 4- 1993. Prior to the substitution, clause 10C , as inserted by the Finance Act, 1987, w. e. f. 1- 4- 1987, read as under 10C any payment received by an employee of a public sector company at the time of his voluntary retirement in accordance with any scheme which the Central Government may, having regard to the economic viability of such company and other relevant circumstances, approve in this behalf The following clause 10C was substituted by the Finance Act, 1992, w. e. f. 1- 4- 1993 but it has been substituted again, as above, without coming into operation 10C any amount received by an employee of a public sector company or of any other company at the time of his voluntary retirement in accordance with any scheme or schemes of voluntary retirement Provided that the schemes of the said companies governing the payment of such amount are framed in accordance with such guidelines as may be prescribed for the public sector companies or for other companies and such guidelines may, inter alia, include criteria of economic viability and such schemes in relation to companies other than public sector companies are approved by the Chief Commissioner or, as the case may be, Director- General in this behalf 2. Inserted by the Finance Act, 1994, w. e. f. 1- 4- 1995. 3. Ibid. 6. The Indian Institutes of Management at Ahmedabad, Bangalore, Calcutta and Lucknow have been notified. 7. Inserted by the Finance Act, 1994, w. e. f. 1- 4- 1995. economic viability as may be prescribed and such schemes in relation to companies, referred to in sub- clause ii or co- operative societies referred to in sub- clause v are approved by the Chief Commissioner or, as the case may be, Director- General in this behalf 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
10D any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy other than any sum received under sub- section 3 of section 8ODDA
11 any payment from a provident fund to which the Provident Funds Act, 1925 5 19 of 1925 , applies or from any other provident fund set up by the Central Government and notified 7 by it in this behalf in the Official Gazette
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
13 any payment from an approved superannuation fund made- i on the death of a beneficiary or ii to any 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 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
on the death of a beneficiary or
to any 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
by way of refund of contributions on the death of a beneficiary or
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
13A any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent by 2. Inserted by the Finance Act, 1994, w. e. f. 1- 4- 1995. 3. Inserted by the Finance No. 2 Act, 1991 w. r. e. f. 1- 4- 1962. 4. Being inserted by the Finance Act, 1995, w. e. f. 1- 4- 1996. 6. Inserted by the Finance Act, 1968, w. e. f. 1- 4- 1969. 7. Public Provident Fund, Scheme, 1968 has been notified under this clause 8. Substituted by the Finance Act, 1965, w. r. e. f. 1- 4- 1962. 9. Inserted by the Direct Taxes Amendment Act, 1964, w. e. f. 6- 10- 1964. whatever name called in respect of residential accommodation occupied by the assessee, to such extent as may be prescribed having 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
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 For 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 1. The words not exceeding four hundred rupees per month omitted by the Finance Act, 1986, w. e. f. 1- 4- 1987. Earlier, four was substituted for three by the Finance Act, 1975, w. e. f. 1- 4- 1975. 2. Inserted by the Taxation Laws Amendment Act, 1984, w. r. e. f. 1- 4- 1976. 3. Substituted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. Prior to the substitution, clause 14 , as amended by the Finance Act, 1975, w. r. e. f. 1- 4- 1962, read as under 14 any special allowance or benefit, not being in the nature of an entertainment allowance or other 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, to the extent to which such expenses are actually incurred for that purpose. Explanation.- For the removal of doubts, it is hereby declared that any allowance granted to the assessee 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 shall not be regarded, for the purposes of this clause, as a special allowance granted to meet expenses wholly, necessarily and exclusively incurred in the performance of such duties. 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
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 any income received by a public financial institution as exchange risk premium from any person borrowing foreign currency from such institution, provided the amount of such premium is credited by such institution to a fund specified under clause 23E . Explanation.- For the purposes of this clause,- i the expression public financial institution shall have the meaning assigned to it in section 4A of the Companies Act, 1956 6 1 of 1956 ii the expression exchange risk premium means a premium paid by a person borrowing foreign currency from a public financial institution to cover the risk which may be borne by such institution on account of fluctuations in exchange rate of foreign currencies borrowed by such institution
the expression public financial institution shall have the meaning assigned to it in section 4A of the Companies Act, 1956 6 1 of 1956
the expression exchange risk premium means a premium paid by a person borrowing foreign currency from a public financial institution to cover the risk which may be borne by such institution on account of fluctuations in exchange rate of foreign currencies borrowed by such institution
15 i income by way of interest, premium on redemption or other 1. Substituted for as the Central Government may, by notification in the Official Gazette, specify by the Finance Act, 1995, w. e. f. 1- 7- 199. 5. 3. Substituted for as the Central Government may, by notification in the Official Gazette, specify, to the extent specified in the notification by the Finance Act, 1995, w. e. f. 1- 7- 1995. 4. Inserted by the Direct Tax Laws Second Amendment Act, 1989 w. r. e. f. 1- 4- 1989. 5. Inserted by the, Finance Act, 1989, w. e. f. 1- 4- 1989. 7. Substituted for sub- clauses i , ia , ib , ii and iia by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. Prior to the substitution, sub- clause ia , as inserted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1965, w. e. f. 4- 12- 1965 sub- clause ib , as inserted by the Special Bearer Bonds Immunities and Exemptions Act, 1981, w. e. f. 12- 1- 1981 sub- clause ii , as amended by the Finance No. 2 Act, 1965, w. e. f. 11- 9- 1965, the Finance Act, 1979, w. e. f. 1- 4- 1980 and the Finance Act, 1987, w. r. e. f. 1- 4- 1983 and sub- clause iia , as inserted by the Finance Act, 1968, w. e. f. 1- 4- 1969, read as under i monthly payment on the 15-Year Annuity Certificates issued by or under the authority of the Central Government or such other annuity certificates issued by or under the authority of that Government as that Government may, by notification in the Official Gazette, specify in this behalf, to the extent to which the amounts of the certificates do not exceed in each case the 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 3 in the case of an individual or a Hindu undivided family, interest on such Capital Investment Bonds 4 as the Central Government may, by notification in the Official Gazette, specify in this behalf 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 6 in this behalf iid interest on such bonds, as the Central Government may, by notifications 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 999999. -- maximum amount which is permitted to be invested therein ia annual payment on National Defence Gold Bonds, 1980 ib premium on the redemption of Special Bearer Bonds, 1991 ii interest on Treasury Savings- Deposit Certificates, Post Office Cash Certificates, Post Office National Savings Certificates, National Plan Certificates, Twelve- Year National Plan Savings Certificates and such other certificates, issued by the Central. Government as that Government may, by notification in the Official Gazette, specify in this behalf, interest on deposits in Post Office Savings Bank and bonus in respect of deposits under the Post Office Cumulative Time Deposits Rules, 1981, to the extent to which the amounts of such certificates or deposits do not exceed in each case the maximum amount which is permitted to be invested or deposited therein Provided that where in the case of an assessee the interest on deposits in a Public Account of the nature referred to in item 6 in the Table below rule 4 of the Post Office Savings Account Rules, 1981, exceeds two thousand two hundred and fifty rupees, the amount of interest on such deposits that shall not be included in the total income of the assessee under this sub- clause shall be two thousand two hundred and fifty rupees iia interest on fixed deposits under any scheme framed by the Central Government and notified by it in this behalf in the Official Gazette, to the extent to which the amounts of such deposits do not exceed, in each case, the maximum amount which is permitted to be deposited therein. 2. Inserted by the Finance Act, 1982, w. e. f. 1- 4- 1983. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 5. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989. 6. The 9 Relief Bonds 1987, notified by notification dated 17- 11- 1987, shall be deemed to have been notified for the purposes of this sub- clause 7. Inserted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. 8. The NRI Bonds, 1988 and NRI Bonds Second Series have been notified. c any individual to whom the bonds have been gifted by the nonresident 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 subclause shall continue to apply in relation to such individual Provided also that in a case where the bonds are uncashed 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. 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 iv interest payable- a by Government or a local authority on moneys borrowed by it from , or debts owed by it to, sources outside India b by an industrial undertaking in India on moneys borrowed by it under a loan agreement entered into with any such financial institution in a foreign country as may be approved 4 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 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 1. Inserted by the Finance Act, 1985, w. e. f. 1- 4- 1985. 