INCOMES EXEMPT FROM TAX

Section Eligible
Assessee
Nature of income Amount
exempt
Conditions laid
down for such
exemption
10(1) Any
assessee
Agricultural income Entire
amount of
such
income
1. Agricultural
income is defined
in section 2(1A)
which means any
rent or revenue
derived from land
situated in India
and used for
agricultural
purpose and
subject to other
conditions
2. It includes
income from such
land by agriculture
or from
performance /
sales by cultivator
or receiver of rent
in kind to render
produce raised or
received to make it
fit to take it to
market
3. income derived
from saplings or
seedlings grown in
nursery
4. income derived
from any building
owned or occupied
by cultivator or
receiver of rent
used for purpose
referred in clause
2.
However income
derived from
processing of
agricultural
produce would not
be considered as
agricultural
income.
Income under this
clause would be
included in total
income for limited
purpose of
determining rate of
tax.
10(2) Any
individual as
a member of
HUF
Any sum received as
a member of HUF
Entire
amount so
received
1. sum is received
out of income of
HUF
2. In case of
impartible estate,
such sum is paid
out of income of
the estate
belonging to
family.
3. sum so received
is subjected to
provisions of
section 64(2)
10(2A) Partner of
the firm
Share of profit in
total income of the
firm
Entire
amount
1. The firm is
separately
assessed to tax as
such
2. The amount
exempt would be
such which bears
the same ratio of
total income of the
firm, as the
amount of his
share in the profit
of the firm as per
partnership deed
10(4)(i) Non resident
assessee
Interest or premium
on securities or
bonds specified by
central govt. before
Entire
amount
1. special securities
are notified as per
notification No.
SO.3331 dt.
1st June, 2002 19.10.1965
10(4)(ii) An individual
being non-
resident as
defined
under
section 2(q)
of FERA,
1973
Interest earned on
money standing in
credit of his NRE
account
Entire
amount
1. The person is
either non-resident
or is allowed to
maintain NRE
account by RBI
2. money in the
said account is
deposited in
accordance with
FERA, 1973
10(4B) A non-
resident
individual
who is either
citizen of
India or
person of
Indian
Origin
Interest on specified
savings certificates
Entire
amount
1. The individual
has subscribed to
such certificates in
convertible foreign
exchange remitted
from out of India.
10(5) An Individual Leave travel
concession or
assistance received
from employer or
former employer
Amount
received or
actually
spent on
travel to
any place in
India as
specified in
Rule 2B
which-ever
is lower
1. The concession
is allowed for the
travel of self,
spouse and
children including
wholly or mainly
dependent parent,
brothers and
sisters.
2. The amount
received after the
retirement or
termination of
employment is also
allowed subject to
other conditions
3. The limit of
amount allowed as
deduction (refer
Rule 2B)
4. The exemption
under this section
is allowed for two
journeys made in
the block of four
years (Block starts
from 1986)
10(6)(ii) An Individual
not being
citizen of
India
Remuneration
received as an
official or as member
of staff of the
officials of an
embassy, high
commission,
consulate or trade
representative of
foreign state
Entire
amount
1 Where the
remuneration is
received as Trade
Commissioner or
other official in
India This
exemption would
be available only if
a remuneration of
corresponding
officials of the
government
resident for similar
purpose is exempt
in the other
country.
2 The
remuneration
received shall not
be allowed if the
member of staff is
engaged in any
business or
profession or
employment in
India otherwise as
a member of such
staff
10(6)(vi) An individual
not being a
citizen of
India
Remuneration
received as an
employee of foreign
enterprises, for
services rendered
during his stay in
India
Entire
amount
1. The foreign
enterprises is not
engaged in trade
or business in India
2. His stay in India
does not exceed
ninety days in such
previous year
3. Such
remuneration is
not deducted from
the income of such
enterprises.
10(6)(viii) An individual
being non-
resident and
not a citizen
of India
salaries for services
rendered on a
foreign ship
Entire
amount
The total stay of
such person should
not in aggregate
exceed ninety days
in such previous
year
10(6)(xi) An individual
not being a
citizen of
India
Remuneration
received as an
employee of foreign
state during his stay
in India
Entire
amount
1. The
remuneration is
received in
connection with his
training in any
establishment or
office owned or
controlled or
financed by
government of
India or any state
government as
specified
10(6A) Any foreign
company
Tax paid on income
earned by way of
Royalty or fees for
technical services
Entire
amount of
such tax
1. The income is
received from
Government or
Indian concern
pursuant to any
agreement.
