Income Tax Act, 1961
Section 16: Ins. by Act 27 of 1999, s. 6 (w.e.f. 12000)
16. Ins. by Act 27 of 1999, s. 6 (w.e.f. 12000)
81
1[(v) interest on—
(a) securities held by the Welfare Commissioner, Bhopal Gas Victims, Bhopal, in the
Reserve Bank's SGL Account No. SL/DH 048;
(b) deposits for the benefit of the victims of the Bhopal gas leak disaster held in such
account, with the Reserve Bank of India or with a public sector bank, as the Central Government
may, by notification in the Official Gazette, specify, whether prospectively or retrospectively but
in no case earlier than the 1st day of April, 1994 in this behalf.
Explanation.—For the purposes of this sub-clause, the expression “public sector bank” shall have
the meaning assigned to it in the Explanation to clause (23D);]
2[(vi) interest on Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 3[or deposit
certificates issued under the Gold Monetisation Scheme, 2015] notified by the Central Government;
4[(vii) interest on bonds—
(a) issued by a local authority or by a State Pooled Finance Entity; and
(b) specified by the Central Government by notification in the Official Gazette.
Explanation.—For the purposes of this sub-clause, the expression “State Pooled Finance Entity”
shall mean such entity which is set up in accordance with the guidelines for the Pooled Finance
Development Scheme notified by the Central Government in the Ministry of Urban Development;]
5[(viii) any income by way of interest received by a non-resident or a person who is not ordinarily
resident, in India on a deposit made on or after the 1st day of April, 2005, in an Offshore Banking
Unit referred to in clause (u) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);]
6[(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 7[ 8[, not being an
agreement entered into between the 1st day of April, 1997 and the 31st day of March, 1999,] and]
approved by the Central Government in this behalf:
9[Provided that nothing contained in this clause shall apply to any such agreement entered into on
or after the 10[1st day of April, [2007].]
Explanation.—For the purposes of this clause, the expression “foreign enterprise” means a person
who is a non-resident;]
(16) scholarships granted to meet the cost of education;
11[(17) any income by way of—
(i) daily allowance received by any person by reason of his membership of Parliament or of
any State Legislature or of any Committee thereof; 12***
13[(ii) any allowance received by any person by reason of his membership of Parliament
under the Members of Parliament (Constituency Allowance) Rules, 1986;
14[(iii) any constituency allowance received by any person by reason of his membership of any
State Legislature under any Act or rules made by that State Legislature;]]]
interest on—
securities held by the Welfare Commissioner, Bhopal Gas Victims, Bhopal, in the
Reserve Bank's SGL Account No. SL/DH 048;
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
interest on Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 3[or deposit
certificates issued under the Gold Monetisation Scheme, 2015] notified by the Central Government;
4[
interest on bonds—
issued by a local authority or by a State Pooled Finance Entity; and
specified by the Central Government by notification in the Official Gazette.
Explanation.—For the purposes of this sub-clause, the expression “State Pooled Finance Entity”
shall mean such entity which is set up in accordance with the guidelines for the Pooled Finance
Development Scheme notified by the Central Government in the Ministry of Urban Development;]
5[
any income by way of interest received by a non-resident or a person who is not ordinarily
resident, in India on a deposit made on or after the 1st day of April, 2005, in an Offshore Banking
Unit referred to in clause
of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);]
6[
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 7[ 8[, not being an
agreement entered into between the 1st day of April, 1997 and the 31st day of March, 1999,] and]
approved by the Central Government in this behalf:
9[Provided that nothing contained in this clause shall apply to any such agreement entered into on
or after the 10[1st day of April, [2007].]
Explanation.—For the purposes of this clause, the expression “foreign enterprise” means a person
who is a non-resident;]
scholarships granted to meet the cost of education;
11[
any income by way of—
daily allowance received by any person by reason of his membership of Parliament or of
any State Legislature or of any Committee thereof; 12***
13[
any allowance received by any person by reason of his membership of Parliament
under the Members of Parliament (Constituency Allowance) Rules, 1986;
14[
any constituency allowance received by any person by reason of his membership of any
State Legislature under any Act or rules made by that State Legislature;]]]