2. Substituted for the Explanation to clause iii of sub- section 5 of section 11 by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 6. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 7. Substituted for in any case where the loan or debt is approved by the Central Government, having regard to its terms generally and in particular to the terms of its repayment by the Finance Act, 1964, w. e. f. 1- 4- 1964. 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.- 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 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, 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, 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 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 1. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 2. Inserted by the Direct Taxes Amendment Act, 1974, w. r. e. f. 1- 4- 1973. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 4. Inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1991 5. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1992. 6. Inserted by the Direct Taxes Amendment Act, 1974, w. r. e. f. 1- 4- 1973. 7. Inserted by the Finance Act, 1976, w. e. f. 1- 6- 1976. by it in foreign currency from sources outside India under a loan agreement approved by the Central Government 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 61, 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 shall have the meaning assigned to it in clause ii of the Explanation to clause viia of subsection 1 of section 36 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 approved by the Central Government for the purposes of 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, 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, 19736 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 1. Inserted by the Finance No. 2 Act, 1991, w. e. f 1- 4- 1991 2. Inserted by the Finance Act, 1993, w. e. f. 1- 4- 1993. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 4. Substituted for this item by the Finance Act, 1983, w. e. f. 1- 4- 1983. 5. Inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1991 7. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1987. 9. Inserted by the Finance Act, 1989, w. e. f. 1- 4- 1990. Government or a State Government, 1 or a public sector company 3 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.- 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 b the business of generation or distribution of electricity or any other form of power or c mining or d the construction of ships or e the operation of ships or aircrafts v interest on- a securities held by the Welfare Commissioner, Bhopal Gas Victims, Bhopal, in the Reserve Bank s SGL Account No. SLIDHO 48 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 2. Inserted by the Finance Act, 1990 w. e. f. 4. Inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1991 5. Substituted by the Finance Act, 1995, w. e. f. 1- 4- 199. 5. Prior to the substitution, subclause v , as inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1989, read as under v interest on securities held by the Welfare Commissioner, Bhopal Gas Victims, Bhopal, in Reserve Bank s SGL Account No. SL DHO 48. Earlier, the italicised words were substituted for Registrar, Supreme Court by the Finance Act, 1993, w. r. e. f. 2- 11- 1992. Under section 10 15 ii read with proviso c to section 13 of the Post Office Savings Certificates Rules, 1960 , in the event of death of a joint holder of the certificates, the surviving joint holder would continue to get exemption from tax on the interest received upto the maximum amount permitted to be held in the case of joint holdings.
income by way of interest, premium on redemption or other 1. Substituted for as the Central Government may, by notification in the Official Gazette, specify by the Finance Act, 1995, w. e. f. 1- 7- 199. 5. 3. Substituted for as the Central Government may, by notification in the Official Gazette, specify, to the extent specified in the notification by the Finance Act, 1995, w. e. f. 1- 7- 1995. 4. Inserted by the Direct Tax Laws Second Amendment Act, 1989 w. r. e. f. 1- 4- 1989. 5. Inserted by the, Finance Act, 1989, w. e. f. 1- 4- 1989. 7. Substituted for sub- clauses i , ia , ib , ii and iia by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. Prior to the substitution, sub- clause ia , as inserted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1965, w. e. f. 4- 12- 1965 sub- clause ib , as inserted by the Special Bearer Bonds Immunities and Exemptions Act, 1981, w. e. f. 12- 1- 1981 sub- clause ii , as amended by the Finance No. 2 Act, 1965, w. e. f. 11- 9- 1965, the Finance Act, 1979, w. e. f. 1- 4- 1980 and the Finance Act, 1987, w. r. e. f. 1- 4- 1983 and sub- clause iia , as inserted by the Finance Act, 1968, w. e. f. 1- 4- 1969, read as under i monthly payment on the 15-Year Annuity Certificates issued by or under the authority of the Central Government or such other annuity certificates issued by or under the authority of that Government as that Government may, by notification in the Official Gazette, specify in this behalf, to the extent to which the amounts of the certificates do not exceed in each case the 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 3 in the case of an individual or a Hindu undivided family, interest on such Capital Investment Bonds 4 as the Central Government may, by notification in the Official Gazette, specify in this behalf
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 6 in this behalf
iid interest on such bonds, as the Central Government may, by notifications 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 999999. -- maximum amount which is permitted to be invested therein ia annual payment on National Defence Gold Bonds, 1980 ib premium on the redemption of Special Bearer Bonds, 1991 ii interest on Treasury Savings- Deposit Certificates, Post Office Cash Certificates, Post Office National Savings Certificates, National Plan Certificates, Twelve- Year National Plan Savings Certificates and such other certificates, issued by the Central. Government as that Government may, by notification in the Official Gazette, specify in this behalf, interest on deposits in Post Office Savings Bank and bonus in respect of deposits under the Post Office Cumulative Time Deposits Rules, 1981, to the extent to which the amounts of such certificates or deposits do not exceed in each case the maximum amount which is permitted to be invested or deposited therein Provided that where in the case of an assessee the interest on deposits in a Public Account of the nature referred to in item 6 in the Table below rule 4 of the Post Office Savings Account Rules, 1981, exceeds two thousand two hundred and fifty rupees, the amount of interest on such deposits that shall not be included in the total income of the assessee under this sub- clause shall be two thousand two hundred and fifty rupees iia interest on fixed deposits under any scheme framed by the Central Government and notified by it in this behalf in the Official Gazette, to the extent to which the amounts of such deposits do not exceed, in each case, the maximum amount which is permitted to be deposited therein. 2. Inserted by the Finance Act, 1982, w. e. f. 1- 4- 1983. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 5. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989. 6. The 9 Relief Bonds 1987, notified by notification dated 17- 11- 1987, shall be deemed to have been notified for the purposes of this sub- clause 7. Inserted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. 8. The NRI Bonds, 1988 and NRI Bonds Second Series have been notified. c any individual to whom the bonds have been gifted by the nonresident 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 subclause shall continue to apply in relation to such individual Provided also that in a case where the bonds are uncashed 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. 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
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 999999. -- maximum amount which is permitted to be invested therein ia annual payment on National Defence Gold Bonds, 1980 ib premium on the redemption of Special Bearer Bonds, 1991 ii interest on Treasury Savings- Deposit Certificates, Post Office Cash Certificates, Post Office National Savings Certificates, National Plan Certificates, Twelve- Year National Plan Savings Certificates and such other certificates, issued by the Central. Government as that Government may, by notification in the Official Gazette, specify in this behalf, interest on deposits in Post Office Savings Bank and bonus in respect of deposits under the Post Office Cumulative Time Deposits Rules, 1981, to the extent to which the amounts of such certificates or deposits do not exceed in each case the maximum amount which is permitted to be invested or deposited therein Provided that where in the case of an assessee the interest on deposits in a Public Account of the nature referred to in item 6 in the Table below rule 4 of the Post Office Savings Account Rules, 1981, exceeds two thousand two hundred and fifty rupees, the amount of interest on such deposits that shall not be included in the total income of the assessee under this sub- clause shall be two thousand two hundred and fifty rupees iia interest on fixed deposits under any scheme framed by the Central Government and notified by it in this behalf in the Official Gazette, to the extent to which the amounts of such deposits do not exceed, in each case, the maximum amount which is permitted to be deposited therein. 2. Inserted by the Finance Act, 1982, w. e. f. 1- 4- 1983. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 5. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989. 6. The 9 Relief Bonds 1987, notified by notification dated 17- 11- 1987, shall be deemed to have been notified for the purposes of this sub- clause 7. Inserted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. 8. The NRI Bonds, 1988 and NRI Bonds Second Series have been notified.