2. The agreement
should be in
accordance with
industrial policy if
it relates to matter
referred in such
policy or else it
should be
approved by
central govt.
3. The agreement
should be entered
into between
31.3.1976 to 1-6-
2002
10(6B) Non-resident
(not a
company) or
a foreign
company
Tax paid on income
other than salary,
Royalty or fees for
technical services by
government or
Indian concern
Entire
amount of
such tax
paid by
govt. or
Indian
concern
1. The income is
received from
Government or
Indian concern
pursuant to any
agreement entered
into before 1-6-
2002 between
Central
Government. and
foreign state or an
international
organization
2. The tax is
payable by govt. or
Indian concern
according to such
agreement
10(6BB) Government
of foreign
state or
foreign
enterprise
Tax paid on income
derived from leasing
of aircraft or aircraft
engine as per
agreement approved
by central govt.
Entire tax
paid by the
Govt. or
Indian
company
1. The income is
derived from
leasing of aircraft
or engine as per
approved
agreement and not
from provisions of
spares, facilities or
services in
connection with
operation of the
same.
2. The agreement
must be entered
into after
31.3.1997 and
before 1-4-1999 or
after 31.3.2007
3. The expression
foreign enterprise
mean a person
who is non-
resident
10(6C) Foreign
company as
notified by
central
government
Royalty or fees for
technical services for
projects connected
with security of India
Entire
amount
1. The amount
should be received
pursuant to
agreement with
government of that
state in relation to
providing services
in India or outside
India
2. such services
should be for
projects connected
with security of
India.
10(7) A citizen of
India
Amount paid or
allowed by the govt.
outside India
Entire
amount
1. The amount is
paid by way of
allowances or
perquisites
outside India for
services provided
outside India.
2. Such amount is
paid / allowed by
Govt. of India
10(8) An Individual Remuneration for
duties assigned in
India and any other
income accrues or
arises outside India
Entire
amount
1. The duties are
assigned in
connection with co-
operative technical
assistance
programmes or
projects as per
agreement
between central
Govt. and foreign
state.
2. The
remuneration is
paid by foreign
state
3. The terms of
such agreement
provide for
exemption under
this clause.
4. Any other
income which
accrues or arises
outside India is
subjected to any
income or social
security tax in
other state.
10(8A) An individual
who is either
not a citizen
of India or is
not
ordinarily
resident in
India.
or
Any other
person who
is not a
resident of
India
Any remuneration or
fees received under
a technical grant
assistance
agreement, from,
funds made
available to
international agency
Any other income
which does not
accrue or arise in
India
Entire
amount



1. The fees or
remuneration is
paid for technical
services
rendered in India
under the technical
assistance
programme or
project.
2. The sum is paid
directly or
indirectly out of
funds made
available to
international
organization as per
agreement
between such
organization &
government of
foreign state.
3. The technical
assistance
provided is in
accordance with
such agreement.
4. Any agreement
for appointment of
consultant shall
have to be
approved by the
authorities
prescribed.
5. Any other
income which
accrues or arises
outside India is
subjected to any
income or social
security tax in
other state.
10(8B) An individual
who is either
not a citizen
of India or is
not
ordinarily
resident in
India.
The remuneration
received for services
rendered in India
from consultant
referred to in sec
10(8A) Any other
income which does
not accrue or arise
in India
Entire
amount
1. The individual
should be an
employee of
consultant referred
to in clause 8A
above.
2. His contract of
service is approved
by the prescribed
authority.
3. The
remuneration is
received in
connection with
technical
assistance
programme
referred to in
clause 8A.
4. Any other
income which
accrues or arises
outside India is
subjected to any
income or social
security tax in
other state.
The prescribed
authority for
clauses 8A & 8B
are
The Additional
Secretary,
Department of
Economic Affairs in
Ministry of Finance,
Government of
India, in
concurrence with
members CBDT
10 (9) An Individual
who is a
member of
the family of
person
referred to in
sections
10(8),
10(8A)
Any income accrues
or arises outside
India
Entire
amount
Any such income
which accrues or
arises outside India
is subjected to any
income or social
security tax in
other state.
