List of 136 incomes on which tax is not required to be paid in India. (Complete List of exempt income along with sections and conditions)

Taxation

Generally when any person (Individual, HUF, AOP, BOI, AJP, Firm, Company or trust etc.) earn any income, then some part of that income is required to paid to Government in the form of Income Tax as per prevailing provisions of law of the country. But some incomes are exempted by law and tax is not required to be paid on these incomes on compliance of certain conditions. Please refer the list of exempted incomes as given below:-

S.N.SectionNature of Exempt IncomeRemarks / conditions
1Section 10(1)Agriculture IncomeThis is the exemption which is enjoyed by maximum number of people in India. As per schedule VII of Constitution of Income, Central Government cannot impose tax on agriculture income but state government can do so. Presently Agriculture Income is fully exempt and income tax is not required to be paid on agriculture income. But w.e.f Finance Act 2014, If agriculture income exceed Rs. 5000/- and other income other than agriculture are more than basic exemption limit then agriculture income is added to other income only to arrive at tax rate for other income. Hence agriculture income increased the tax rate on other income but agriculture still remain exempt.
2Section 10(2)Any amount received by an individual from his HUF.Subject to the provisions of section 64(2), any sum received by an individual as a member of a Hindu undivided family (HUF), 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
3Section 10(2A)Income received by partners of a firm, as shared between themAs per section 10(2A), Profit share received by a partner from a firm is exempt from tax in the hands of the partner. But interest on capital and remuneration received by the partner from the firm/LLP is not exempt.
4Section 10(4)(i)Interest (on certain notified bonds & securities) received by Non-resident.As per section 10(4)(i), in the case of a non-resident any income by way of interest on certain notified securities or bonds (including income by way of premium on the redemption of such bonds) is exempt from tax.
5Section 10(4)(ii)Any interest in Non-resident (external) account of an Individual resident outside India.As per section 10(4)(ii), in the case of an individual (who is resident outside India), any income by way of interest on money standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with the Foreign Exchange Management Act, 1999, and the rules made thereunder is exempt from tax.
6Section 10(4B)Interest (on NSC) income of Individual who is not a resident Indian, but of Indian originInterest income (On NSC issued by CG before 01-06-2002 and were subscribed in convertible foreign exchange) of an individual, being a citizen of India or a person of Indian origin, who is a non-resident is exempt u/s 10(4B).
7Section 10(4C)Interest Income of Non-resident or foreign company on Rupee Denominated bond.Any interest received or receivable by a non-resident or foreign company in respect of Rupee Denominated Bond (as referred to in Section 194LC) issued outside India during the period 17-09-2018 to 31-03-2019 by an Indian company/business trust shall be exempt from tax.
8Section 10(4D)Income of specified fund from transfer of GDRs, Rupee denominated Bonds or DerivativesSpecified funds (Investment Division of an Offshore Banking Unit OR Alternative Investment Fund) shall be eligible to claim exemption with respect to income which is attributable to units held by a non-resident (not being a PE in India) or to the investment division of offshore banking unit. Such exemption is allowed in respect of the
following incomes:
(a) Income from transfer of a capital asset as referred to in Section 47(viiab) on a recognised stock exchange located in IFSC and consideration is paid or payable in ‘convertible foreign
exchange’;
(b) Income arising from transfer of securities (other than shares in a company resident in India);
(c) Income from securities issued by a non-resident (not being a PE of a non-resident in India) and where such income otherwise does not accrue or arise in India; or
(d) Income from a securitization trust which is chargeable under the head ‘Profits and gains from business or profession’.
9Section 10(4E)Income on transfer of non-deliverable forward contracts entered into with an offshore banking unit of IFSCAny income of a non-resident which is a result of the transfer of nondeliverable forward contracts shall be exempt from tax. However, such non-deliverable forward contracts shall be entered into with an offshore banking unit of IFSC which commenced operations on or before the 31st March, 2024 and fulfils prescribed conditions.
10Section 10(4F)Royalty income of non-resident on leasing of aircraft to an IFSC unitRoyalty income of a non-resident on account of leasing of aircraft in a previous year to an IFSC unit shall be exempt from tax if such unit is eligible for deduction under section 80LA in that year and has commenced its operations on or before the 31st March 2024.
11Section 10(5)Leave Travel ConcessionAn employee can claim exemption under section 10(5) in respect of Leave Travel Concession. Exemption under section 10(5) is available to all employees (i.e. Indian as well as foreign
citizens). Exemption is available for 2 journeys in a block of 4 years. The block applicable for current period is calendar year 2018-2019-2020-2021. The previous block was of calendar year 2014-2015-2016-2017. Exemption is in respect of actual expenditure on fare (shortest route), hence, if no journey is performed, then no exemption is available. Exemption is available in respect of value of any travel concession or assistance received or due to the employee from his employer (including former employer) for himself and his family members in connection with his proceeding on leave to any place in India. Please note that If an employee has not availed of travel concession or assistance in respect of one or two permitted journeys in a particular block of 4 years, then he is entitled to carry over one journey to the next block. In this situation, exemption will be available for 3 journeys in the next block. However, to avail of this benefit, exemption in respect of journey should be utilised in the first calendar year of the next block
12Section 10(6)(ii)Remuneration received by specified diplomats and their staffAs per section 10(6)(ii), in case of an individual who is not a citizen of India, remuneration received by him as an official (by whatever name called) of an embassy, high Commission, legation, commission, consulate or trade representative of a foreign State, or member of the staff of any of that official is exempt from tax, if corresponding Indian official in that foreign country enjoys a similar exemption.
13Section 10(6)(vi), (viii)Salary of a foreign employee and non-resident member of crewAs per section 10(6)(vi), the remuneration received by a foreign national as an employee of a foreign enterprise for services rendered by him during his stay in India is exempt from tax,
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 90 days in such year ; and
(c) such remuneration is not liable to be deducted from the income of the employer.
As per section 10(6)(viii), any salaries received by or due to a non-resident foreign national 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 90 days in the year is exempt from tax.
14Section 10(6)(xi)Remuneration of a foreign traineeAs per section 10(6)(xi), the remuneration received by a foreign trainee as an employee of foreign Government during his stay in India in connection with his training in any establishment
or office of the Government.
15Section 10(6A)Tax paid on behalf of foreign company deriving income by way of royalty or fees for technical
services
Tax paid by Central Government, State Government or an Indian concern on behalf of a foreign company deriving income by way of royalty or fees for technical services in pursuance of an agreement made after March 31, 1976 but before June 1, 2002 will be exempt from tax in the hands of such foreign company provided such agreement is in accordance with the industrial policy of the Indian Government or it is approved by the Central Government.
16Section 10(6B)Tax paid on behalf of foreign company or non-resident in respect of other incomeTax paid by Central Government, State Government or an Indian concern on behalf of a foreign company or non-resident in respect of any income (not being salary, royalty or fees for technical services) will be exempt from tax in the hands of such foreign company or non-resident if such income is received in pursuance of an agreement entered into before June 1, 2002 by the Central
Government with the Government of a foreign State or international organisation or any other related agreement approved by the Central Government.
17Section 10(6BB)Tax paid on behalf of foreign Government or foreign enterprise deriving income by way of lease of aircraft or aircraft engineTax paid by an Indian company, engaged in the business of operation of aircraft, on behalf of foreign Government or foreign enterprise deriving income by way of lease of aircraft or aircraft
engine will be exempt from tax in the hands of such foreign Government or foreign enterprise if such lease rental is received under an agreement which is approved by Central Government and
entered during the period between 31-3-1997 to 1-4-1999, or after 31-3-2007
18Section 10(6C)Technical fees received by a notified foreign companySection 10(6C) grants exemption from tax in respect of income arising to notified foreign company by way of royalty or fees for technical services received in pursuance of an agreement entered into with that Government for providing services in or outside India in projects connected with security of India
19Section 10(6D)Royalty/Fees received by non-resident from National Technical Research OrganisationAs per section 10(6D), income arising to non-resident by way of royalty or fees for technical services from services rendered to National Technical Research Organization (‘NTRO’) will be
exempt from tax in India.
20Section 10(7)Allowances received by government employees stationed abroadAs per section 10(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 is exempt from tax.
21Section 10(8)Income of foreign Government employee under co-operative technical assistance programmeAs per section 10(8), remuneration received directly or indirectly by an individual, from the foreign Government in connection with a co-operative technical assistance programme and projects in accordance with an agreement entered into by the Central Government and such foreign Government, is exempt from tax. Further, exemption is available in respect of any other income of such an individual which accrues or arises outside India and is not deemed to accrue or arise in India, provided such individual is required to pay income-tax/ social security tax to the foreign Government.
22Section 10(8A)Income earned by a consultantUnder section 10(8A), (a) remuneration or fees received by a consultant* directly or indirectly out of the funds made available to an international organisation, under a technical assistance agreement between such organisation and the Government of a foreign State and (b) any other income which accrues or arises to him outside India and is not deemed to accrue or arise in India,
in respect of which such consultant is required to pay income-tax/social security tax to the foreign Government of the country of his origin, is exempt from tax.
23Section 10(8B)Income earned by a consultant’s staff or employeesSection 10(8B) grants similar exemption to the employee of consultant (as under section 10(8A)), if such employee is either not a citizen of India or being a citizen of India, is not ordinarily resident in India and the contract of his service is approved by prescribed authority before the commencement of his service
24Section 10(9)Income earned by any family member of a foreign employee in India under the Cooperative Technical Assistance ProgramAs per section 10(9), the income of any member of the family of any such individual as is referred to in section 10(8)/(8A)/(8B) accompanying him to India, which accrues or arises outside India and is not deemed to accrue or arise in India, in respect of which such member is required to pay any income or social security tax to the Government of that foreign State or country of origin of such member, as the case may be, is exempt from tax
25Section 10(10)GratuityExemption of gratuity can be summarized in three parts:-

First part:- Gratuity received by Government employee (i.e., Central Government or State Government or local authority) is fully exempt u/s 10(10)(i).