c any individual to whom the bonds have been gifted by the nonresident 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 subclause shall continue to apply in relation to such individual Provided also that in a case where the bonds are uncashed 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. 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
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
interest payable- a by Government or a local authority on moneys borrowed by it from , or debts owed by it to, sources outside India b by an industrial undertaking in India on moneys borrowed by it under a loan agreement entered into with any such financial institution in a foreign country as may be approved 4 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 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 1. Inserted by the Finance Act, 1985, w. e. f. 1- 4- 1985. 2. Substituted for the Explanation to clause iii of sub- section 5 of section 11 by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 6. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 7. Substituted for in any case where the loan or debt is approved by the Central Government, having regard to its terms generally and in particular to the terms of its repayment by the Finance Act, 1964, w. e. f. 1- 4- 1964. 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.- 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 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, 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, 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 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 1. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 2. Inserted by the Direct Taxes Amendment Act, 1974, w. r. e. f. 1- 4- 1973. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 4. Inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1991 5. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1992. 6. Inserted by the Direct Taxes Amendment Act, 1974, w. r. e. f. 1- 4- 1973. 7. Inserted by the Finance Act, 1976, w. e. f. 1- 6- 1976. by it in foreign currency from sources outside India under a loan agreement approved by the Central Government 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 61, 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 shall have the meaning assigned to it in clause ii of the Explanation to clause viia of subsection 1 of section 36 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 approved by the Central Government for the purposes of 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, 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, 19736 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 1. Inserted by the Finance No. 2 Act, 1991, w. e. f 1- 4- 1991 2. Inserted by the Finance Act, 1993, w. e. f. 1- 4- 1993. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 4. Substituted for this item by the Finance Act, 1983, w. e. f. 1- 4- 1983. 5. Inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1991 7. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1987. 9. Inserted by the Finance Act, 1989, w. e. f. 1- 4- 1990. Government or a State Government, 1 or a public sector company 3 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.- 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 b the business of generation or distribution of electricity or any other form of power or c mining or d the construction of ships or e the operation of ships or aircrafts
a by Government or a local authority on moneys borrowed by it from , or debts owed by it to, sources outside India
b by an industrial undertaking in India on moneys borrowed by it under a loan agreement entered into with any such financial institution in a foreign country as may be approved 4 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 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 1. Inserted by the Finance Act, 1985, w. e. f. 1- 4- 1985. 2. Substituted for the Explanation to clause iii of sub- section 5 of section 11 by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 6. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 7. Substituted for in any case where the loan or debt is approved by the Central Government, having regard to its terms generally and in particular to the terms of its repayment by the Finance Act, 1964, w. e. f. 1- 4- 1964. 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.- 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
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, 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, 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 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 1. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 2. Inserted by the Direct Taxes Amendment Act, 1974, w. r. e. f. 1- 4- 1973. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 4. Inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1991 5. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1992. 6. Inserted by the Direct Taxes Amendment Act, 1974, w. r. e. f. 1- 4- 1973. 7. Inserted by the Finance Act, 1976, w. e. f. 1- 6- 1976. by it in foreign currency from sources outside India under a loan agreement approved by the Central Government 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 61, 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 shall have the meaning assigned to it in clause ii of the Explanation to clause viia of subsection 1 of section 36
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 approved by the Central Government for the purposes of 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, 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, 19736 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
by Government on deposits made by an employee of the Central 1. Inserted by the Finance No. 2 Act, 1991, w. e. f 1- 4- 1991 2. Inserted by the Finance Act, 1993, w. e. f. 1- 4- 1993. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 4. Substituted for this item by the Finance Act, 1983, w. e. f. 1- 4- 1983. 5. Inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1991 7. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1987. 9. Inserted by the Finance Act, 1989, w. e. f. 1- 4- 1990. Government or a State Government, 1 or a public sector company 3 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.- 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 b the business of generation or distribution of electricity or any other form of power or c mining or d the construction of ships or e the operation of ships or aircrafts
interest on- a securities held by the Welfare Commissioner, Bhopal Gas Victims, Bhopal, in the Reserve Bank s SGL Account No. SLIDHO 48 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 2. Inserted by the Finance Act, 1990 w. e. f. 4. Inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1991 5. Substituted by the Finance Act, 1995, w. e. f. 1- 4- 199. 5. Prior to the substitution, subclause v , as inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1989, read as under v interest on securities held by the Welfare Commissioner, Bhopal Gas Victims, Bhopal, in Reserve Bank s SGL Account No. SL DHO 48. Earlier, the italicised words were substituted for Registrar, Supreme Court by the Finance Act, 1993, w. r. e. f. 2- 11- 1992. Under section 10 15 ii read with proviso c to section 13 of the Post Office Savings Certificates Rules, 1960 , in the event of death of a joint holder of the certificates, the surviving joint holder would continue to get exemption from tax on the interest received upto the maximum amount permitted to be held in the case of joint holdings.
a securities held by the Welfare Commissioner, Bhopal Gas Victims, Bhopal, in the Reserve Bank s SGL Account No. SLIDHO 48
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 2. Inserted by the Finance Act, 1990 w. e. f. 4. Inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1991 5. Substituted by the Finance Act, 1995, w. e. f. 1- 4- 199. 5. Prior to the substitution, subclause v , as inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1989, read as under v interest on securities held by the Welfare Commissioner, Bhopal Gas Victims, Bhopal, in Reserve Bank s SGL Account No. SL DHO 48. Earlier, the italicised words were substituted for Registrar, Supreme Court by the Finance Act, 1993, w. r. e. f. 2- 11- 1992. Under section 10 15 ii read with proviso c to section 13 of the Post Office Savings Certificates Rules, 1960 , in the event of death of a joint holder of the certificates, the surviving joint holder would continue to get exemption from tax on the interest received upto the maximum amount permitted to be held in the case of joint holdings.