& 10(8B).
10 (10) An Individual Death cum
Retirement Gratuity
As per
conditions
For conditions refer
Salary section.
10 (10A) An Individual Commuted Pension As per
conditions
For conditions refer
Salary section
10 (10AA) An Individual Leave Encashment As per
conditions
For conditions refer
Salary section
10 (10B) An Individual Compensation/award
received at the time
of his retrenchment
An amount
as per
section
25F(b) of
the
Industrial
Dispute Act,
1947 or Rs
5,00,000
whichever
is lower. In
special case
any amount
received as
per any
scheme
approved
by the
Government
The compensation
received on
retrenchment
would include
1. Amount received
at the time of the
closing down of the
undertaking.
2. Amount received
at the time of
transfer ownership
of an undertaking
subjective to
condition (refer
salary section).
3. In special cases
looking to the need
for special
protection to the
workmen the
Government may
approve the
scheme for
compensation to
be paid to
workmen which will
be exempt from
tax paid as per
such scheme
10 (10BB) Any person Any payment
received under
Bhopal Gas Leak
Disaster (Processing
of Claims Act), 1985
Entire
amount
In case if the
assessee is allowed
deductions under
the IT Act for any
payment in
connection with
any loss or damage
caused by such
disaster, the same
shall not be
allowed under this
clause.
10(10(BC) Any
Individual or
his legal
heirs
Any compensation
received from State
or Central
Government on
account of any
disaster
Entire
amount
1. In case if the
assessee is allowed
deductions under
the IT Act for any
payment in
connection with
any loss or damage
caused by such
disaster, the same
shall not be
allowed under this
clause.
2. The expression
"disaster" shall
have a meaning as
defined under
section 2(d) of
Disaster
Management Act,
2005.
10 (10C) Individual
employee
Amount received on
voluntary retirement
Amount
received as
per scheme
not
exceeding
Rs.
5,00,000/-
1. The scheme of
voluntary
retirement should
be framed in
accordance with
Guidelines
prescribed (Rule
2BA)
2. Once the
exemption is
allowed under this
clause in any
assessment year,
the same shall not
be allowed in any
other assessment
year
3. From A.Y. 2010-
11 if the assessee
has been allowed
relief u/s 89 for
such payment in
any assessment
year, the
exemption shall
not be allowed
under this clause.
10(10CC) Individual
employee
Tax on income
derived as perquisite
Entire
amount of
such tax
1. The perquisite
shall not be
provided as
monetary payment
as referred in
section 17(2)
2. Tax payment
can be made by
the employer
irrespective of any
restriction specified
u/s 200 of
Companies Act.
10(10D) An Individual Amount received
under life insurance
policy including any
bonus allotted on
such policy
Entire
amount
1. The following
amount shall not
be allowed as
exemption under
this clause
Amount received
u/s 80DD(3) or
80DDA(3)
Amount received
under keyman
insurance policy
From 1.4.2003
amount received
under the policy
where
premium in any
year of term of
policy exceeds
twenty
per cent of capital
sum insured (not
to apply in case
amount is received
on death of a
person)
2. Capital sum
insured shall be
considered giving
effect to
explanation to
section 80C(3) or
88(2A)
10(11) An Individual Amount received
from provident funds
Entire
amount
1. The payment is
received from the
funds
Either to which
Provident Fund Act,
1925 applies or
Any notified
provident funds set
up by Central
Government.
(Notification No.
SO-2430 dt.
2.7.1968)
10(12) An Individual
employee
participating
in
recognized
provident
fund
Accumulated balance
due and payable
under recognized
provident fund
Amount as
provided in
Rule 8 of
part A of
fourth
Schedule
1. The employee
has rendered
services for
continuous period
of five years,
except in cases
where his services
are terminated due
to ill health,
discontinuation of
employers
business or other
cause beyond his
control
2. Where he takes
other employment,
the amount should
be transferred to
recognized P F
account maintained
by other employer
(in such cases
period of his earlier
employment would
be counted for
continuous period
of five years)
3. The part A of
fourth schedule
does not apply to
Provident Funds
Act, 1925
10((13) An Individual Any payment
received from
Superannuation
Fund
Entire
amount
The payment of
superannuation
fund is made
On death of
beneficiary
In lieu of or
commutation of
annuity on
retirement at or
after specified age
Or he being
incapacitated
before such
retirement
As refund of
contribution on
death of
beneficiary.