Second Part:- As per section 10(10)(ii), exemption in respect of gratuity in case of employees covered by the Payment of Gratuity Act, 1972 will be lower of three below —
(i) 15 days’ salary × years of service.
(ii) Maximum amount specified, i.e., Rs. 20,00,000/-
(notification No. 1420(E) dated 29-3-2018)
(iii) Gratuity actually received

Notes:-
(i) Instead of 15 days’ salary, only 7 days salary will be taken into consideration in case of employees of seasonal establishment.
(ii)) 15 days’ salary = Salary last drawn × 15/26
(iii) Salary for this purpose will include basic salary and dearness allowance only. Items other than basic salary and dearness allowance are not to be considered.
(iv) In case of piece rated employee, 15 days’ salary will be computed on the basis of average of total wages (excluding overtime wages) received for a period of three months
immediately preceding the termination of his service.
(v)) Part of the year, in excess of 6 months, shall be taken as one full year.

Third Part:- As per section 10(10)(iii), exemption in respect of gratuity in case of employees not covered by the Payment of Gratuity Act, 1972 will be lower of following three :
(i) Half month’s salary for each completed year of service, i.e.,
[Average monthly salary × ½] × Completed years of service. .
(ii) Maximum amount specified, Rs. 10,00,000.
(iii) Gratuity actually received.
Note:
(i) Average monthly salary is to be computed on the basis of average of salary for 10 months immediately preceding the month of retirement.
(ii) Salary for this purpose will include basic salary, dearness allowance, if the terms of service so provide and commission based on fixed percentage of turnover achieved by the employee.
(iii) While computing years of service, any fraction of a year is to be ignored
26Section 10(10A)The commuted value of the pension earned by an individualExemption of Pensions can be summarized in three parts:-

1. Uncommuted pension (i.e. monthly pension) is not exempt and fully taxable for government as well as non-government employees.
2. Any commuted pension, (i.e., accumulated pension) received by Government employee is fully exempt u/s 10(10A).
3. Exemption in respect of commuted pension in case of a non-Government employee will be as follows:-
(i) If the employee receives gratuity, 1/3 of full value of commuted pension will be exempt from tax under section 10(10A).
(ii) If the employee does not receive gratuity, one half of full value of commuted pension will be exempt from tax under section 10(10A).
27Section 10(10AA)Any amount earned via encashment of leave Leave encashment during the service is fully taxable. Exemption of leave encashment is summarized below:-

1. As per section 10(10AA), leave encashment by a Government employee at the time of retirement (whether on superannuation or otherwise) is exempt from tax.
2. In the hands of non-Government employee exemption will be least of the following:
(i) Period of earned leave standing to the credit in the employee’s account at the time of retirement (maximum 30 days per year of service) × Average monthly salary.
(ii) Average monthly salary × 10
(iii) Maximum amount as specified i.e., Rs. 3,00,000.
(iv) Leave encashment actually received at the time of retirement.


Please note that Salary for the above purpose means average salary drawn in the past ten months immediately preceding the retirement (i.e., preceding the day of retirement) and will include basic salary, dearness allowance (if considered for computing all the retirement benefits) and commission based on fixed percentage of turnover achieved by the employee. Apart from the above items, salary for this purpose does not include any other allowances or perquisites.
28Section 10(10B)Compensation paid to workers due to relocationAs per section 10(10B), compensation received at the time of retrenchment is exempt from tax to the extent of lower of the following:
(i) An amount calculated in accordance with the provisions of section 25F(b) of the Industrial Dispute Act, 1947 (i.e. equal to
15 days’ average pay for each completed year of continuous service or any part in excess of six months)
(ii) Maximum amount specified i.e. Rs. 5,00,000/-
(iii) Actual amount received.

29Section 10(10BB)Any remittance obtained as per the Bhopal Gas Leak Disaster Act 1985Compensation [in accordance with Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985] received by victims of Bhopal gas leak disaster is exempt from tax. However, compensation
received for any expenditure which is allowed as deduction from taxable income is not exempt.
30Section 10(10BC)Any compensation obtained in the event of a disasterAny amount received from the Central Government or State Government or a Local Authority by an individual or his legal heirs as compensation on account of any disaster is exempt from tax.
However, no deduction is available in respect of the amount received or receivable to the extent such individual or his legal heirs has been allowed a deduction under the Act on account of loss or damage caused due to such disaster
31Section 10(10C)Payment at the time of voluntary retirementAs per section 10(10C), any compensation received at the time of voluntary retirement or termination of service is exempt from tax, if the following conditions are satisfied:-
(i) Compensation is received at the time of voluntary retirement or termination (or in the case of an employee of public sector Company, at the time of voluntary separation).
(ii) Compensation is received by an employee of following undertakings:-
a) public sector company ; or
b) any other company ; or
c) an authority established under a Central, State or Provincial Act ; or
d) a local authority ; or
e) a co-operative society ; or
f) a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956) ; or
g) an Indian Institute of Technology within the meaning of clause (g) of section 3 of the Institutes of Technology Act, 1961 (59 of 1961) ; or
h) any State Government; or
i) the Central Government; or
j) Notified institutes having importance throughout India or in any State or States,
k) Notified institute of management
(iii) Compensation is received in accordance with the scheme of voluntary retirement/separation, which is framed in accordance with guidelines prescribed under Rule 2BA of Income-tax Rules, 1962*.
(iv) Maximum amount of exemption is Rs. 5,00,000.

Where exemption is allowed to an employee under section 10(10C) for any assessment year, no exemption under this section shall be allowed to him for any other assessment year.
With effect from assessment year 2010-11, section 10(10C) has been amended to provide that where any relief has been allowed to an assessee under section 89 for any assessment year in respect of any amount received or receivable on his voluntary retirement or
termination of service or voluntary separation, no exemption under section 10(10C) shall be allowed to him in relation to such or any other assessment year.
32Section 10(10CC)Any income received through taxation on perquisitesAs per section 10(10CC) tax paid by employer (on behalf of employee) on non-monetary perquisites will be exempt from tax in the hands of employees. Such tax paid by the employer shall not be allowed as a deductible expenditure in the hands of employer under section 40. Section 10(10CC) provides exemption only in respect of tax on non-monetary perquisites.
33Section 10(10D)Any amount acquired via a life insurance policy1. As per section 10(10D), any amount received under a life insurance policy, including bonus is exempt from tax.

2. Exemption under section 10(10D) is unconditionally available in respect of sum received for a policy which is issued on or before March 31, 2003.

3. However, in respect of policies issued on or after April 1st, 2003, the exemption is available only if the amount of premium paid on such policy in any financial year does not exceed 20% (10% in respect of policy taken on or after 1st April, 2012) of the actual capital sum assured. With effect from 1-4-2013, in respect of policy taken in the name of a person suffering from diseases specified under section 80DDB or in the name of a person suffering from disability specified under section 80U, the limit will be increased to 15% of capital sum assured.

4.Amount received on death of the person will continue to be exempt without any condition.

Note 1: No exemption would be available in case of any sum received under section 80DD(3) or under Keyman insurance policy.

Note 2: w.e.f. Assessment Year 2021-22, any sum received from Unit Linked Insurance Plan (ULIP) is not entitled for exemption if such ULIP is issued on or after the 01-02-2021 and then amount of premium payable for any of the previous year during the term of such policy exceeds 2,50,000. Further, if premium is payable by a person for more than one ULIP, issued on or after 01-02-2021, the exemption under Section 10(10D) shall be available in respect to those ULIPs, where the aggregate amount of premium does not exceed Rs. 2,50,000 in any of the previous year during the term of any of those policies.
34
Section 10(11)Any payment received via the Statutory Provident FundTaxability of Statutory Provident Fund:-

Any payment from a provident fund to which the Provident Funds Act, 1925, applies or from any other provident fund set up by the Central Government and notified by it in this behalf in the Official Gazette is exempt u/s 10(11). Notable points in this regards are-
1. Deduction u/s 80C is allowed for employee contribution to statutory provident fund.
2. Employer’s contribution to such fund is not treated as income of the employee
3. Lump sum amount received from such fund, at the time of termination of service is exempt in the hands of employees
4. Upto FY 2020-21, Interest credited to such fund is fully exempt in the hands of the employee. But w.e.f FY 2021-22, No exemption shall be available for the interest income accrued during the previous year in the recognized and statutory provident fund to the extent it relates to the contribution made by the employees over Rs. 2,50,000 in the previous year. However, if an employee is contributing to the fund but there is no contribution to such fund by the employer, then the interest income accrued during the previous year shall be taxable to the extent it relates to the contribution made by the employee to that fund in excess of Rs. 5,00,000 in a financial year
35Section 10(11A)Payment from Sukanya Samriddhi Yojana Account Any payment from an account opened in accordance with the Sukanya Samriddhi Account Rules, 2014 is exempt from tax. In other words, interest and withdrawals from SSY account will be exempt from tax under section 10(11A).
36Section 10(12)Any payment received via a recognised or authorised FundTaxability of recognized Provident Fund:-