15A any payment made, by an Indian company engaged in the business of operation of aircraft, to acquire an aircraft on lease from the Government of a foreign State or a foreign enterprise under an agreement approved by the Central Government in this behalf. Explanation.- For the purposes of this clause, foreign enterprise means a person who is a non- resident. The following clause 15A is being substituted for the above clause by the Finance Act, 1995 , w. e. f. 1- 4- 1996 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 approved by the Central Government in this behalf. 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 4any 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 1 ii any allowance received by any person by reason of his 1. Inserted by the Income- tax Amendment Act, 1989, w. e. f. 24- 1- 1989. 3. Substituted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1986. Prior to the substitution, clause 17 , as amended by the Finance Act, 1976, w. e. f. 1- 4- 1976, read as under 17 any daily allowance received by any person by reason of his membership of Parliament or of any State Legislature or of any Committee thereof or any allowance received by a member of either House of Parliament under the Members of Parliament Additional Facilities Rules, 1975 5. The word and omitted by the Finance Act, 1987, w. r. e. f. 1- 4- 1986. 6. Substituted by the Finance Act, 1987, w. r. e. f. 1- 4- 1986. Prior to the substitution, subclause ii , as substituted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1986, read as under ii all other allowances not exceeding rupees twelve hundred and fifty per month in the aggregate received by any person by reason of his membership of Parliament or of any Committee thereof, or all other allowances not exceeding rupees six hundred per month in the aggregate received by any person by reason of his membership of any State Legislature or any committee thereof which the Central Government may, by notification in the Official Gazette, specify in this behalf membership of Parliament under the Members of Parliament Constituency Allowance Rules, 1986 iii all other allowances not exceeding six hundred rupees per month in the aggregate received by any person by reason of his membership of any State Legislature or of any Committee thereof, which the Central Government may, by notification in the Official Gazette, specify in this behalf
daily allowance received by any person by reason of his membership of Parliament or of any State Legislature or of any Committee thereof 1
any allowance received by any person by reason of his 1. Inserted by the Income- tax Amendment Act, 1989, w. e. f. 24- 1- 1989. 3. Substituted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1986. Prior to the substitution, clause 17 , as amended by the Finance Act, 1976, w. e. f. 1- 4- 1976, read as under 17 any daily allowance received by any person by reason of his membership of Parliament or of any State Legislature or of any Committee thereof or any allowance received by a member of either House of Parliament under the Members of Parliament Additional Facilities Rules, 1975 5. The word and omitted by the Finance Act, 1987, w. r. e. f. 1- 4- 1986. 6. Substituted by the Finance Act, 1987, w. r. e. f. 1- 4- 1986. Prior to the substitution, subclause ii , as substituted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1986, read as under ii all other allowances not exceeding rupees twelve hundred and fifty per month in the aggregate received by any person by reason of his membership of Parliament or of any Committee thereof, or all other allowances not exceeding rupees six hundred per month in the aggregate received by any person by reason of his membership of any State Legislature or any committee thereof which the Central Government may, by notification in the Official Gazette, specify in this behalf membership of Parliament under the Members of Parliament Constituency Allowance Rules, 1986
all other allowances not exceeding six hundred rupees per month in the aggregate received by any person by reason of his membership of any State Legislature or of any Committee thereof, which the Central Government may, by notification in the Official Gazette, specify in this behalf
17A 2any 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
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
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
18A any ex gratia payments made by the Central Government consequent on the abolition of privy purse
19
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 1. Substituted for clauses 17A , 17B and 18 by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. Prior to the substitution, these clauses clause 17A , as inserted by Direct Taxes Amendment Act, 1974, w. r. e. f. 1- 4- 1973 and amended by the Finance Act, 1980, w. e. f. 1- 4- 1980 and clause 17B , as inserted by the Direct Taxes Amendment Act, 1974, w. r. e. f. 1- 4- 1973 read as under 17A any payment made, whether in cash or in kind, in pursuance of awards for literary, scientific or artistic work or attainment or for service for alleviating the distress of the poor, the weak and the ailing, or for proficiency in sports and games, instituted by the Central Government or by any State Government or approved by the Central Government in this behalf Provided that the approval granted by the Central Government shall have effect for such assessment year or years including an assessment year or years commencing before the date on which such approval is granted as may be specified in the order granting the approval 17B any payment made, whether in cash or in kind, 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 payment made, whether in cash or in kind, by the Central Government or any State Government in pursuance of gallantry awards instituted or approved by the Central Government. 3. Inserted by the Rulers of Indian States Abolition of Privileges Act, 1972, w. e. f. 9- 9- 1972. 4. Omitted, ibid, w. e. f. 2- 4- 1973. 5. Inserted, ibid, w. r. e. f. 28- 12- 1971 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
20A any income of an authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages or for both
21 7 any income of a scientific research association for the time being approved for the purpose of clause ii of sub- section 1 of section 35 Provided that the scientific 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- 2. The words Interest on securities, omitted by the Finance Act, 1988, w. e. f. 1- 4- 1989. 3. Substituted for within its own jurisdictional area by the Finance No. 2 Act, 1971, w. e. f. 1- 4- 1972. 4. Inserted by the Finance Act, 1970, w. r. e. f. 1- 4- 1962. 6. Substituted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1990. Prior to the substitution, clause 21 , as amended by the Finance Act, 1983, w. e. f. 1- 4- 1984 and the Direct Tax Laws Amendment Act, 1987 and the Direct Tax Laws Amendment Act, 1989, both with effect from 1- 4- 1989, read as under 21 any income of a scientific research association for the time being approved for the purpose of clause ii of sub- section 1 of section 35 which is applied solely to the purposes of that association Provided that nothing contained in this clause shall apply if for any period during the previous year- i any sums by way of contributions received by the association are invested or deposited after the 28th day of February, 1983, otherwise than in any one or more of the forms or modes specified in sub- section 5 of section 11 or ii any funds of the association invested or deposited before the 1st day of March, 1983, otherwise than in any one or more of the forms or modes specified in sub- section 5 of section 11 continue to remain so invested or deposited after the 30th day of November, 1983 or iii any shares in a company not being a Government company as defined in section 617 of the Companies Act, 1956 1 of 1956 or a corporation established by or under a Central, State or Provincial Act are held by the association after the 30th day of November, 1983 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 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 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 shall be substituted and b does not invest or deposit its funds, other than- i any assets held by the scientific 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 scientific 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 scientific 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 scientific 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 1. Substituted by the Finance Act, 1992, w. r. e. f. 1- 4- 1990. Prior to the substitution, clause b , substituted as a part of clause 21 by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1990, read as under b does not invest or deposit its funds other than 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 2. Substituted for Provided further by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1990. Provided also that nothing contained in this clause shall apply in relation to any income of the scientific research association, being profits and gains of business, unless the business is incidental to the attainment of its objectives and separate books of accounts are maintained by it in respect of such business
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- 2. The words Interest on securities, omitted by the Finance Act, 1988, w. e. f. 1- 4- 1989. 3. Substituted for within its own jurisdictional area by the Finance No. 2 Act, 1971, w. e. f. 1- 4- 1972. 4. Inserted by the Finance Act, 1970, w. r. e. f. 1- 4- 1962. 6. Substituted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1990. Prior to the substitution, clause 21 , as amended by the Finance Act, 1983, w. e. f. 1- 4- 1984 and the Direct Tax Laws Amendment Act, 1987 and the Direct Tax Laws Amendment Act, 1989, both with effect from 1- 4- 1989, read as under 21 any income of a scientific research association for the time being approved for the purpose of clause ii of sub- section 1 of section 35 which is applied solely to the purposes of that association Provided that nothing contained in this clause shall apply if for any period during the previous year- i any sums by way of contributions received by the association are invested or deposited after the 28th day of February, 1983, otherwise than in any one or more of the forms or modes specified in sub- section 5 of section 11 or ii any funds of the association invested or deposited before the 1st day of March, 1983, otherwise than in any one or more of the forms or modes specified in sub- section 5 of section 11 continue to remain so invested or deposited after the 30th day of November, 1983 or iii any shares in a company not being a Government company as defined in section 617 of the Companies Act, 1956 1 of 1956 or a corporation established by or under a Central, State or Provincial Act are held by the association after the 30th day of November, 1983 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 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 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 shall be substituted and
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 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 of sub- section 1 of section 35
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 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 of sub- section 1 of section 35
in sub- section 3 , in clause a , for the words charitable or religious purposes, the words the purposes of scientific research shall be substituted and