As a refund of
contribution on
leaving service, to
the extent
payment does not
exceed contribution
and interest
thereon prior to
commencement of
I T Act,1961
10(13A) An Individual
employee
House Rent
allowance
As per rule
2A
For details Refer
salary section
10(14) An individual Special allowance
granted to meet
expenses incurred in
performance of
duties
As per Rule
2BB
For details Refer
salary section
10(15)(i) All assessees Interest, premium
on redemption,
securities, bonds,
certificates, as
notified by govt.
Entire
amount
Notifications issued
under this clauses
are
SO 607(E), dt.9-
6-1989
SO 653(E) dated
31-8-1992
SO 844(E) dated
21-9-1998
SO 742(E) dated
27-6-2003
SO 1114(E) 10-
8-2005
281/2004/ F No.
178/20/2004
Dt.18-11-2004
10
(15)(iib)
Individual or
HUF
Interest on Notified
capital bond
Entire
amount
No Bond shall be
notified after 1-6-
2002 Notification
issued under this
clause
SO 413(E) Dt.
11-6-1982
10(15)(iic) Individual or
HUF
Interest on notified
relief Bonds
Entire
amount
Notification issued
under this clause
F 4(9)
W&M/2003 dt. 13-
3-2003
F 4(9)
W&M/2003 dt. 9-7-
2004
F 4(5)
W&M/2002(i) dt.
28-2-2003
F 4(13)
W&M/2002 dt. 28-
2-2003
10(15)(iid) Individual
non-resident
Indian
Interest on notified
Bonds
Entire
amount
1. Person receiving
such bonds as
nominee, or
survivor or gift
from such NRI is
also entitled to
benefit under this
clause.
2. The NRI should
invest in the bond
in Foreign
exchange and on
maturity the
amount shall not
be entitled to be
repatriated
3. Benefit would
not be withdrawn if
the NRI becomes
resident of India.
4. where the bond
is encashed before
maturity
exemption would
not be allowed for
said previous year
Govt. shall not
notify any such
bonds after 1-6-
2002.
10(15)(vi) All assessees Interest on notified
gold deposit bond
Entire
amount
Gold deposit bonds
issued under Gold
Deposit Scheme,
1999
10(15)(vii) All assessees Interest on Bonds Entire
amount
Bonds issued by
local authority or
state pooled
finance entity as
specified by the
Central
Government.
10(15)(viii) Person who
is non-
resident or
not ordinary
resident
Interest on offshore
Banking units
Entire
amount
1. Deposits made
on after 1-4-2005
shall be eligible for
exemption.
2. Deposit is made
in offshore banking
unit as defined in
section 2(u) of SEZ
Act, 2005
10(15A) Government
of a foreign
state or
foreign
enterprise
Income derived from
leasing of aircraft or
aircraft engine
Entire
amount
1. Income is
received from
Indian company
engaged in
operation of
aircraft
2. Payment made
for spares, facilities
or services in
connection of
leasing is not
allowed as
exemption under
this clause
3. This clause shall
not apply to any
agreement of such
lease entered into
between 1-4-1997
and 31-3-1999 or
after 1-4-2007.
10(16) An individual Scholarship Entire
amount
Scholarship is
granted to meet
cost of education
The term
scholarship may
include certain
allowances granted
to the persons for
the purpose of
specified research
10(17) A member of
Parliament
or State
Legislature
or any
committee
formed
thereof
Daily allowances or
constituency
allowance
Entire
amount
Following
allowances are
exempt under this
clause
Daily allowance
to Member of
Parliament,
member of State
legislature or any
committee thereof.
