Income Tax Act, 2025
Section 2: Ins. by Act 18 of 2005, s. 29 (w.e.f. 12006).
2. Ins. by Act 18 of 2005, s. 29 (w.e.f. 12006).
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88A. [Rebate in respect of investment in certain new shares or units].—Omitted by the
Finance (No. 2) Act (33 of 1996), s. 35 (w.e.f. 11994).
88B. [Rebate of income-tax in case of individuals of sixty-five years or above].—Omitted by the
Finance Act, 2005 (18 of 2005), s. 30 (w.e.f. 12006).
88C. [Rebate of income-tax in case of women below sixty-five years].—Omitted by s. 31, ibid.,
(w.e.f. 12006).
88D. [Rebate of income-tax in case of certain individuals].—Omitted by s.32, ibid., (w.e.f. 1
2006).
1[88E. Rebate in respect of securities transaction tax.—(1) Where the total income of an assessee
in a previous year includes any income, chargeable under the head “Profits and gains of business or
profession”, arising from taxable securities transactions, he shall be entitled to a deduction, from the
amount of income-tax on such income arising from such transactions, computed in the manner provided
in sub-section (2), of an amount equal to the securities transaction tax paid by him in respect of the
taxable securities transactions entered into in the course of his business during that previous year:
Provided that no deduction under this sub-section shall be allowed unless the assessee furnishes along
with the return of income, evidence of payment of securities transaction tax in the prescribed form:
Provided further that the amount of deduction under this sub-section shall not exceed the amount of
income-tax on such income computed in the manner provided in sub-section (2).
(2) For the purposes of sub-section (1), the amount of income-tax on the income arising from the
taxable securities transactions, referred to in that sub-section, shall be equal to the amount calculated by
applying the average rate of income-tax on such income.
2[(3) No deduction under this section shall be allowed in, or after, the assessment year beginning on
the 1st day of April, 2009.]
Explanation.—For the purposes of this section, the expressions, “taxable securities transaction” and
“securities transaction tax” shall have the same meanings respectively assigned to them under Chapter
VII of the Finance (No. 2) Act, 2004.]
B.—Relief for income-tax]
3[89. Relief when salary, etc., is paid in arrears or in advance.—Where an assessee is in receipt of
a sum in the nature of salary, being paid in arrears or in advance or is in receipt, in any one financial year,
of salary for more than twelve months or a payment which under the provisions of clause (3) of section
17 is a profit in lieu of salary, or is in receipt of a sum in the nature of family pension as defined in
the Explanation to clause (iia) of section 57, being paid in arrears, due to which his total income is
assessed at a rate higher than that at which it would otherwise have been assessed, the Assessing Officer
shall, on an application made to him in this behalf, grant such relief as may be prescribed:]
4[Provided that no such relief shall be granted in respect of any amount received or receivable by an
assessee on his voluntary retirement or termination of his service, in accordance with any scheme or
schemes of voluntary retirement or in the case of a public sector company referred to in sub-clause (i) of
clause (10C) of section 10, a scheme of voluntary separation, if an exemption in respect of any amount
received or receivable on such voluntary retirement or termination of his service or voluntary separation
has been claimed by the assessee under clause (10C) of section 10 in respect of such, or any other,
assessment year.]
Where the total income of an assessee
in a previous year includes any income, chargeable under the head “Profits and gains of business or
profession”, arising from taxable securities transactions, he shall be entitled to a deduction, from the
amount of income-tax on such income arising from such transactions, computed in the manner provided
in sub-section
For the purposes of sub-section
No deduction under this section shall be allowed in, or after, the assessment year beginning on
the 1st day of April, 2009.]
Explanation.—For the purposes of this section, the expressions, “taxable securities transaction” and
“securities transaction tax” shall have the same meanings respectively assigned to them under Chapter
VII of the Finance (No. 2) Act, 2004.]
B.—Relief for income-tax]
3[89. Relief when salary, etc., is paid in arrears or in advance.—Where an assessee is in receipt of
a sum in the nature of salary, being paid in arrears or in advance or is in receipt, in any one financial year,
of salary for more than twelve months or a payment which under the provisions of clause
of section
17 is a profit in lieu of salary, or is in receipt of a sum in the nature of family pension as defined in
the Explanation to clause
of section 57, being paid in arrears, due to which his total income is
assessed at a rate higher than that at which it would otherwise have been assessed, the Assessing Officer
shall, on an application made to him in this behalf, grant such relief as may be prescribed:]
4[Provided that no such relief shall be granted in respect of any amount received or receivable by an
assessee on his voluntary retirement or termination of his service, in accordance with any scheme or
schemes of voluntary retirement or in the case of a public sector company referred to in sub-clause
of
clause
of section 10, a scheme of voluntary separation, if an exemption in respect of any amount
received or receivable on such voluntary retirement or termination of his service or voluntary separation
has been claimed by the assessee under clause
of section 10 in respect of such, or any other,
assessment year.]