b does not invest or deposit its funds, other than- i any assets held by the scientific 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 scientific 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 scientific 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 scientific 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 1. Substituted by the Finance Act, 1992, w. r. e. f. 1- 4- 1990. Prior to the substitution, clause b , substituted as a part of clause 21 by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1990, read as under b does not invest or deposit its funds other than 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 2. Substituted for Provided further by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1990. Provided also that nothing contained in this clause shall apply in relation to any income of the scientific research association, being profits and gains of business, unless the business is incidental to the attainment of its objectives and separate books of accounts are maintained by it in respect of such business
any assets held by the scientific research association where such assets form part of the corpus of the fund of the association as on the 1st day of June, 1973
any assets being debentures issued by, or on behalf of, any company or corporation , acquired by the scientific research association before the 1st day of March, 1983
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 scientific research association
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 scientific 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 1. Substituted by the Finance Act, 1992, w. r. e. f. 1- 4- 1990. Prior to the substitution, clause b , substituted as a part of clause 21 by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1990, read as under b does not invest or deposit its funds other than 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 2. Substituted for Provided further by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1990. Provided also that nothing contained in this clause shall apply in relation to any income of the scientific research association, being profits and gains of business, unless the business is incidental to the attainment of its objectives and separate books of accounts are maintained by it in respect of such business
22 any income of a university or other educational institution, existing solely for educational purposes and not for purposes of profit
22A 3any income of a 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
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 5 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
23 any income of an association or institution established in India 2. Inserted by the Finance Act, 1970, w. e. f. 1- 14- 1970. 4. Inserted by the Finance Act, 1994, w. e. f. 1- 4- 1994. 5. The Press Trust of India Ltd., New Delhi Notification No. 9638, dated 10- 11- 1994 and United News India Notification No. 9724, dated 21- 3- 1995 have been specified for the assessment years 1994 - 95 to 1996 - 97. 6. Substituted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1990. Prior to the substitution, clause 23 , as amended by the Direct Tax Laws Amendment Act, 1987 and Direct Tax Laws Amendment Act, 1989, both w. e. f. 1- 4- 1989, read as under 23 any income of an association or institution established in India having as its object the control, supervision, regulation or encouragement in India of the games of cricket, hockey, football, tennis or such other games or sports as the Central Government may, specify in this behalf from time to time by notification in the Official Gazette which may be notified by the Central Government in the Official Gazette having regard to the fact that the association or institution has as its object the control, supervision, regulation or encouragement in India of the games of cricket, hockey, football, tennis or such other games or sports 2 as the Central Government may, by notification in the Official Gazette, specify in this behalf Provided that the association or institution shall make an application in the prescribed form 3 and manner to the prescribed authority for the purpose of grant of the exemption, or continuance thereof, under this clause Provided further that the Central Government may, before notifying the association or institution under this clause call for such documents including audited annual accounts or information from the association, or institution as it thinks necessary in order to satisfy itself about the genuineness of the activities of the association or institution and that Government may also make such inquiries as it may deem necessary in this behalf Provided also that the association or institution,- 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 games or sports 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 the first proviso to this clause 999999. Provided that- i the association or institution applies its income, or accumulates it for application, solely to the objects for which it is established ii no part of the income of the association or institution is distributed in any manner to its members except as grants to any association or institution affiliated to it and iii 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 ii in sub- section 3 in clause a for the words charitable or religious purposes, the words the purposes of games or sports shall be substituted and b does not invest or deposit its funds, other than- i any assets held by the association or institution where such assets form part of the corpus of the fund of the association or institution 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 association or institution 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 association or 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 and c does not distribute any part of its income in any manner to its members except as grants to any association or institution affiliated to it Provided also that the exemption under this clause 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 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 third proviso to this clause, subject to the condition that such voluntary contribution is not held by the association or 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 this clause shall apply in relation to any income of the association or institution, being profits and 1. Substituted by the Finance Act, 1992, w. r. e. f. 1- 4- 1990. Prior to the substitution, clause b , substituted as a part of clause 23 by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1990, read as under b does not invest or deposit its funds other than 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 and 2. Substituted for 1992 by the Finance Act, 1992, w. e. f. 1- 4- 1992, which was earlier substituted for 1990 by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1990. 3. Inserted by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1990. 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 this clause in relation to any association or institution 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
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 games or sports 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 the first proviso to this clause 999999. Provided that- i the association or institution applies its income, or accumulates it for application, solely to the objects for which it is established ii no part of the income of the association or institution is distributed in any manner to its members except as grants to any association or institution affiliated to it and iii 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 ii in sub- section 3 in clause a for the words charitable or religious purposes, the words the purposes of games or sports shall be substituted and
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 games or sports 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 the first proviso to this clause 999999. Provided that- i the association or institution applies its income, or accumulates it for application, solely to the objects for which it is established ii no part of the income of the association or institution is distributed in any manner to its members except as grants to any association or institution affiliated to it and iii 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
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 games or sports 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 the first proviso to this clause 999999. Provided that- i the association or institution applies its income, or accumulates it for application, solely to the objects for which it is established ii no part of the income of the association or institution is distributed in any manner to its members except as grants to any association or institution affiliated to it and iii 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
in sub- section 3 in clause a for the words charitable or religious purposes, the words the purposes of games or sports shall be substituted and
b does not invest or deposit its funds, other than- i any assets held by the association or institution where such assets form part of the corpus of the fund of the association or institution 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 association or institution 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 association or 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 and
any assets held by the association or institution where such assets form part of the corpus of the fund of the association or institution as on the 1st day of June, 1973
any assets being debentures issued by, or on behalf of, any company or corporation , acquired by the association or institution before the 1st day of March, 1983
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 association or institution
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 and
c does not distribute any part of its income in any manner to its members except as grants to any association or institution affiliated to it Provided also that the exemption under this clause 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 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 third proviso to this clause, subject to the condition that such voluntary contribution is not held by the association or 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 this clause shall apply in relation to any income of the association or institution, being profits and 1. Substituted by the Finance Act, 1992, w. r. e. f. 1- 4- 1990. Prior to the substitution, clause b , substituted as a part of clause 23 by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1990, read as under b does not invest or deposit its funds other than 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 and 2. Substituted for 1992 by the Finance Act, 1992, w. e. f. 1- 4- 1992, which was earlier substituted for 1990 by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1990. 3. Inserted by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1990. 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 this clause in relation to any association or institution 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
23A 2 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, 4 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 6 for the purpose of this clause by the Central Government by general or special order
the association or institution applies its income, or accumulates it for application, solely to the objects for which it is established and
the association or institution is for the time being approved 6 for the purpose of this clause by the Central Government by general or special order
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 dependents 1. Inserted by the Finance No. 2 Act, 1965, w. r. e. f. 1- 4- 1962. 3. The words Interest on securities omitted by the Finance Act, 1988, w. e. f. 1- 4- 1989. 7. Inserted by the Finance No. 2 Act, 1980, w. r. e. f. 1- 4- 1962.