Amount received
by member of
Parliament under
Constituency
Allowance
Rules,1986
Constituency
allowance received
by member of
State
Legislature under
any Rules made by
the State
Legislature
10(17A) Any
assessee
Award or Reward
received in cash or
in kind
Entire
amount
Award received
should be given in
public interest by
Central
or State
Government or any
other body and
approved by
Central
Government
Reward for such
purpose as
approved by the
Central
Government in
public interest
given by central
and State
Governments
10(18) Any eligible
Central or
State
Government
employee
Pension or family
pension received by
the family member
as the case may be
Entire
amount
The eligible
employee has been
awarded Param Vir
Chakra, or Maha
Vir Chakra, or Vir
Chakra or any
other notified
gallantry awards
by Central
Government
10(19) Widow,
children or
nominated
heir of
member of
army
Family pension
received
Entire
amount
The member of
armed force or
paramilitary force
should have died in
the course of
operational duty
under prescribed
conditions and
circumstances
10(19A) Any Ruler
(individual)
Annual value of any
palace/s in
occupation of such
ruler
Entire
amount
1. The annual
value of such
palace/s was
exempt from
income tax before
the
commencement of
constitution
(Twenty Sixth
Amendment) Act,
1971 on account of
provisions of
merged states
(Taxation
Concessions)
Order, 1949 or Part
B States (Taxation
Concessions)
Order, 1950 or
Jammu and
Kashmir (Taxation
Concessions)
Order, 1958.
10(20) Income of
panchayat,
municipality,
municipal
committee,
district
Board or
cantonment
board
Income from house
property, capital
gains, from trade or
business and income
from other sources
Entire
amount
1. income from
trade or business
should accrue
From supply of
commodity or
services other than
water and
electricity in its
area. or
From supply of
water or electricity
within or outside
its jurisdictional
area
10(21) Any
Research
Association
Any income Entire
amount
1. The research
Association should
be approved for
the purpose of
section 35(1)
clause (ii) and
clause (iii)
2. It applies or
accumulates the
income wholly and
exclusively for its
stated purpose
3. Provisions of
sections 11(2) and
11(3) shall apply
with such
modification as
specified
4. If the Central
Government is
satisfied that
various conditions
laid down is not
satisfied it may
withdraw the
exemption after
giving opportunity
of being heard to
such association.
10(22B) Any notified
news agency
Any income Entire
income
1. The news
agency is set up
solely for collection
and distribution of
news and applies
its income or
accumulation for
collection or
distribution of
news as such.
2. It does not
distribute its
income to its
members in any
manner
3. The government
notification at any
one time shall have
effect, not
exceeding three
years, as may be
specified
4. The government
may after giving
opportunity to
agency, rescind
such notification if
it finds that the
agency does not
adhere to the
specified
conditions.
10(23A) An
association
or institution
set up in
India for
specified
professions
Any income other
Income from
house property
Interest or
dividend from
investment
Income from
rendering specified
services
Entire
income
1. The association
should be
approved by the
central than
government
2. The notified
institution should
apply or
accumulated
income for the
purpose for which
it is established
3. The government
may after giving
opportunity to such
institution,
withdraw the
approval if it finds
that such
institution does not
adhere to the
specified
conditions.
10(23AA) Any person Any income Entire
amount
Income is received
on behalf of
Regimental fund or
non Public fund,
established by
armed force for
welfare of its
member or his
dependent.
10(23AAA) Any person Any income Entire
amount
1. Income is
received on behalf
of fund established
for notified purpose
by Board for
welfare of
employees or their
dependents.
2. The fund applies
or accumulates its
income exclusively
for the purpose for
which it is
established.
3. The fund shall
invest its income,
contribution or
other sum as
specified u/s 11(5)
of the Act.
4. The fund is
approved as per
rule 16C by
commissioner who
may approve such
fund for any period
not exceeding
three years.
10(23AAB) Any fund set
up by LIC or
other insurer
Any income Entire
amount
1. The fund is set
up after 1-8-1996
by LIC or other
insurer for pension
scheme to which
contribution is
made by any
person to receive
pension from such
fund
2. The fund is
approved by
Controller of
insurance or other
authority
established under
Insurance
Regulatory and
Development
Authority Act,
1999.
10(23B) An
institution
constituted
as Society or
public
charitable
trust
Any income Entire
amount
1. The institution is
established for
Khadi and Village
industries
2. The same is
approved by
Commissioner of
Khadi and Village
Industries
Commission, who
may grant approval
for any period not
exceeding three
years
3. The institution
shall apply or
accumulate its
income solely for
development of
Khadi and Village
industries.