The accumulated balance due and becoming payable to an employee from recognised provident fund, to the extent provided in rule 8 of Part A of the Fourth Schedule (12%of Salary). Notable points in this regards are-
1. Deduction u/s 80C is allowed for employee contribution to recognized provident fund.
2. Employer’s contribution to RPF upto 12% of salary is exempt in the hand of the employee. But Employer’s contribution exceeding 12% of salary shall be added to employees taxable income.
3. Interest credited to such fund up to 9.5% p.a. is exempt in the hands of the employee, interest in excess of 9.5% is charged to tax in the hands of the employee. But w.e.f FY 2021-22, No exemption shall be available for the interest income accrued during the previous year in the recognized and statutory provident fund to the extent it relates to the contribution made by the employees over Rs. 2,50,000 in the previous year. However, if an employee is contributing to the fund but there is no contribution to such fund by the employer, then the interest income accrued during the previous year shall be taxable to the extent it relates to the contribution made by the employee to that fund in excess of Rs. 5,00,000 in a financial year.
4. If certain conditions are satisfied, then lump sum amount received from such fund, at the time of termination of service, is exempt in the hands of employees. Accumulated balance paid from a recognised provident fund will be exempt from tax in following cases:
(a) If the employee has rendered a continuous service of 5 years or more. If the accumulated balance includes amount transferred from other recognised provident fund maintained by previous employer, then the period for which the employee rendered service to such
previous employer shall also be included in computing the aforesaid period of 5 years.
(b) If the service of employee is terminated before the period of 5 years, due to his ill health or discontinuation of business of the employer or other reason beyond his control.
(c) If on retirement, the employee takes employment with any other employer and the balance due and payable to him is transferred to his individual account in any recognised fund maintained by such other employer, then the amount so transferred will not be
charged to tax.
37Section 10(12A)Payment from the National Pension System Trust to an assesseeAny payment from the National Pension System (NPS) Trust to an assessee on closure of account or his opting out of the pension scheme referred to in section 80CCD, to the extent it does not exceed 40 % (changed to 60% w.e.f 1st April 2020) of the total amount payable to him at the time of closure or his opting out of the scheme, is exempt from tax.

As per rules, on maturity maximum 60% of total amount due in NPS account can be withdrawn as lump sum and this sum will be exempt u/s 10(12A). Balance amount is used to buy annuity plans and monthly pension received from such annuity plan is taxable.
38Section 10(12B)Partial withdrawal from NPSAs per section 10(12B) (w.e.f FY 2017-18), partial withdrawal from NPS will not be chargeable to tax if the following conditions are satisfied:-
(i)Amount of withdrawal should not exceed 25% of total contribution made by an employee in NPS.
(ii) Partial withdrawal should be made in accordance with the terms and conditions specified under the Pension Fund Regulatory and Development Authority Act, 2013 and the regulations made thereunder.
39Section 10(13)Any payment received through a Superannuation FundApproved superannuation fund means superannuation fund which is approved by the Commissioner of Income-tax. Tax treatment of such fund is as follows:-
(i) Employer’s contribution is exempt from tax, however, from assessment year 2010-11 employer’s contribution in excess of Rs. 1,50,000 per annum is charged to tax as perquisite. Employee’s contribution qualifies for deduction under section 80C and
interest on accumulated balance is not liable to tax.
(ii)Payments made from the fund are exempt from tax under section 10(13) in following cases:
(a) Payment on death of beneficiary; or
(b) Payment to employee in lieu of, or in commutation of an annuity on his retirement at or after the specified age or on his becoming incapable prior to such retirement; or
(c) Payment by way of refund of contributions on the death of a beneficiary; or
(d) Payment to employee by way of refund of his contributions on 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; or
(e) Payment to employee by way of transfer to his account under a pension scheme referred to in section 80CCD.
40Section 10(13A)House Rent AllowanceExemption of House Rent allowance.
As per section 10(13A), read with rule 2A, the exemption in respect of HRA will be lower of the following amounts:
(1) 50% of salary, when residential house is situated at Mumbai, Kolkata, Delhi or Chennai and 40% of salary where residential house is situated at any other place.
(2) HRA actually received by the employee in respect of the period during which rental accommodation is occupied by the employee during the previous year.
(3) Rent paid in excess of 10% of salary.


Salary will include basic salary, dearness allowance forming part of salary while computing all retirement benefits and commission based on fixed percentage of turnover achieved by the employee. Apart from this, salary for this purpose does not include any other
allowances/perquisites.

Salary for this purpose shall be computed on due basis in respect of period during which the accommodation is occupied by the employee in the previous year. Hence, any payments not pertaining to the previous year or not pertaining to the period of occupation of the accommodation shall be excluded
41Section 10(14)(i)Allowances utilized to meet expenses incurred in the performance of the dutiesAny such special allowance or benefit, specifically granted to meet expenses incurred in the performance of the duties are exempt u/s 10(14(i) to the extent to which such expenses are actually incurred for that purpose. The following allowances are covered under this category:-
1. Travelling Allowance to meet the cost of travel on tour or on transfer
2. Daily Allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty
3. Conveyance Allowance granted to meet the expenditure on conveyance in performance of duties of an office.
4. Helper/Assistant Allowance.
5. Research Allowance granted for encouraging the academic research and other professional pursuits.
6. Uniform Allowance
42Section 10(14)(ii)Allowance granted to the assessee to meet his personal expensesAs per section 10(14(ii), Certain allowances granted to assessee to meet his personal expenses are exempt to the limit provided below:-

1. Children Education Allowance Up to Rs. 100 per month per child up to a maximum of 2 children is exempt

2. Hostel Expenditure Allowance Up to Rs. 300 per month per child up to a maximum of 2 children is exempt

3. Transport Allowance granted to an employee to (who is a blind and handicap) meet expenditure on commuting between place of residence and place of duty: Rs. 3,200 per month for blind and
handicapped employees is exempt

4. Allowance granted to an employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided employee is not in receipt of daily
allowance.
Amount of exemption shall be lower of
following:
a) 70% of such allowance; or
b) Rs. 10,000 per month.

5. Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations):-Amount exempt from tax varies from Rs.
300 to Rs. 7,000 per month.

6. Border area, Remote Locality or Disturbed Area or difficult Area Allowance (Subject to certain conditions and locations):-Amount exempt from tax varies from Rs.200 to Rs. 1,300 per month.

7. Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Orissa :exempt Up to Rs. 200 per month

8. Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)- Exempt
Up to Rs. 2,600 per month

9. Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations):- Exempt Up to Rs. 1,000 per month

10. Counter Insurgency Allowance granted to members of Armed Forces operating in areas away from their permanent locations. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions
and locations); Exempt Up to Rs. 3,900 per month

11. Underground Allowance to employees working in uncongenial, unnatural climate in underground mines:- Exempt Up to Rs. 800 per month

12. High Altitude Allowance granted to armed forces operating in high altitude areas (Subject to certain conditions and locations) is exempt-
a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet)
b) Up to Rs. 1,600 per month (for altitude above 15,000 feet)

13. Highly active field area allowance granted to members of armed forces (Subject to certain conditions and locations);- Exempt Up to Rs. 4,200 per month

14. Island Duty Allowance granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations)- Exempt Up to Rs. 3,250 per month
43Section 10(15)Income received in the form of interestVarious Interest income are exempt u/s 10(15) as per list given below:-

1. Section 10(15)(i):-Interest, premium on redemption, or other payment on notified securities, bonds, certificates, and deposits, etc.(subject to notified conditions and limits) for All assessees.

2. Section 10(15)(iib) :- Interest on notified Capital Investment Bonds notified prior to 1-6-2002 for Individual/HUF.

3. Section 10(15)(iic);-Interest on notified Relief Bonds for individual/HUF.

4. Section 10(15)(iid);- Interest on notified bonds (notified prior to 1-6-2002) purchased in foreign exchange (subject to certain
conditions)for Individual – NRI/nominee or survivor of NRI/individual to whom bonds have been gifted by NRI.

5. Section 10(15)(iii):- Interest on securities for Issue Department of
Central Bank of Ceylon.

6. Section 10(15)(iiia):- Interest on deposits made with scheduled bank with approval of RBI for Bank incorporated abroad.

7. Section 10(15)(iiib):- Interest payable to Nordic Investment Bank is exempt for Nordic Investment Bank

8. Section 10(15)(iiic):-Interest payable to the European Investment
Bank on loan granted by it in pursuance of frameworkagreement dated 25-11-1993 for financial corporation between Central Government and that bank is exempt for European Investment Bank.

9. 10(15)(iv)(a) Interest received from Government or from local
authority on moneys lent to it before 1-6-2001 or debts owed by it before 1-6-2001, from sources outside India is exempt for all assessees who have lent money, etc., from sources outside India.

10. Section 10(15)(iv)(b):- Interest received from industrial undertaking in India on moneys lent to it under a loan agreement entered into before 1-6-2001 is exempt for Approved foreign
financial institution.

11. Section 10(15)(iv)(c):- Interest at approved rate received from Indian industrial undertaking on moneys lent or debt incurred before 1-6- 2001 in a foreign country in respect of purchase outside India of raw materials, components or capital plant and
machinery, subject to certain limits and conditions for all assessees who have lent such money, or in favour of whom such debt has been incurred

12. Section 10(15)(iv)(d):- Interest received at approved rate from specified financial institutions in India on moneys lent from
sources outside India before 1-6-2001 for all assessees who
have lent such moneys.

13. Section 10(15)(iv)(e):- Interest received at approved rate from other Indian financial institutions or banks on moneys lent for
specified purposes from sources outside India before 1-6-2001 under approved loan agreement for all assessees who have lent such moneys.