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 fulfills 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
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
applies its income, or accumulates it for application, wholly and exclusively to the objects for which it is established,- and
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
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. 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
the institution applies its income, or accumulates it for application, solely for the development of khadi or village industries or both and
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. Explanation.- For the purposes of this clause,-
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
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 1. Being inserted by the Finance Act, 1995, w. e. f 1- 4- 1996. 2. Inserted by the Finance Act, 1974, w. e. f. 1- 6- 1974. 3. Inserted by the Finance Act, 1979, w. r. e. f. 1- 4- 1962.
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 3 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
23C 5any 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 iv any other fund or institution established for charitable purposes 1. Inserted by the Finance Act, 1979, w. r. e. f. 1- 4- 1962. 2. Inserted by the Finance Act, 1993, w. e. f. 1- 4- 1994. 3. The European Community International Institutional Partners ECIIP Scheme, 1993 has been specified vide Notification No. 971 1, dated 23- 2- 1995. 4. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1976. 6. Reintroduced by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. Earlier it was omitted by the Direct Tax Laws Amendment Act, 1987 with effect from the same date. 7. Inserted by the Finance Act, 1993, w. e. f. 1- 4- 1993. 8. Substituted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1990. Prior to the substitution, sub- clauses iv and v , as amended by the Direct Tax Laws Amendment Act, 1987 and Direct Tax Laws Amendment Act, 1989, both w. e. f. 1- 4- 1989, read as under iv any other fund or institution established for charitable purposes which may be notified by the Central Government in the Official Gazette, 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, being a trust or institution wholly for public religious purposes or wholly for public religious and charitable purposes, which may be notified by the Central Government in the Official Gazette, 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 purposes thereof--. which may be notified by the Central Government in the Official Gazette, 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 notified 2 by the Central Government in the Official Gazette, 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 Provided that the fund or trust or institution referred to in sub- clause iv or sub- clause v shall make an application in the prescribed form 3 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 Provided further that the Central Government may, Wore notifying the fund or trust or institution under sub- clause iv or sub- clause v , call for such documents including audited annual accounts or information from the fund or trust or institution as it thinks necessary in order to satisfy itself about the genuineness of the activities of the fund or trust or institution and that Government may also make such inquiries as it may deem necessary in this behalf Provided also that the fund or trust or institution referred to in sub- clause iv or sub- clause v - a applies its income, or accumulates it for application, wholly and exclusively to the objects for which it is established and b does not invest or deposit its funds, other than- i any assets held by the fund, trust or institution where such assets form part of the corpus of the 999999. Provided that any notification issued by the Central Government under sub- clause iv or sub- clause v shall have effect for such assessment year or years including an assessment year or years commencing before the date on which such notification is issued as may be specified in the notification 2. For complete list of specified trusts institutions, refer, ibid. 4. Substituted by the Finance Act, 1992, w. r. e. f. 1- 4- 1990. Prior to the substitution, clause b , substituted as a part of sub- clauses iv and v by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1990, read as under b does not invest or deposit its funds other than 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 fund, trust or institution 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 fund, trust or institution before the 1st day of March, 1983 iii any accretion to the shares, forming part of the corpus mentioned in sub- clause i , by way of bonus shares allotted to the fund, trust or institution iv voluntary contributions received and maintained in the form of jewellers, 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 anyfunds invested or deposited before the 1st day of April, 1989 , otherwise than in any one or more of the forms ormodes specified in sub- section 5 of section 11 if such funds do not continue to remain so invested or deposited after the 30thday of March, 1993 Provided also that the exemption under sub- clause iv or sub- clause v 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, otherwise than in any one or more of the forms or modes specified in sub- section 5 of section 1 1, 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 shall apply in relation to any income of the fund or trust or institution, being profits and gains of business, unless the business is incidental to the attainment of its objectives and separate books of accounts 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 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 1. Substituted for 1992 by the Finance Act, 1992, w. e. f. 1- 4- 1992, which was earlier substituted for 1990 by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1990. 2. Inserted by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1990. The term deemed to have been utilised in column 11 has been used to cover income of the type mentioned in Explanation 2 to sub- section 1 and sub- section 1A of section 11 so that such income may be excluded for determining compliance with the condition regarding application accumulation of income to the objects of the trusts institutions. In the amended Form 56 columns 16 and 17 seek information in respect of transactions contemplated in sub- sections 2 and 3 of section 13. This does not imply that the provisions of sections 11 and 1, 3 will be applied. It will enable the prescribed authority to know broadly that the institution trust is working genuinely towards its objects. 3 The Notifications issued under section 10 23C should specify the assessment year or years and be valid for that period which is specified therein and for no other period.