4. The
Commissioner may
after giving
opportunity to such
institution,
withdraw the
approval if he finds
that such
institution does not
adhere to the
specified
conditions.
10(23BB) Authority
established
under state
or provincial
Act for
development
of Khadi and
village
industries
Any income Entire
amount
Khadi and Village
Industries shall
have meaning
assigned in Khadi
and Village
Industries
Commission Act,
1956
10(23BBA) Authority or
body
established
or appointed
under
Central,
Any income Entire
amount
The authority is
established to
provide
administration of
public religious or
charitable trusts,
State or
Provincial
Acts
endowments
(Temples, Maths,
Wakfs,Synagogues,
etc.), societies for
religious or
charitable purpose
formed under the
applicable laws.
The provisions of
this section are not
applicable to
income of trusts,
endowments or
societies referred
to above.
10(23BBB) European
Economic
community
Interest, dividend,
capital gains
Entire
income
The income is
earned out of
investments made
under notified
schemes by
Central
Government.
10(23BBC) SAARC Fund
for regional
projects
Any income Entire
amount
The fund is set up
by Colombo
Declaration issued
on 21-12-1991 for
regional projects
10(23BBE) Insurance
regulatory
and
Development
Authority
Any income Entire
amount
The authority is
established under
section 3(1) of
Insurance
Regulatory and
Development
Authority Act,
1999.
10(23BBG) Central
Electricity
Regulatory
Commission
Any income Entire
amount
The commission is
constituted under
section 76(1) of
the Electricity Act,
2003
10(23C) Income of
following
entities
P.Ms
National Relief
Fund.
P.Ms fund for
promotion of
folk art
P.Ms Aid to
student
fund
National
foundation
for communal
harmony
Hospital or
other institution
wholly financed
by Central
govt. for
treatment of
specified illness
and established
for
philanthropic
purpose only.
University or
educational
institution
set up for
education
purpose and not
for
profit and
whose gross
receipt does not
exceed
Rs.1 crore.
Hsopital or
other institution
set up for
philanthropic
purpose
for treatment of
specified illness
and whose gross
receipts does
not exceed Rs.1
crore.
Other
Any income Entire
income
1. The fund, trust
university, hospitals,
charitable organization
requiring approvals
shall make an
application in prescribed
form to prescribed
authority for the grant of
or continuation of
exemption.
2. Exemption shall not
be available for
anonymous donations
referred to in section
115BC.
3. The provisions
similar to section 11, 12
or 12AA shall also
apply to various
institutions referred to
herein.
4. the institutions where
their income exceeds
the maximum amount
chargeable to tax, shall
get their accounts
audited.
charitable trusts,
universities,
hospitals,
charitable
organization
approved by
specified
authority
10(23D) Specified
Mutual funds
Any income Entire
amount
1. The mutual fund
is either registered
under SEBI or is
set up by public
sector Bank, public
sector financial
institution or such
fund as approved
by RBI and shall be
subjected to such
conditions as
notified.
10(23EA) Investor
protection fund
set up by
recognized
stock exchange
Any income by way of
contribution received
from
recognized stock
exchange or its member
Entire amount 1. The fund is set up by
recognized stock
exchanges in India
either jointly or
separately as may be
notified by Central
Government
2. The amount which is
standing in credit and
not subjected to tax
under this provision is
shared with the
recognized stock
exchange the same shall
be chargeable to tax in
the year in which the
same is shared.
10(23EC) Investor
protection fund
set up by
commodity
exchange
Any income by way of
contribution received
from commodity
exchange or its member
Entire amount 1. The fund is set up by
commodity exchanges
in India either jointly or
separately as may be
notified by Central
Government
2. The amount which is
standing in credit and
not subjected to tax
under this provision is
shared with the
commodity exchange,
the same shall be
chargeable to tax in the
year in which the same
is shared.