14. Section 10(15)(iv)(f):- Interest received at approved rate from Indian industrial undertaking on moneys lent in foreign currency from sources outside India under loan agreement approved
before 1-6-2001 for All assessees who have lent such moneys

15. Section 10(15)(iv)(fa):- Interest payable by scheduled bank, on deposits in foreign currency when acceptance of such deposits by
bank is approved by RBI for Non-resident or individual/HUF who
is not ordinarily resident in India

16. Section 10(15)( iv)(g):- Interest received at approved rate, from Indian public companies eligible for deduction under section
36(1)(viii) and formed with main object of providing long-term housing finance, on moneys lent in foreign currency from sources outside India under loan agreement approved before 1-6-2003 for
all assessees who have lent such moneys.

17. Section 10(15)( iv)(h);- Interest received from any public sector company in respect of notified bonds or debentures and subject to
certain conditions for all assessees.

18. Section 10(15)( iv)(i) Interest received from Government on deposits in notified scheme out of moneys due on account of
retirement for Individual – Employee of Central Government/State
Government/Public sector company.

19. Section 10(15)(v) Interest on securities held in Reserve Bank’s SGL A/c No. SL/DH-048 and Deposits made after 31-3-1994 for
benefit of victims of Bhopal Gas Leak Disaster held in such account with RBI or with notified public sector bank for Welfare Commissioner, Bhopal Gas Victims, Bhopal.

20. Section 10(15)(vi):- Interest on Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 or deposit certificates issued
under the Gold Monetisation Scheme, 2015 for all assessees.

21. Section 10(15)(vii):- Interest on notified bonds issued by a local
authority/State Pooled Finance Entity for all assessees.

22. Section 10(15)(viii):- Interest on deposit made on or after 1-4-2005 in an Offshore Banking Unit referred to in section 2(u) of the
Special Economic Zones Act, 2005 for Non-resident or person who is not ordinarily resident.

23. Section 10(15)(ix):- Interest payable by a unit located in an International Financial Services Centre in respect of monies borrowed by it on or after the 1st day of September, 2019 for Non-resident.
44Section 10(15A)Income received by an Indian firm through the lease of an aircraft from a foreign firm or governmentLease rent of an aircraft or an aircraft engine paid to a foreign Government or to a foreign enterprise by an Indian company, engaged in the business of operation of aircraft is not taxable
in the hands of such foreign Government or non-resident concern, if such payment is in pursuance of an agreement (approved by the Central Government) made before April 1, 1997 or after March 31, 1999 but before April 1, 2007.
45Section 10(16)Income in the form of a scholarshipAny amount received as educational scholarship (i.e., scholarship to meet the cost of education) is exempt from tax in the hands of recipient.
46Section 10(17)Allowances granted to MLCs, MLAs or MPsFollowing allowances are exempt from tax in the hands of a Member of Parliament and a Member of State Legislature—
• Daily allowance received by a Member of Parliament or by a Member of State Legislature or by member of any committee thereof.
• Any other allowance received by a Member of Parliament under the Members of Parliament (Constituency Allowance) Rules, 1986.
• Any Constituency allowance received by a Member of State Legislature.
47Section 10(17A)Income received in the form of a government awardAny payment received in pursuance of following (whether paid in cash or in kind) is exempt from tax:
(i)Any award instituted in the public interest by the Central Government or State Government or by any other body approved by the Central Government in this behalf.
(ii)Any reward by the Central Government or any State Government for such purpose as may be approved by the Central Government in this behalf in the public interest.
48Section 10(18)Income received in the form of pension by winners of awards for heroismPension received by an individual who was employee of the Central Government or State Government and who has been awarded Param Vir Chakra or Maha Vir Chakra or Vir Chakra or any other notified gallantry award is exempt from tax. Family pension received by any member of such individual is also exempt
49Section 10(19)Income received by family members of the armed forces in the form of pensionFrom the assessment year 2005-06, family pension received by the widow or children or nominated heirs, of a member of armed forces (including paramilitary forces) of the Union, is exempt from tax in the hands of such family members, if the death of such member of armed forces has occurred in the course of operational duty in prescribed circumstances and subject to such conditions as may be prescribed under Rule 2BBA.
50Section 10(19A)Income received from a single palace of an exrulerAnnual value of any one palace in the occupation of a former ruler is exempt from tax under section 10(19A)
51Section 10(20)Income received by a localised body or authorityThe following income of a local authority is exempt from tax:
a) Income which is chargeable under the head “Income from house property”, “Capital gains” or “Income from other sources” or
b) Income 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
c) Income from business of supply of water or electricity within or outside its own jurisdictional area.
52Section 10(21)Income received by an association involved with scientific researchAny income of a research association, approved under section 35(1)(ii)/(iii) is exempt from tax, if following conditions as specified in section 10(21) are satisfied:-

1) Income should be applied or accumulated wholly and exclusively for the objects for it established.

2) Funds should not be invested or deposited for any period during the previous year otherwise than in any one or more of the forms/modes specified in section 11(5). However, this condition is not applicable in respect of the following:-
(i) any assets held by the research association where such assets form part of the corpus of the fund of the association as on the 1st day of June, 1973;
(ii) Debentures of a company acquired by the research association before the 1st day of March, 1983;
(iii) any accretion to the shares, forming part of the corpus of the fund mentioned in sub-clause (i), by way of bonus shares allotted to the research association;
(iv) voluntary contributions received and maintained in the form of jewellery, furniture or any other article as the Board may, by notification in the Official Gazette, specify,
53Section 10(22B)Income earned by a news or broadcasting agencyAny income of a notified news agency, set-up in India solely for collection and distribution of news is exempt from tax 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.
54Section 10(23A)Income earned by certain Professional InstitutesAny income (other than income from house property and income from rendering any specific service or income by way of interest or dividend on investment) of an professional institution/association is exempt from tax, if the following conditions are satisfied:-
1) Professional institution is established in India for the purpose of control, supervision, regulation or encouragement of the profession of law, medicine, accountancy, engineering or architecture or such other notified profession.
2) The institution applies its income, or accumulates it for application, solely to the objects for which it is established.
3) The institution is approved by the Central Government by general or special order.
55Section 10(23AA)Income acquired through Regimental FundAny 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, is exempt from tax.
56Section 10(23AAA)Income acquired through an employee welfare fundAny income received by any person on behalf of a fund established, for such purpose as may be notified by the Board in Official Gazette, for the welfare of employees or their dependents and of
which fund such employees are members, is exempt from tax, if such fund applies or accumulates its income for exclusive application towards its objects, invests its funds in the modes specified in section 11(5) and such fund is approved by the Principal Commissioner or Commissioner in accordance with rule made in this behalf (see rule 16C and Form No. 9).
57Section 10(23AB)Insurance pension fund incomeAny income of a fund set-up by the Life Insurance Corporation of India on or after August 1, 1996 or any other insurer to which contribution is made by any person for receiving pension from such fund, and which is approved by the Controller of Insurance or the Insurance Regulatory and Development Authority, is exempt from tax.
58Section 10(23B)Income earned by village industry development institutionsIncome of an institution constituted as a public charitable trust or society which is established for the development of khadi and village industries (not for profit purpose) is exempt from tax, if
following conditions are satisfied:-
1) Income is attributable to the business of production, sale, or marketing, of khadi or products of village industries.
2) Institution applies its income, or accumulates it for application, solely for the development of khadi or village industries or both
3) Institution is approved by the Khadi and Village Industries Commission
59Section 10(23BB)Income earned by state level Khadi and Village Industries BoardAny income of Khadi and Village Industries Boards is exempt from tax under section 10(23BB).
60Section 10(23BBA)Income earned by regulatory bodies of institutions affiliated with religion and charityAny incomes of bodies or authority established or constituted or appointed under any Central, State or Provincial Act for the administration of public, religious or charitable trust or endowments (including any place of religious worship) or societies for religious or charitable purpose, is exempt from tax. However, this exemption shall not apply to income of any such trust, endowment, or society.
61Section 10(23BBB)Income received by the European Economic CommunityAny income of European Economic Community derived in India by way of interest, dividends or capital gains, from investments made out of its funds under a notified scheme is exempt from tax.
62Section 10(23BBC)Income received through SAARC funded regional projectsAny income of SAARC fund for Regional Projects is exempt from tax under section 10(23BBC).
63Section 10(23BBE)Income received by the IRDAAny income of the Insurance Regulatory and Development Authority established under IRDA Act, 1999 is exempt from tax.
64Section 10(23BBH)Income received through Prasar BhartiAny income of the Prasar Bharati (Broadcasting Corporation of India) established under section 3(1) of the Prasar Bharati (Broadcasting Corporation of India) Act, 1990 is exempt from tax.
65Section 10(23C)Income received by any individual through certain specified funds(1) Any income received by any person on behalf of the Prime Minister’s National Relief Fund or the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND), the Prime Minister’s Fund (Promotion of Folk Art) or the Prime Minister’s Aid to Students Fund is exempt from tax under clause (i), (ii) and (iii) of section 10(23C) respectively.

(2)Any income of National Foundation for Communal Harmony is exempt from tax under section 10(23C)(iiia).

(3) Income of the Swachh Bharat Kosh, set up by the Central Government is exempt under section 10(23C)(iiiaa).

(4) Income of the Clear Ganga Fund, set up by the Central Government is exempt under section 10(23C)(iiiaaa).

(5) As per section 10(23C)(iiiaaaa) (as inserted by the Finance Act, 2017 with retrospective effect from the assessment year 1998-99), income of the Chief Minister’s Relief Fund or the Lieutenant
Governor’s Relief Fund in respect of any state or union territory is exempt from tax

(6) Income of any university or other educational institution existing solely for educational purposes and not for purposes of profit, and which is wholly or substantially financed by the Government would be exempt under section 10(23C)(iiiab).