the Prime Minister s National Relief Fund or
the Prime Minister s Fund Promotion of Folk Art or
the Prime Minister s Aid to Students Fund or
iiia the National Foundation for Communal Harmony or
any other fund or institution established for charitable purposes 1. Inserted by the Finance Act, 1979, w. r. e. f. 1- 4- 1962. 2. Inserted by the Finance Act, 1993, w. e. f. 1- 4- 1994. 3. The European Community International Institutional Partners ECIIP Scheme, 1993 has been specified vide Notification No. 971 1, dated 23- 2- 1995. 4. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1976. 6. Reintroduced by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. Earlier it was omitted by the Direct Tax Laws Amendment Act, 1987 with effect from the same date. 7. Inserted by the Finance Act, 1993, w. e. f. 1- 4- 1993. 8. Substituted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1990. Prior to the substitution, sub- clauses iv and v , as amended by the Direct Tax Laws Amendment Act, 1987 and Direct Tax Laws Amendment Act, 1989, both w. e. f. 1- 4- 1989, read as under iv any other fund or institution established for charitable purposes which may be notified by the Central Government in the Official Gazette, 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, being a trust or institution wholly for public religious purposes or wholly for public religious and charitable purposes, which may be notified by the Central Government in the Official Gazette, 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 purposes thereof--. which may be notified by the Central Government in the Official Gazette, having regard to the objects of the fund or institution and its importance throughout India or throughout any State or States or
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 notified 2 by the Central Government in the Official Gazette, 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 Provided that the fund or trust or institution referred to in sub- clause iv or sub- clause v shall make an application in the prescribed form 3 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 Provided further that the Central Government may, Wore notifying the fund or trust or institution under sub- clause iv or sub- clause v , call for such documents including audited annual accounts or information from the fund or trust or institution as it thinks necessary in order to satisfy itself about the genuineness of the activities of the fund or trust or institution and that Government may also make such inquiries as it may deem necessary in this behalf Provided also that the fund or trust or institution referred to in sub- clause iv or sub- clause v - a applies its income, or accumulates it for application, wholly and exclusively to the objects for which it is established and b does not invest or deposit its funds, other than-
a applies its income, or accumulates it for application, wholly and exclusively to the objects for which it is established and
b does not invest or deposit its funds, other than-
any assets held by the fund, trust or institution where such assets form part of the corpus of the 999999. Provided that any notification issued by the Central Government under sub- clause iv or sub- clause v shall have effect for such assessment year or years including an assessment year or years commencing before the date on which such notification is issued as may be specified in the notification 2. For complete list of specified trusts institutions, refer, ibid. 4. Substituted by the Finance Act, 1992, w. r. e. f. 1- 4- 1990. Prior to the substitution, clause b , substituted as a part of sub- clauses iv and v by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1990, read as under b does not invest or deposit its funds other than 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 fund, trust or institution as on the 1st day of June, 1973
any assets being debentures issued by, or on behalf of, any company or corporation , acquired by the fund, trust or institution before the 1st day of March, 1983
any accretion to the shares, forming part of the corpus mentioned in sub- clause i , by way of bonus shares allotted to the fund, trust or institution
voluntary contributions received and maintained in the form of jewellers, 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 anyfunds invested or deposited before the 1st day of April, 1989 , otherwise than in any one or more of the forms ormodes specified in sub- section 5 of section 11 if such funds do not continue to remain so invested or deposited after the 30thday of March, 1993 Provided also that the exemption under sub- clause iv or sub- clause v 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, otherwise than in any one or more of the forms or modes specified in sub- section 5 of section 1 1, 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 shall apply in relation to any income of the fund or trust or institution, being profits and gains of business, unless the business is incidental to the attainment of its objectives and separate books of accounts 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 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 1. Substituted for 1992 by the Finance Act, 1992, w. e. f. 1- 4- 1992, which was earlier substituted for 1990 by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1990. 2. Inserted by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1990. The term deemed to have been utilised in column 11 has been used to cover income of the type mentioned in Explanation 2 to sub- section 1 and sub- section 1A of section 11 so that such income may be excluded for determining compliance with the condition regarding application accumulation of income to the objects of the trusts institutions. In the amended Form 56 columns 16 and 17 seek information in respect of transactions contemplated in sub- sections 2 and 3 of section 13. This does not imply that the provisions of sections 11 and 1, 3 will be applied. It will enable the prescribed authority to know broadly that the institution trust is working genuinely towards its objects. 3 The Notifications issued under section 10 23C should specify the assessment year or years and be valid for that period which is specified therein and for no other period.
23D any income of- 1. Substituted by the Finance Act, 1995, w. e. f. 1- 7- 1995. Prior to the substitution, clause 23D , as inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988 and subsequently amended, read as under 23D any income of such Mutual Fund set up by a public sector bank or a public financial institution or authorised by the Securities and Exchange Board of India or 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. Substituted for from by the Finance Act, 1988, w. e. f. 1- 4- 1988. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993. The words including the condition that at least ninety per cent of such income shall be distributed to the holders of its units every year, omitted by the Direct Tax Laws Amendment Act, 1989, w. r. e. f. 1- 4- 1988. Earlier, the words such income shall be distributed to the holder of its units were substituted for the income from the mutual fund shall be distributed to the unit holders by the Finance Act, 1988, w. e. f. 1- 4- 1988. The SBI Mutual Fund, LIC Mutual Fund, Indian Magnum Fund, N. V. Mutual Fund of SBI, Indian Bank Mutual Fund, PNB Mutual Fund, BOI Mutual Fund, BOB Mutual Fund, Asian Convertibles and Income Mutual Fund, Mutual Fund of GIC, Canbank Offshore Mutual Fund, Canbank Mutual Fund, ICICI Mutual Fund, Indbank Offshore Mutual Fund, Commonwealth Equity Fund Mutual Fund, Kothari Pioneer Mutual Fund, Taurus Mutual Fund, Morgan Stanley Mutual. Fund, Apple Mutual Fund, CRB Mutual Fund, Shriram Mutual Fund, 20th Century Mutual Fund, Birla Mutual Fund, J. M. Mutual Fund and IDBI Mutual Fund have since been notified under this clause, as it stood before the above substitution. 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 Undertakings Act, 1970 1 5 of 1970 , or under section 3 of the Banking Companies Acquisition and Transfer of Undertakings Act, 1980 2 40 of 1980 b the expression public financial institution shall have the meaning assigned to it in section 4A of the Companies Act, 19563 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 5 15 of 1992 .
a Mutual Fund registered under the Securities and Exchange Board of India Act, 1992 15 of 1992 or regulations made thereunder
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 Undertakings Act, 1970 1 5 of 1970 , or under section 3 of the Banking Companies Acquisition and Transfer of Undertakings Act, 1980 2 40 of 1980 b the expression public financial institution shall have the meaning assigned to it in section 4A of the Companies Act, 19563 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 5 15 of 1992 .
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 Undertakings Act, 1970 1 5 of 1970 , or under section 3 of the Banking Companies Acquisition and Transfer of Undertakings Act, 1980 2 40 of 1980
b the expression public financial institution shall have the meaning assigned to it in section 4A of the Companies Act, 19563 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 5 15 of 1992 .
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 5 15 of 1992 .
23E any income of such Exchange Risk Administration Fund set up by public financial institutions, 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 public financial institution, 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, the expression public financial institution shall have the meaning assigned to it in section 4A of the Companies Act, 1956 8 1 of 1956
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 2. Ibid. 3. Ibid. 4. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993. 6. Inserted by the Finance Act, 1989, w. e. f. 1- 4- 1989. 7. The Exchange Risk Administration Fund set up by IDBI, IFCI and ICICI vide Notification No. SO 872 E , dated 16- 11- 1990 and by Power Finance Corpn. Ltd. 9. Being inserted by the Finance Act, 1995, w. e. f. 1- 4- 1996. Provided that such venture capital fund or venture capital company is approved for the purposes of this clause by the prescribed authority 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 if the aforesaid equity shares are transferred other than in the event of the said shares being listed in a recognised stock exchange in India by a venture capital fund or a venture capital company to any person at any time within a period of three years from the date of their acquisition, the aggregate amount of income by way of dividends on such equity shares which has not been included in the total income of the previous year or years preceding the previous year in which such transfer has taken place shall be deemed to be the income of venture capital fund or of the venture capital company of the previous year in which such transfer has taken place Provided also that the exemption shall not be allowed in respect of the long- term capital gains, if any, arising on such transfer of equity shares as is mentioned in the third proviso. 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 manufacture or production of such articles or things including computer software as may be notified by the Central Government in this behalf
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 manufacture or production of such articles or things including computer software as may be notified by the Central Government in this behalf
24 any income chargeable under the heads Income from house property and Income from other sources of a registered union within the meaning of the Indian 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
25 i interest on securities which are held by, or are the property of, any provident fund to which the Provident Funds Act, 1925 2 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 1. The words Interest on securities, omitted by the Finance Act, 1988, w. e. f. 1- 4- 1989. iii any income received by the trustees on behalf of an approved superannuation fund iv any income received by the trustees on behalf on an approved gratuity fund v any income received- a by the Board of Trustees constituted under the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 3 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 4 19 of 1952 , on behalf of the Deposit- linked Insurance Fund established under section 6C of that Act
any income received by the trustees on behalf of a recognised provident fund 1. The words Interest on securities, omitted by the Finance Act, 1988, w. e. f. 1- 4- 1989.