10(23FB) Venture capital
fund or or
venture capital
company
Any income from
investment in venture
capital undertaking
Entire amount 1. venture capital
company means the one
which has been
granted certificate of
registration under SEBI
Act and Rules and
fulfils notified and
approved specified
conditions
2. venture capital fund
means such fund
operating under trust
deed or as venture
capital scheme made by
UTI and has been
granted certificate of
registration under SEBI
Act and Rules and
fulfils notified and
approved specified
conditions.
3. Venture capital
undertaking means
Domestic company
whose shares are not
listed in recognized
stock exchange and is
engaged in business of
specified activities
10(24) Registered
union or
Association of
such unions
Income from house
property or income from
other sources
Entire income 1 The union is
registered under Trade
Union Act,1926
2 It is formed with the
object of regulating
relations between
workmen and employers
or between workmen
and workmen
10(25) Provident fund,
Superannuation
fund, Gratuity
fund, Coal
Mines P.F.,
employees PF
Interest on securities and
capital gains on sale such
securities held by
provident fund to which
Provident fund Act, 1925
applies.
In any other case any
income
Entire amount Any income received by
trustees or board of
trustees of following
funds are fully exempt
Recognized Provident
fund
Approved
superannuation fund
Approved gratuity
fund
Coal Mines Provident
Fund and Miscellaneous
Provisions Act, 1948
Employees Provident
Fund and Miscellaneous
Provisions Act, 1952.
10(26) Employees state
insurance fund
Any income Entire income E S I C fund is set up
under Employees State
Insurance Act,1948.
10(27) Member of
schedule Tribes
residing in
specified areas
Any income from source
in that area Interest and
dividend on securities
Entire income The schedule tribe is
defined under article
366(25) of the
constitution
10(26AAA) An Sikkimese
individual
Any income accrues from
source in Sikkim Interest
or dividend on securities
Entire income The expression
Sikkimese have a
meaning as given in
explanation to this
section.
The income of
Sikkimese woman
marrying to non-
sikkimese persons after
1-4-2008 shall not be
entitled to exemption
under this clause
10(26AAB) Agricultural
Produce Market
Committee or
Board
Any income Entire income The APMC or board is
constituted under any
law for the purpose of
regulating marketing of
agricultural produce
10(26B) Government
corporation or
any association,
body, institution
wholly financed
by government
Any income Entire income The corporation is
established by a Central,
State or provincial Act
or any association,
body, institution wholly
financed by the
government and are
formed with the object
to promote interest of
schedule caste, schedule
Tribe or backward
classes.
10(26BB) Government
corporation
formed by State
or Central
Government
Any income Entire income Such corporation is
established to promote
the interest of the
notified minority
community
10(26BBB) corporation
formed by State
or Central or
Provincial Act
Any income Entire income Such corporation is
formed for the welfare
and upliftment of ex-
service men being
citizen of India and
served for armed force
of union or Indian state
before the
commencement of
Constitution of India.
The term ex-service
men is defined in
explanation to this
section
10(27) A co-operative
society
Any income Entire income 1. Such co-operative
societies are formed for
promoting interest of
schedule caste or
schedule tribes
2. Members of such
societies shall consist
only of other societies
formed for similar
purpose and
3. Funds of the society
is provided by the
government or such
other society.
10(29A) Various Boards
or authorities
established
under various
Acts
Any income Entire income Income of various
boards like Tea Board,
Coffee Board, Rubber
Board, Tobacco Board,
Spices Board, Coir
Board, Marine Products
Export Development
Authority, and
Agricultural and
Processed product
export authority formed
under various laws as
applicable to such
Boards
10(30) Any assessee
engaged in
growing and
manufacturing
tea in India
Subsidy received from
Tea Board.
Entire amount
so received
1. Subsidy is received
for replantation or
replacement of tea
bushes or for
rejuvenation or
consolidation of area
used for cultivation of
tea under scheme
notified by government.
2. The assessee shall
furnish certificate of
subsidy so received to
the income tax officer
along with return of
income.
10(31) Any assessee
carrying on
business of
growing and
manufacturing
rubber, coffee,
cardamom or
Subsidy received from
concerned Board
Entire amount
so received
1. Subsidy is received
for replantation or
replacement of
respective commodity
bushes or for
rejuvenation or
consolidation of area
other
commodities
notified by
Central Govt.
used for cultivation of
such commodity under
scheme notified by
government.