(7) Income of any university or other educational institution existing solely for educational purposes and not for purposes of profit would be exempt under section 10(23C)(iiiad) if the aggregate annual receipts of such university or educational institution do not exceed Rs. 1 Core (W.e.f. Assessment Year 2022-23, the Finance Act, 2021 has increased the limit of aggregate annual receipts from Rs. 1 crore to Rs. 5 crore)

(8) Income of any university or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in sub-clause (iiiab) or sub-clause (iiiad) and which may be approved by the prescribed authority. An application in the prescribed form and manner has to be made to the Principal Commissioner or Commissioner, for grant of approval.

(9) Income arises to any hospital or other institution for the reception and treatment of persons suffering from illness or mental defectiveness or for the reception and treatment of persons during convalescence or of persons requiring medical attention or rehabilitation, existing solely for philanthropic purposes and not for purposes of profit, shall be exempt from tax under following situations:-
(i) If the hospital or other institution is wholly or substantially financed by the Government then exemption would be available under section 10(23C)(iiiac).
(ii) If the aggregate annual receipt of such hospital or institution do not exceed Rs. 1 Crore then exemption would be available under section 10(23C)(iiiae).(W.e.f. Assessment Year 2022-23, the Finance Act, 2021 has increased the limit of aggregate annual receipts from Rs. 1 crore to Rs. 5 crore.
(iii) If the hospital is approved by the prescribed authority. An application in the prescribed form and manner has to be made to the Principal Commissioner or Commissioner, for grant of approval.

(10) If the person has receipts from university or universities or educational institution or institutions as referred to in section 10(23C)(iiiad), as well as from hospital or hospitals or institution or
institutions as referred to in section 10(23C)(iiiae), the exemptions under these clauses shall not apply, if the aggregate of annual receipts of the person from such university or universities or
educational institution or institutions or hospital or hospitals or institution or institutions, exceed Rs. 5 crore.

(11) Any income of a charitable institution or fund which is approved by the prescribed authority having regard to its objects and its importance throughout India or throughout any State or States
is exempt from tax.
An application in the prescribed form and manner has to be made to the Principal Commissioner or Commissioner, for grant of approval.
The Finance Act, 2020 has inserted an Explanation to the Third Proviso to Section 10(23C) to clarify that the corpus donations shall not form part of the income of charitable institutions or funds. It has been provided that any corpus donations received by such fund or institution or any university or other educational institution or any hospital or other medical institution, shall not be included in the income of such entities.

(12) Income of any trust (including any other legal obligation) or institution formed wholly for public religious purposes or wholly for public religious and charitable purposes, which is approved by
the prescribed authority having regard to the manner in which the affairs of the trust or institution are administered and supervised for ensuring that the income accruing thereto is properly applied
for the objects thereof, is exempt from tax.
An application in the prescribed form and manner has to be made to the Principal Commissioner or Commissioner, for grant of approval.
The Finance Act, 2020 has inserted an Explanation to the Third Proviso to Section 10(23C) to clarify that the corpus donations shall not form part of the income of charitable institutions or
funds. It has been provided that any corpus donations received by such fund or institution or any university or other educational institution or any hospital or other medical institution, shall not be
included in the income of such entities.
The Finance Act, 2021 has further amended the explanation to provide that voluntary contributions made with a specific direction that it shall form part of the corpus shall be invested or deposited in one or more of the forms or modes specified in Section 11(5) maintained specifically for such corpus.

In order to claim exemption under section 10(23C)(iv)/(v)/(vi)/(via), the fund or trust or institution or any university or other educational institution or any hospital or other medical institution, as the case may be, had to comply with the following conditions:-
(1) An application in the prescribed form and manner has to be made to the Principal Commissioner or Commissioner, for grant of approval within the prescribed time limits.
i. If entity is approved on or before 31-03-2021 (on or before 30-06-2021)
ii. If entity is approved and the period of such approval is due to expire (at least 6 months prior to expiry of said period)
iii. If entity has been provisionally approved Earlier of the following:-
(a)At least 6 months prior to expiry of the period of the provisional
approval;
(b) within 6 months of commencement of its activities.

iv. In any other case (At least 1 month prior to commencement of the previous year relevant to the assessment year from which said
approval is sought)

(2) On receipt of application for grant of approval, the Principal Commissioner or Commissioner is required to pass an order granting approval within the following period:
(i) If entity is approved on or before 31-03-2021 (Within 3 months calculated from end of month in which application is received)
(ii) If entity is approved and the period of such approval is due to expire (Within 6 months calculated from end of month in which application is received)
(iii) If entity has been provisionally approved (Within 6 months calculated from end of month in which application is received)
(iv) In any other case (Within 1 months calculated from end of month
in which application is received)

(3) Where application is made by an assessee (already approved for exemption) for renewal of approval or by an assessee which is provisionally approved for exemption, the Principal Commissioner or Commissioner may call for such documents or information or make such inquiries as he thinks necessary in order to satisfy himself about:
a) The genuineness of activities of assessee; and
b) The compliance of such requirements of any other law for the time being in force by it as are material for the purpose of achieving its objects.
If he is not satisfied about the genuineness of activities and compliance required he may pass an order rejecting the application and cancelling its approval. However, he is required to grant an
opportunity of being heard to the assessee.

(4) It should apply its income, or accumulates it for application, wholly and exclusively to the objects for which it is established and, in a case, where more than fifteen per cent of its income is accumulated on or after the 1st day of April, 2002, the period of the accumulation
of the amount exceeding fifteen per cent of its income shall in no case exceed five year.

(5) Funds should not be invested or deposited for any period during the previous year otherwise than in any one or more of the forms/modes specified in section 11(5). However, this condition is not applicable in respect of the following:-
(i) any assets which form part of the corpus of the fund, trust or institution or any university or other educational institution or any hospital or other medical institution as on the 1st day of June, 1973;
(ii) Equity shares of a public company, held by any university or other educational institution or any hospital or other medical institution where such equity shares form part of the corpus of any university or other educational institution or any hospital or other medical
institution as on the 1st day of June, 1998
(iii) Debentures of a company acquired by the fund, trust or institution or any university or other educational institution or any hospital or other medical institution before the 1st day of March, 1983;
(iv) any accretion to the shares, forming part of the corpus of the fund mentioned in point no.(i) and (ii), by way of bonus shares allotted to the fund, trust or institution or any university or other educational institution or any hospital or other medical institution;
(v) 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,s;

(6) Application out of corpus shall not be considered as an application for charitable or religious purposes. However, when it is invested or deposited back, into one or more of the forms or modes specified in Section 11(5) maintained specifically for such corpus
from the income of the previous year, such amount shall be allowed as an application in the previous year in which it is deposited back to the corpus to the extent of such deposit or investment.

(7) Application from loans and borrowings shall not be considered as an application for charitable or religious purposes. However, when loan or borrowing is repaid from the income of the previous year, such repayment shall be allowed as an application in the previous year in which it is repaid to the extent of such repayment.

(8) For claiming exemption under section 10(23C)(iv) and (v), the fund, trust or institution, as the case may be, should disinvest by March 30, 1993, all the investment made before April 1, 1989, otherwise than in any one or more of the forms or modes specified in section 11(5).

(9)For claiming exemption under section 10(23C)(vi) and (via), the university or other educational institution or any hospital or other medical institution, as the case may be, should disinvest by March 30, 2001, all the investment made before June 1, 1998, otherwise than in any one or more of the forms or modes specified in section 11(5).

(10)If taxable income [before giving exemption under section 10(23C)] exceeds the exemption limit, the institution should get books of account audited in Form No. 10BB and audit report should be furnished one month prior to the due date for furnishing the return of income.

Note:
(i) For the purpose of claiming exemption under section 10(23C), where any income is required to be applied or accumulated, then, for such purpose the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under this clause in the same or any other previous year.

(ii) If tax is deductible from any payment but it is not deducted and payment is made to a resident person, 30% of such payment will be disallowed. In other words, only 70% of an expense shall be deemed as application of income if tax is not deducted from such payment in accordance with Chapter XVII-B. The disallowance shall be made in
accordance with Section 40(a)(ia).

(iii) The Finance Act, 2018 has extended the provisions of Section 40A(3) and 40A(3A) mutatis mutandis to the institutions approved under section 10(23C)(iv)/(v)/(vi)/(via)]. Consequently, if payment for an expense exceeding Rs. 10,000 is made in any mode other than account payee cheque, bank draft, net banking (i.e., payment in cash or bearer cheque) that payment or expense will not be considered while computing the application of income.

(iv) Any donation given by a trust/institution [registered under section 12AA/12AB or referred to in section 10(23C)(iv)/(v)/(vi)/(via)] to any other trust [which is registered under section 12AA or referred to in section 10(23C)(iv)/(v)/(vi)/(via)] as contribution with specific direction that they shall form part of the corpus of the recipient trust/ institution, shall not be treated as an application of income.