any income received by the trustees on behalf of an approved superannuation fund
any income received by the trustees on behalf on an approved gratuity fund
any income received- a by the Board of Trustees constituted under the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 3 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 4 19 of 1952 , on behalf of the Deposit- linked Insurance Fund established under section 6C of that Act
a by the Board of Trustees constituted under the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 3 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 4 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, 7948 34 of 1948
26 in the case of a member of a Scheduled Tribe as defined in clause 25 of article 366 7 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 as it stood immediately before the commencement of the North- Eastern Areas Reorganisation Act, 1971 18 of 1971 , 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
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 1. Inserted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 2. Inserted by the Labour Provident Fund Laws Amendment Act, 1976, w. e. f. 1- 8- 1976. 4. Ibid. 5. Inserted by the Finance Act, 1995, w. r. e. f. 1- 4- 1962. 6. Substituted by the North- Eastern Areas Reorganisation Adaptation of Laws on Union Subjects Order, 1974, w. r. e. f. 21- 1- 1972. Earlier, it was amended by the State of Nagaland Adaptation of Laws on Union Subjects Order, 1965, w. r. e. f. 1- 12- 1963 and the Taxation Laws Amendment Act, 1970, w. r. e. f. 1- 4- 1962. 7. Article 366 25 of the Constitution defines Scheduled Tribes as under 25 Scheduled Tribes means such tribes or tribal communities or parts of or groups within such tribes or tribal communities as are deemed under article 342 to be Scheduled Tribes for the purposes of this Constitution 8. Substituted for States of Nagaland, Manipur and Tripura or in the Union territories of Arunachal Pradesh and Mizoram by the Finance Act, 1994, w. e. f. 1- 4- 1995. 9. Substituted for, States or Union territories by the Finance Act, 1994, w. e. f. 1- 4- 1995. 10. Inserted by the Finance No. 2 Act, 1965, w. r. e. f. 1- 4- 1962. 12. The words not being an individual who is in the service of Government omitted by the Finance No. 2 Act, 1971, w. r. e. f. 1- 4- 1962. 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
references in those sub- sections to India shall be construed as references to the said district and
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 any income of a person by way of winnings from any lottery, the draw of which is held in pursuance of any agreement entered into on or before the 28th day of February, 1989 , between the State Government of Sikkim and the organising agents of such lottery, where such person is resident in the State of Sikkim in any previous year. Explanation.- For the purposes of this clause, a person shall be deemed to be resident in the State of Sikkim if he fulfils the requirements of clause 1 or clause 2 or clause 3 or clause 4 of section 6, as the case may be, subject to the modifications that- i references in those clauses to India shall be construed as references to the State of Sikkim and ii in sub- clause i of clause 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 Sikkim and having its registered office in that State in that year
references in those clauses to India shall be construed as references to the State of Sikkim and
in sub- clause i of clause 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 Sikkim and having its registered office in that State in that year
26B any income of a corporation established by a Central, State or Provincial Act, or of any other body, institution or association being a 1. Substituted for 1986 by the Finance Act, 1985, w. e. f. 1- 4- 1985. Earlier, 1986 was substituted for 1983 by the Finance Act, 1983, w. e. f. 1- 4- 1983 1983 for 1980 by the Finance Act, 1980, w. e. f. 4- 4- 1980 1980 for 1975 by the Finance No. 2 Act, 1977, w. r. e. f. 1- 4- 1975 and 1975 for 1970 by the Finance No. 2 Act, 1971, w. r. e. 1- 4- 1970. 2. Inserted by the Finance Act, 1983, w. r. e. f. 1- 4- 1980. 3. ibid. 4. Inserted by the Finance Act, 1989, w. e. f. 1- 4- 1990. 5. Inserted by the Finance Act, 1980, w. r. e. f. 1- 4- 1972. 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 3 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
Scheduled Castes and Scheduled Tribes shall have the meanings respectively assigned to them in clauses 24 and 25 of article 366 of the Constitution 3
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
by the Central Government or
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,
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 any amount adjusted or paid in respect of a tax credit certificate under the provisions of Chapter XXIIB and any scheme made thereunder
29 in the case of an authority constituted tinder any law for the time being in force for the marketing of commodities, any income derived from the letting of go downs or warehouses for storage, processing or facilitating the marketing of commodities 1. Substituted for either the Scheduled Castes or the Scheduled Tribes or of both by the Finance Act, 1994, w. r. e. f. 1- 4- 1993. 2. Substituted by the Finance Act, 1994 w. r. e. f. 1- 4- 1993. Prior to the substitution, the Explanation, as originally enacted, read as under Explanation. For the purposes of this clause, Scheduled Castes and Scheduled Tribes shall have the meanings respectively assigned to them in clauses 24 and 25 of Article 366 of the Constitution. 4. Inserted by the Finance Act, 1995, w. e. f. 1- 4- 1995. 5. Inserted by the Finance Act, 1992, w. r. e. f. 1- 4- 1989. Earlier, clause 27 was inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964 amended by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967 and omitted by the Finance Act, 1975, w. e. f. 1- 4- 1976. 6. Substituted by the Finance No. 2 Act, 1965, w. e. f. 11- 9- 1965. It was inserted by the Finance Act, 1965, w. e. f. 1- 4- 1965. Chapter YXII- B has been omitted by the Finance Act, 1990, w. e. f. 1- 4- 1990. This clause too needs to be omitted. 7. Inserted by the Finance No. 2 Act, 1967, w. e. f 1- 4- 1968. 30 2 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 3 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. 1. Inserted by the Taxation Laws Amendment Act, 1970, w. r. e. f. 1- 4- 1969. 4. Inserted by the Finance Act, 1984, w. e. f. 1- 4- 1985. 5. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 6. Ibid. 7. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989.
in relation to rubber, the Rubber Board constituted under section 4 of the Rubber Act, 1947 24 of 1947 ,
in relation to coffee, the Coffee Board constituted under section 4 of the Coffee Act, 1942 7 of 1942 ,
in relation to cardamom, the Spices Board constituted under section 3 of the Spices Board Act, 1986 10 of 1986 ,
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. 1. Inserted by the Taxation Laws Amendment Act, 1970, w. r. e. f. 1- 4- 1969. 4. Inserted by the Finance Act, 1984, w. e. f. 1- 4- 1985. 5. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 6. Ibid. 7. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989.
32 in the case of an assessee referred to in sub- section 1A of section 64, any income includable 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 includable.