2. The assessee shall
furnish certificate of
subsidy so received to
the income tax officer
along with return of
income
10(32) An assessee
referred to in
section 64(1A)
Income included u/s
64(1A)
Income
included in
assessees
income u/s
64(1A) to the
extent it does
not exceed Rs.
1500/- for each
minor child.
Any income of minor
child other than
specially exempt are
included in the income
of the parent and any
such income included in
the hands of the parent
shall be excluded to the
extent of Rs. 1500/- for
each child.
10(33) Any assessee Income arising from
transfer of units held as
capital assets of Unit
Scheme, 1964.
Entire income The transfer of such unit
is made after 1-4-2002
10(34) Any assessee Dividend Entire amount Dividend exempt under
this provisions is as
referred to in section
115-O
10(35) Any assessee Income received in
respect of Units of
specified mutual fund,
specified undertaking,
specified company, other
than on transfer of such
units
Entire income Income on transfer of
such units are not
exempt under this
provision
10(36) Any assessee Long term capital gains
on transfer of eligible
equity shares
Entire amount 1. The transfer took
place after 1.3.2003 but
before 1.3.2004.
2. Transactions are
entered into on a
recognized stock
exchange
3. eligible equity shares
mean
share of company
being part of BSE-500
as on 1.3.2003
or
shares of company
allotted in public issue
on or after 31.3.2003
and the company is
listed on recognized
stock exchange before
1.3.2004
10(37) Individual or
HUF
Capital gains arising out
of sale of agricultural land
Entire gain 1. The land is situated in
area as referred to in
section 2(14)(iiia) or
2(14)(iiib)
2. Such land was used in
previous two years from
the date of transfer for
agricultural purpose by
the assessee or his
parents
3. Transfer is by way of
compulsory acquisition
or consideration or
enhanced consideration
of which is approved by
RBI or Central Govt.
4. Such income arises
on or after 1.4.2004
10(38) Any assessee Long term capital gains
on sale of equity shares or
units of equity oriented
fund
Entire amount 1. The gains arises from
transfer takes place after
chapter VII of Finance
Act (No. 2) Act, 2004
came into existence
2. such transactions are
chargeable to STT
3. The income will be
included while
computing Book profit
for the purpose of
section 115JB.
4. Equity oriented fund
means fund
whose 65% of
investible fund is
invested by way of
equity shares in
domestic company
fund is set up under
scheme of mutual fund
specified u/s 10(23D)
10(39) Notified persons Specified income out of
international sporting
events
Income to the
extent notified
by central
government
1. Income out of
international sporting
event is exempt in the
hands of notified
persons if such events
are
approved by
international regulating
body of such event
events are participated
by more than two
countries
event is notified by
Central Government
10(40) Any Subsidiary
company
Income received from
Indian holding company
Entire amount The income is received
by way of grant or other
income from Indian
holding company for the
revival or reconstruction
of existing power
generating business.
10(42) Notified body
or authority
Specified income Entire amount 1. Body or Authority is
constituted under a
treaty or agreement
signed by Central
Government with two or
more countries or
convention.
2. It is constituted not
for profit
3. The authority or body
and income exempt
shall be notified by the
Central Government
10(43) An individual Amount received as loan Entire amount The loan received either
in lump sum or in
installments should be
in transaction of reverse
mortgage as referred to
in section 47(xvi).
10(44) New pension
system trust
Any income received for
and on behalf of such trust
Entire amount Such pension system
trust, as is established
on 27-2-2008 under
Indian Trust Act, 1882.
10(45) Chairman or
member
(including
retired one) of
union public
service
commission
Notified allowance or
perquisites
Entire amount Any notified allowance
or perquisites to such
persons paid (w.r.e.f. 1-
4-2008)
10(46) Any body,
authority, Board
or Trust
Specified income Specified
amount
1. Such body, authority,
etc. should be formed
under Central, State or
Provincial Act or by the
Central or State
Government.
2. The such body should
be established for
regulating or
administrating activities
for benefit of general
public.
3. The nature and the
extent of income
exempt, shall be
specified by the Central
Government.
10(47) Infrastructure
debt fund
Any income Entire income 1. The fund is set up as
per prescribed
guidelines
2. The notification is
issued by the
Government in this
regard.