(v) No set-off or deduction or allowance of any excess application, of any of the year preceding the previous year, shall be allowed during the previous year. Therefore, the charitable trusts shall not be permitted to carry forward the losses or excess application of
earlier years.
66Section 10(23D)Income earned via Mutual FundsAny income of following mutual funds is exempt from tax:
(i)A mutual fund registered under the Securities and Exchange Board of India Act or regulation made thereunder.
(ii)A mutual fund set-up by a public sector bank, or a public financial institution or authorised by RBI (subject to conditions notified by the Central Government).
67Section 10(23DA)jIncome earned via a Securitisation TrustAny income of a securitisation trust from the activity of securitisation is exempt from tax.
68Section 10(23EA)Income earned through an IPFAny income by way of contributions received from recognised stock exchanges and the members thereof, of a notified Investor Protection Fund (IPF) set up by recognised stock exchanges in India is exempt from tax.
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 recognized stock exchange, the whole of the amount so shared shall be deemed to be the income of the previous year in which such amount is so shared and shall accordingly be chargeable to income-tax
69Section 10(23EB)Income received by the Credit Guarantee Trust for Small IndustriesAny income of Credit Guarantee Fund Trust for Small Industries, being a trust created by the Government of India and the Small Industries Development Bank of India, is exempt from tax for 5 years relevant to the assessment years 2002-03 to 2006-07.
70Section 10(23EC)Income of the notified investor protection fund set-up by commodity exchangeAny income by way of contributions received from commodity exchanges and the members thereof, of a notified Investor Protection Fund set up by commodity exchanges in India is exempt from tax.
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 commodity exchange, the whole of the amount so shared shall be deemed to be the income of the previous year in which such amount is so shared and shall accordingly be chargeable to income-tax
71Section 10(23ED)Income of Investor Protection Fund set by a depositoryAny income, by way of contributions received from a depository, of notified Investor Protection Fund set up by a depository in accordance with the regulations made under the SEBI Act and
Depository Act is exempt from tax.
Provided that where any amount standing to the credit of the Fund and not charged to income-tax during any previous year is shared, either wholly or in part with a depository, the whole of the amount so shared shall be deemed to be the income of the previous year in which such amount is so shared and shall, accordingly, be chargeable to income-tax.
72Section 10(23EE)Income of Core Settlement Guarantee FundSection 10(23ED) grants exemption to Income of any specified income (income by way of contribution, penalty and investment) of such Core Settlement Guarantee Fund, set up by a recognised clearing corporation in accordance with the regulations, as the Central Government may, by notification in the Official Gazette, specify in this behalf
73Section 10(23FB)Income of a venture capital fund or a venture capital company from investment in a venture
capital undertaking
Income of a venture capital fund or a venture capital company from investment in a venture capital undertaking is exempt from tax from assessment year 2001-02.
These provisions shall not apply in respect of any income of a venture capital company or venture capital fund, being an investment fund specified in clause (a) of the Explanation 1 to section 115UB, of the previous year relevant to the assessment year beginning on or after the 1st day of April, 2016.
74Section 10(23FBA)Income of an investment fundAny income of an investment fund other than the income chargeable under the head “Profits and gains of business or profession” is exempt under Section 10(23FBA).
75Section 10(23FBB)Income referred to in section 115UB of a unit holder of an investment fundAny income referred to in section 115UB, accruing or arising to, or received by, a unit holder of an investment fund, being that proportion of income which is of the same nature as income
chargeable under the head “Profits and gains of business or profession” is exempt under section 10(23FBB).
76Section 10(23FBC)Income arising to unit holder from specified fundAny income accruing or arising to, or received by, a unit holder from a specified fund or on transfer of units in a specified fund in exempt from tax under section 10(23FBC)
77Section 10(23FC)Income of a of a Business TrustAny income of a business trust by way of:-
a) interest received or receivable from a special purpose vehicle; or
b) dividend received or receivable from a special purpose vehicle

is exempt u/s 10(23FC).
78Section 10(23FCA)Certain income of a business trust being a real estate investment trustAny income of a business trust, being a real estate investment trust, by way of renting or leasing or letting out any real estate asset owned directly by such business trust is exempt under section 10(23FCA).
79Section 10(23FD)Distributed Income of a Unit Holder from the Business TrustAny distributed income, referred to in section 115UA, received by a unit holder from the business trust, not being that proportion of the income which is of the same nature as the income referred to in sub-clause (a) of clause (23FC) or clause (23FCA) of section 10 is exempt from tax.
80Section 10(23FE)Income of specified person in nature of dividend, interest or long-term capital gains arising
from investment made in India
Any income of a specified person in the nature of dividend, interest or long-term capital gains arising from an investment made by it in India, whether in the form of debt or share capital or unit, is exempt under section 10(23FE).
81Section 10(23FF)Income in nature of capital gains earned by non-resident or specified fundAny income of the nature of capital gains, arising or received by a non-resident/specified fund, on account of transfer of share of a company resident in India, by the resultant fund or a specified fund to the extent attributable to units held by non-resident (not being a permanent establishment of a non-resident in India) shall be exempt from tax under section 10(23FF). However, the exemption shall be available if:-
1) such shares were transferred from the original fund to the resultant fund in relocation; and
2) capital gains on such shares were not chargeable to tax if that relocation had not taken place.
82Section 10(24)Income earned by authorised trade unionsAny income chargeable under the head “Income from house property” and “Income from other sources” of a registered union within the meaning of the Indian Trade Union Act, 1926, formed
primarily for the purpose of regulating the relation between workmen and employers or between workmen and workmen is exempt from tax. Similar exemption is available to an association of registered unions.
83Section 10(25)Income of provident fundFollowing income is exempt from tax under this section:-
(i) Interest on securities held by a statutory provident fund and any capital gains arising from such securities.
(ii) Any income received by the trustee on behalf of a recognised provident fund or an approved superannuation fund or an approved gratuity fund; and
(iii) Any income received by the Board of Trustees on behalf of Deposit-linked Insurance Fund.
84Section 10(25A)Income earned via Employee’s State Insurance FundAny income of the Employees’ State Insurance Fund of the Employees’ State Insurance Corporation set-up under the provisions of the Employees’ State Insurance Act, 1948 is exempt from tax under section 10(25A).
85Section 10(26), 10(26A)Income earned by Schedule Tribe MembersIncome of a member of a Scheduled Tribe [as per article 366(25) of the Constitution] is exempt from tax, if following conditions are satisfied:-
(i) Such member resides in any area in the State of Nagaland, Manipur, Tripura, Arunachal Pradesh, Mizoram or district of North Cachar Hills, Mikir Hills, Khasi Hills, Jaintia Hills and Garo Hills or in the Ladakh region of the State of Jammu and Kashmir.
(ii) Such exemption is available in respect of income which accrues / arises from any source in such areas or income by way of dividends/ interest on securities arises from any area.
86Section 10(26AAA)Income earned by an individual of Sikkimese originFollowing income of a Sikkimese individual [as explained in section 10(26AAA)], is exempt from tax:
(i) Any income from the State of Sikkim; or
(ii) Income by way of dividend or interest on securities. This exemption is not available to a Sikkimese woman who, on or after April 1,2008 marries a non- Sikkimese individual.
87Section 10(26AAB)Marketing regulation with regards to agricultural produceW.e.f 1st April 2008, any income of an Agricultural Produce Marketing
Committee/Board constituted under any law for the purpose of regulating the marketing of agricultural produce is exempt from tax under section 10(26AAB).
88Section 10(26B)Income earned by corporations established for the upliftment of backward tribes and classesAny income of a corporation established by a Central, State or Provincial Act or of any other body, institution or association (wholly financed by the Government), formed for promoting the interests of the members of the Scheduled Castes/Tribes/backward classes or of any two or all of them, is exempt from tax under section 10(26B).
89Section 10(26BB)Income earned by corporations established for the protection of Minority interestsAny income of a corporation established by the Central Government or State Government for promoting the interests of the members of such minority community as notified by the Central Government from time-to-time, is exempt from tax under section 10(26BB).
90Section 10(26BBB)Income earned by corporations established for former servicemenW.e.f FY 2003-04, any income of a statutory corporation established by Central, State or Provincial Act for the welfare and economic upliftment of ex-servicemen (being citizen of India) is exempt from tax under section 10(26BBB).
91Section 10(27)Income earned by cooperative societies established for protection of scheduled castes and tribes interestsAny income of a co-operative society formed for promoting the interests of the members of Scheduled Castes or Scheduled Tribes or both is exempt from tax.
92Section 10(29A)Income received by Community BoardsAny income of Coffee Board, Rubber Board, Tea Board, Tobacco Board, Marine Products Export Development Authority, Agricultural and Processed Food Products Export Development Authority, Spices Board and Coir Board, is exempt from tax under section 10(29A)
93Section 10(30)Income earned in the form of subsidies via the Tea BoardIn the case of a taxpayer, who carries on business of growing and manufacturing tea in India, the amount of any subsidy received from or through the Tea Board under the notified scheme for replantation or replacement of tea bushes or for rejuvenation or consolidation of the area used for cultivation of tea, is exempt from tax
94Section 10(31)Income earned in the form of subsidies via the concerned BoardTax exemption is available under section 10(31) in respect of subsidy received by an taxpayer engaged in the business of growing and manufacturing rubber, coffee, cardamom or such other commodities as the Central Government may by notification specify.
95Section 10(32)Income earned by a child in accordance with Section 64 of the Income Tax ActUnder section 64(1A) income of a minor child is clubbed along with the income of his/her parent, subject to certain conditions.. If the income of an individual includes any income of his/her minor child, then such individual can claim exemption (in respect of each minor child) of lower of following amount:
(a) Rs. 1,500 per minor child; or
(b) Amount of income of each minor child (which is clubbed).
96Section 10(33)Income earned through Unit Trust of India capital asset transferAs per section 10(33), long-term or short-term capital gains arising on transfer of units of Unit Scheme, 1964 are exempt from tax if the transfer of such asset takes place on or after 1/04/2002.
97Section 10(34)Income earned in the form of dividends through an Indian firmDividend (section 115-O)received from Indian company was exempt upto 31st March 2020. Exemption of Dividend is withdrawn w.e.f 1st April 2020. Hence for FY 2020-21 onwards, dividend is taxable as per applicable slab rate. and TDS is also applicable on deducted @10% if dividend is more than Rs. 5000/-.
98Section 10(34A)Income earned by a shareholder through the buyback of unlisted companiesAny income arising to an assessee, being a shareholder, on account of buy back of shares by the company (whether listed or unlisted) as referred to in section 115QA is exempt from tax under section 10(34A). This exemption is available only in those cases where additional income-tax is payable on distributed income under section 115QA by the company opting for buy back of such shares.
With effect from 05/07/2019, Section 115QA has been amended to levy additional tax on buy back of shares by listed companies as well. Consequently, Section 10(34A) has also been amended to exempt income arising in hands of shareholder on account of buy back of shares by listed companies.
99Section 10(35)Income received through the sale or transfer of Unit Trust of India units as well as other mutual fundsAny income arising in respect of the units of the specified mutual fund and units from the Administrator of the specified undertaking; or units from the specified company (as referred under section 2(h) of the Unit Trust of India (Transfer of the Undertaking and Repeal) Act, 2002) is exempt.

But Exemption under section 10(35) of the Income Tax Act is not be available to income arising in respect of units received on or after 1st April 2020.
100Section 10(35A)Income from a securitisation trust that is exemptAny distributed income referred to in section 115TA received from a securitization trust by any person being an investor of the said trust is exempt from tax under section 10(35A).This exemption is not available from 1st June 2016.
101Section 10(36)Income received on the sale of shares under specific conditionsLong term capital gains on transfer of equity shares (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) is exempt if the transfer took place after 1.3.2003 but before 1.3.2004 and transactions are entered into on a recognized stock exchange.
102Section 10(37)Any capital gains made on the mandatory acquirement of land in relation to urban agricultureAn individual or Hindu Undivided Family (HUF) can claim exemption in respect of capital gain arising on transfer by way of compulsory acquisition of agricultural land situated in an urban area provided compensation is received on or after April 1, 2004. This exemption is available if the land was used by the taxpayer (or by his parents in the case of an individual) for agricultural purpose for a period of 2 years immediately preceding the date of its transfer.
103Section 10(37A)Capital gain on transfer of specified capital assets under land pooling scheme of the Andhra
Pradesh Government
Section 10(37A) (as inserted by the Finance Act, 2017 w.e.f. 1-4-2015) provides exemption in respect of capital gain arising on transfer of specified capital asset by an Individual or HUF
under the land pooling scheme of the Andhra Pradesh Government.
104Section 10(38)Any long term capital gains made from share and security transfers that fall under the purview of Security Transaction TaxTaxability of Long term capital gain(LTCG)
UPTO 31st March 2018, Long-term capital gains arising on transfer of securities are not chargeable to tax in the hands of any person, if following conditions are satisfied:-
(i) The asset transferred should be equity shares of a company or units of an equity oriented mutual fund or a unit of a business trust.
(ii) The transaction should be liable to securities transaction tax, at the time of transfer.
(iii) Such asset should be a long-term capital asset.
(iv) Transfer should have taken place on or after October 1, 2004

W.E.F 1st April 2018 (FY 2018-19 onwards), No exemption under section 10(38) is available and The long-term capital gains arising from sale of listed securities in excess of Rs. 1 lakh is taxable at the rate of 10% under Section 112A.
105Section 10(39)Any income received from any international event or function relating to sportsFrom the assessment year 2006-07, any specified income of notified person, arising from an international sporting event held in India is exempt from tax, if the event is approved by the international body and is notified by the Central Government and has participation by more than two countries.
106Section 10(40)Any income acquired in the form of a grant from a company deemed to be a subsidiary of the parent companyIncome of any subsidiary company by way of grant or otherwise received from its Indian holding company which is engaged in the business of generation/ transmission/distribution of power is exempt, if such receipt is for settlement of dues in connection with reconstruction or revival of an existing business of power generation. The exemption is available, if the reconstruction or revival is by way of transfer of business to the Indian company notified under section 80
IA(4)(v)(a).
107Section 10(41)Any income received on any asset transfer of a company or project that conducts power distribution, generation and transmissionUnder section 10(41), any capital gain arising in above section 10(40) is not chargeable to tax, if the transfer has taken place before April 1, 2006.
108Section 10(42)Any income earned by any authority that has been established by more than one countryAny specified income of non-profit body/authority notified by the Central Government and established, constituted or appointed under a multilateral treaty agreement or convention to which Central Government is a signatory is exempt from tax under section 10(42).
109Section 10(43)Any income in relation to reversal of mortgageAny amount received by an individual as a loan (either in lump sum or in instalments) in a transaction of reverse mortgage referred to in section 47(xvi), is not chargeable to tax.
110Section 10(44)Income generated through the NPS TrustWith effect from assessment year 2009-10, any income received by any person for, or on behalf of the New Pension System Trust established on 27-2-2008 under the provisions of the Indian
Trust Act, 1882 will be exempt from tax.
111Section 10(45)Any allowance or perks granted to the chairman or any member of the UPSCAny allowance or perks granted to the chairman or any member of the UPSC was exempted upto FY 2020-21. But this exemption is withdrawn by budget 2020 but w.e.f. 1st April 2021.
112Section 10(46)Any income that comes under the category of ‘specified income’ with regards to specific authoritative bodiesUnder section 10(46), any specified income arising to any notified body/authority/Board/Trust/Commission (or a class thereof) which has been established or constituted by or under a Central, State or Provincial Act, or has been constituted by the Government or a State
Government with the object of regulating or administering any activity for the benefit of the general public and is not engaged in any commercial activity and is notified by the Central Government in the Official Gazette for the purposes of this clause is exempt from tax
113Section 10(47)Any income that is exempt under the category of infrastructure debt fundAs per section 10(47), any income of a notified infrastructure debt fund set-up in accordance with the guidelines prescribed in Rule 2F of the Income-tax Rules is exempt from tax.
114Section 10(48)Any income earned by a foreign firm or company due to crude oil sales within IndiaAny income received in India in Indian currency by a foreign company on account of sale of crude oil, any other notified goods or rendering of notified services to any person in India is
exempt from tax provided-
(i) receipt of such income in India by the foreign company is pursuant to an agreement or an arrangement entered into by the Central Government or approved by the Central Government;
(ii) having regard to the national interest, the foreign company and the agreement or arrangement are notified by the Central Government in this behalf; and
(iii) the foreign company is not engaged in any activity, other than receipt of such income, in India.
115Section 10(48A)Any income of a foreign company on account of storage and sale of crude oilAny income arising to a foreign company through storage of crude oil in a facility in India and sale therefrom to any person resident in India is exempt from tax provided that–
a) the storage and sale by the foreign company is pursuant to an agreement or an arrangement entered into by the CG.
b) having regard to the national interest, the foreign company and the agreement or arrangement are notified by the CG.
116Section 10(48B)Any income of a foreign company on account of sale of leftover stock of crude oilSection 10(48B) provides that any income accruing or arising to a foreign company on account of sale of leftover stock of crude oil, if any, from a facility in India after the expiry of an agreement or an arrangement or on termination of said agreement in accordance with the terms mentioned therein shall be exempt subject to such conditions as may be notified by the Central Government in this behalf.
117Section 10(48D)Exemption to Financial InstitutionSection 10(48D) provides exemption for any income accruing or arising to an institution established for financing the infrastructure and development. The exemption shall be available for a period of 10 consecutive assessment years beginning from the assessment year relevant to the previous year in which such institution is set up.
118Section 10(48E)Income of DFI (development financial institution)Section 10(48E) provides exemption to any income accruing or arising to a DFI licensed by the Reserve Bank of India. The exemption shall be available for 5 consecutive assessment years
beginning from the assessment year relevant to the previous year in which the DFI is set up. However, the Central Government may extend the period of exemption of 5 years for a further period, not exceeding 5 more consecutive assessment years, subject to fulfilment of such conditions as may be specified.
119Section 10(49)Any income earned by the NFHC (National Finance Holdings Company)As per section 10(49), any income of the National Financial Holdings Company Limited, being a company set-up by the Central Government, of any year relevant to any assessment year
commencing on or before the 1st day of April, 2014 is exempt from tax.
120Section 10(50)Income subject to equalisation levyAny income arising from specified services or arising from an e-commerce supply or services made or provided or facilitated on or after 01-04-2020, which is chargeable to equalisation levy
is exempt from tax
121Section 10A Income of newly established undertakingsSection 10A provides for exemption in respect of income of newly established undertakings in free trade zone or electronic hardware technology park or electronic software technology park.
122Section 10AA Income of newly established units in SEZSection 10AA provides for exemption in respect of income of newly established units in Special Economic Zones
123Section 11 Income of a public charitable trust.Section 11 provides exemption in respect of income of a public charitable trust.
124Section 12Income of a public religious trust.Section 12 provides exemption in respect of income of a public religious trust.
125Section 13AIncome of a political party.Section 13A provides exemption in respect of income of a political party.
126Section 13AIncome of an electoral trustSection 13B provides exemption in respect of income of an electoral trust
127Section 54Long Term capital gain(LTCG) on sale of Residential house property.Conditions for exemption of long terms capital gain u/s 54.;
(1) This exemption is limited to long term capital gain on transfer of residential house property.

(2) This exemption is available only to Individual or HUF.

(3) For exemption of long term capital gain, assesse will have to purchase / construct another residential house. (From AY 2015-16, only one residential house can be purchased or constructed. w.e.f. AY 21-22, one residential house if capital gain is less than or equal to 2 crores. The option of two residential house can be availed only once by an assessee.)

(4) The time limit for purchase of residential house is one year before or within 2 year of transfer of old residential house. For construction the time limit is 3 year from the date of transfer.

(5) The exemption is limited to least of LTCG or cost of new assets.

(6) For availing exemption, sum can be deposited in capital gain account scheme (CGAS) before due date for furnishing income tax return. But if this amount is not used for intended purchase within the given period then the amount not so utilized shall be treated as long term capital gain of the previous year in which the allowed period expires.

(7) If new asset is sold within 3 years, amount earlier exempted under this section will be reduced from its COA(cost of acquisition) to calculate capital gains thereon.
128Section 54BLong Term capital gain(LTCG) on transfer of land used for Agriculture purpose.Conditions for exemption of long terms capital gain u/s 54B;
(1) This exemption is limited to long term capital gain on transfer of land used for agriculture purpose.

(2) This exemption is available only to Individual or HUF.

(3) For exemption of long term capital gain, assesse will have to purchase another land for agriculture purpose.

(4) The time limit for purchase of another land for agriculture purpose is within 2 years of transfer of earlier land.

(5) The exemption is limited to least of LTCG or cost of new assets.

(6) For availing exemption, sum can be deposited in capital gain account scheme (CGAS) before due date for furnishing income tax return. But if this amount is not used for intended purchase within the given period then the amount not so utilized shall be treated as long term capital gain of the previous year in which the allowed period expires.

(7) If new asset is sold within 3 years, amount earlier exempted under this section will be will be reduced from its COA(cost of acquisition) to calculate capital gains thereon
129Section 54DLong Term capital gain(LTCG) on Compulsory acquisition of land and building used in an industrial undertakingConditions for exemption of long terms capital gain u/s 54D;
(1) This exemption is limited to long term capital gain on transfer of Land or building forming part of an industrial undertaking used for the same in the past 2 years prior to transfer.

(2) This exemption is available to all the assessees.

(3) For exemption of long term capital gain, assesse will have to purchase another Land or building for shifting or re-establishing the industrial undertaking.

(4) The time limit for purchase of another assets is within 3 years from the transfer of earlier assets.

(5) The exemption is limited to least of LTCG or cost of new assets.

(6) For availing exemption, sum can be deposited in capital gain account scheme (CGAS) before due date for furnishing income tax return. But if this amount is not used for intended purchase within the given period then the amount not so utilized shall be treated as long term capital gain of the previous year in which the allowed period expires.

(7) If new asset is sold within 3 years, amount earlier exempted under this section will be will be reduced from its COA(cost of acquisition) to calculate capital gains thereon.
130Section 54E / 54EA /
54EB
Long terms Capital gain (LTCG) on investment in Specified securities.Conditions for exemption of Long terms capital gain u/s 54E, 54EA & 54EB;
(1) This exemption is limited to long term capital gain on transfer of any long term capital assets.

(2) This exemption is available to all the assessees.

(3) For exemption of long term capital gain, assesse will have to purchase specified securities including government securities, savings certificates, units of UTI, specified debentures, etc

(4) The time limit for purchase of another assets is within 6 months from the transfer of earlier assets.

(5) The exemption is calculated proportionately as – Cost of new asset x Capital Gain / Net consideration. The maximum exemption is limited to the amount of capital gain.

(6) CGAS (capital gain account scheme) is not available under this section.

(7) If new asset is sold within 3 years, amount earlier exempted under this section will be will be reduced from its COA(cost of acquisition) to calculate capital gains thereon.

 (8) If a loan is taken on the security of the new specified asset within 3 years, the same will be treated as capital gains.
131Section 54ECLong term capital gain (LTCG) on transfer of land or building or both on investment in certain bonds. Conditions for exemption of long terms capital gain u/s 54EC;
(1) This exemption is limited to long term capital gain on transfer of Land or building or both.

(2) This exemption is available to all the assessees.

(3) For exemption of long term capital gain, assesse will have to purchase NHAI bonds or REC bonds, redeemable after 5 years.

(4) The time limit for purchase of another assets is within 6 months from the date of transfer.

(5) The exemption is limited to least of LTCG or cost of new assets.

(6) CGAS (capital gain account scheme) is not available under this section.

(7) If new asset is sold within 5 years (3 years upto F.Y. 2017-18), amount earlier exempted under this section will be reduced from its COA (cost of acquisition) to calculate capital gains thereon.

(8) If a loan is taken on the security of the new specified asset within 5 years, the same will be treated as capital gains.

(9) Investment in specified bonds should not exceed Rs. 50 lakhs during the current coming years.
132Section 54EELong term capital gain (LTCG) on Investment in units of a specified fundConditions for exemption of long terms capital gain u/s 54EE;
(1) This exemption is limited to long term capital gain on transfer of a long term capital assets.

(2) This exemption is available to all the assessees.

(3) For exemption of long term capital gain, assesse will have to purchase units notified by Central Government.

(4) The time limit for purchase of another assets is within 6 months from the date of transfer.

(5) The exemption is calculated proportionately as – Cost of new asset x Capital Gain / Net consideration. The maximum exemption is limited to the amount of capital gain.

(6) CGAS (capital gain account scheme) is not available under this section.

(7) If new asset is sold within 3 years, amount earlier exempted under this section will be reduced from its COA (cost of acquisition) to calculate capital gains thereon.

(8) If a loan is taken on the security of the new specified asset within 3 years, the same will be treated as capital gains.

(9) Investment in specified bonds should not exceed Rs. 50 lakhs during the current coming
133Section 54FLong term capital gain (LTCG) from assets other than residential house property on investment in residential House property.Conditions for exemption of long terms capital gain u/s 54F.;
(1) This exemption is limited to long term capital gain on transfer of any long term capital assets other than residential house property.

(2) This exemption is available only to Individual or HUF.

(3) For exemption of long term capital gain, assesse will have to purchase / construct another residential house. The Individual/HUF cannot own more than 2 house properties (i.e., existing House property and new house property). If another house property is purchased, amount of exemption allowed earlier will be chargeable as capital gains.

(4) The time limit for purchase of residential house is one year before or within 2 year of transfer of old residential house. For construction the time limit is 3 year from the date of transfer.

(5) The exemption is calculated proportionately as – Cost of new asset x Capital Gain / Net consideration. The maximum exemption is limited to the amount of capital gain.

(6) For availing exemption, sum can be deposited in capital gain account scheme (CGAS) before due date for furnishing income tax return. But if this amount is not used for intended purchase within the given period then the amount not so utilized shall be treated as long term capital gain of the previous year in which the allowed period expires.

(7) If new asset is sold within 3 years, amount earlier exempted under this section will be reduced from its COA(cost of acquisition) to calculate capital gains thereon.
134Section 54G / 54GACapital gain on shifting of industrial undertaking from urban area to rural area / SEZConditions for exemption of Capital Gain u/s 54G and 54GA.;
(1) This exemption is limited to Capital Gain (STCG or LTCG) on Shifting of industrial undertaking (Capital asset being plant, machinery, land, building or rights in land or building that is used in an industrial undertaking situated in an urban area) from urban area to rural area (section 54G)/ SEZ (Section 54GA).

(2) This exemption is available to all the assessees.

(3) For exemption of long term capital gain, assesse will have to shift industrial undertaking from urban area to rural area / SEZ. Shifting of industrial undertaking involves purchase of new plant/machinery, acquisition of land or construction of a building, shifted old asset and transferred undertaking to a new area and incurring specified expenses.

(4) The time limit for investment in new assets is one year before or within 3 years of transfer of old assets.

(5) The exemption is limited to least of capital gain or cost of new assets.

(6) For availing exemption, sum can be deposited in capital gain account scheme (CGAS) before due date for furnishing income tax return. But if this amount is not used for intended purchase within the given period then the amount not so utilized shall be treated as long term capital gain of the previous year in which the allowed period expires.

(7) If new asset is sold within 3 years, amount earlier exempted under this section will be reduced from its COA(cost of acquisition) to calculate capital gains thereon.
135Section 54GBLong term capital gain(LTCG) on transfer of residential property by the eligible assesseeConditions for exemption of long terms capital gain u/s 54GB.;
(1) This exemption is limited to long term capital gain on transfer of residential property i.e. house or plot of land.

(2) This exemption is available only to Individual or HUF.

(3) For exemption of long term capital gain, assesse will have to purchase Equity shares in an eligible company as stated below:-
(a)  Newly incorporated
(b)  Engaged in the business of manufacture or eligible business
(c) Assessee has >50% share / voting rights
(d) Small or Medium enterprise under MSMEA, 2006 or is an eligible startup

(4) The time limit for purchase of new assets is before due date for filing income tax return. AND Eligible company to utilize subscription money for the purchase of new plant and machinery subject to certain conditions within 1 year. If not, such unutilized amount shall be chargeable to tax as capital gains.

(5) The exemption is limited to least of LTCG or cost of new assets.

(6) For availing exemption, sum can be deposited by the eligible company in capital gain account scheme (CGAS) before due date for furnishing income tax return. But if this amount is not used for intended purchase within the given period then the amount not so utilized shall be treated as long term capital gain of the previous year in which the allowed period expires.

(7) If new asset is sold within 5 years, amount earlier exempted under this section will be reduced from its COA(cost of acquisition) to calculate capital gains thereon.
136Basic Exemption limitThis is exemption limit of income which is available to Individuals, HUF, AOP, BOI, AJP & Trust. Tax rate on this limit of income is zero. Basic exemption limit for individual (before 60 years of age), HUF, AOP, BOI, AJP & Trust is Rs. 250000/-. Basic exemption limit for senior citizen before 80 years of age is Rs. 300000/- and for those with age 80 years or above is Rs. 500000/-. Basic exemption limit is not available to Firms, companies and co-operative societies.



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