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Section
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Type of assessee
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Type of income
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Exempt amount
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Remarks
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10(1)
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All assessees
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Agricultural income.
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No limit
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See definition – S. 2(1A). Income derived from any land or building for any purpose other than agriculture would be taxable.
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10(2)
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Member of HUF
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Sum paid out of income of family or income of impartible estate.
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No limit
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Subject to the provision of S. 64(2).
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10(2A)
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A person being a partner of a firm
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Share in the total income of the firm separately assessed as a firm.
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No limit
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For share of the partner see Explanation to this sub-section.
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10(4)(i)
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Non-resident
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Interest on specified securities or bonds.
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No limit
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No securities or bonds to be specified on or after 1-6-2002. For specified securities see Notification No. SO-3331, dated 19-10-1965.
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10(4)(ii)
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Individual, being resident outside India under FEMA permitted by RBI to maintain NRE account
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Interest from NRE account.
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No limit
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The exemption which was withdrawn from 1st April, 2005 has been restored.
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10(4B)
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Non-resident being a citizen of India or a person of Indian origin
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Interest on specified saving certificate issued before 1-6-2002 subscribed in foreign currency.
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No limit
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—
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10(7)
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Citizen of India
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Allowances or perquisites by Government for services rendered outside India.
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No limit
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—
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10(10BC)
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Individual or his legal heir
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Compensation from Central Government, State Government or Local authorities on account of any disaster.
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No limit
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Exemption not allowed on the amount allowed as deduction under any other section under the Income-tax Act on account of loss or damage caused by such disaster.
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10(10D)
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All assessees
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Any sum received under a life insurance policy including bonus.
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No limit
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The following amount shall not be exempt :
- Amount received from an insurance company on death of dependent being a person with disability in respect of an insurance policy issued to him for the maintenance of such dependent.
- Amount received under a Keyman Insurance Policy (For definition of “Keyman Insurance Policy” refer to Explanation to this sub-section.)
- Sum received under an insurance policy issued on or after 1-4-2003, where premium payable for any of the years exceeds 20% of the actual capital sum assured unless such sum is received on death of a person.
- Sum received under an insurance policy issued on or after 1-4-2012, where premium payable for any of the years exceeds 10% of the actual capital sum assured unless such sum is received on death of a person.
- Sum received by a person with a disability or severe disability as referred to section 80U under an insurance policy issued on or after 1-4-2013, where premium payable for any of the years exceeds 15% of the actual capital sum assured, unless such sum is received on death of a person.
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10(11)
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All assessees
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Payments from a statutory P.F. or public P.F. or from notified P.F.
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No limit
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For notified P.F., refer Notification No. SO-2430 dated 2-7-1968.
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10(11A)
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Individual (w.e.f. A.Y. 2015-16)
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Payment from an account opened under Sukanya Samriddhi Account Scheme
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No limit
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The Explanatory Memorandum to the Finance Bill clarifies that interest accruing in such account is exempt from tax.
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10(12)
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Salaried employee
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Accumulated balances due from recognised Provident Fund.
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Full amount of accumulated balance
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Employee has put in 5 or more years of service or termination of service is due to his ill health or closure of employers business or the balance from recognised P.F. is transferred to another recognised fund.
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10(13)
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Salaried employee
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Payment from approved superannuation.
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Full amount
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Payment is on death or on retirement after specified fund, age or his becoming incapacitated prior to such retirement.
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10(15)(i)
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All assessees
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Income by way of interest, premium on redemption or other payment from notified securities, bonds, certificates, etc. issued and notified by Central Government.
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Limits as specified in the Notification
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—
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10(15)(iib)
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Individual or HUF
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Interest on notified capital investment bonds.
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No limit
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No bonds to be specified on or after 1-6-2002.
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10(15)(iic)
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Individual or HUF
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Interest on notified Relief Bonds.
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No limit
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—
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10(15)(iid)
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Individual who is NRI at the time of acquisition of the bonds or his successor or the donee
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Interest on notified Bonds being NRI Bonds, 1988, NRI Bonds (second series) issued by SBI.
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No limit
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No exemption available in the year of premature encashment. No bonds to be specified on or after 1-6-2002.
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10(15)(iv)(c)
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Non-resident
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Interest payable by industrial undertaking on money borrowed or debt incurred prior to 1-6-2001 in foreign country in respect of purchase of raw materials, components or plant and machinery and approved by Central Government including usance interest payable outside India by an undertaking engaged in the business of ship breaking in respect of purchase of a ship from outside India.
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No limit
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—
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10(15)(iv)(fa)
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NR or NOR
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Interest paid by a scheduled bank on RBI approved foreign currency deposits, FCNR and RFC accounts.
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No limit
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The exemption which was withdrawn from 1-4-2005 has been restored.
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10(15)(vi)
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All assessees
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Interest on Gold Deposit Bond Scheme, 1999.
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No limit
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—
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10(15)(vii)
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All assessees
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Interest on notified bonds issued by a local authority or by a State Pooled Finance Entity.
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No limit
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Ahmedabad notified vide 812(E) dt. 21-8-2001, 364(E) dt. 16-3-2004, 407(E) dt. 24-3-2005, and 333(E) dt. 8-3-2007, Hyderabad notified vide 275(E) dt. 4-3-2002, and 1482(E) dt. 29-12-2003, Nashik notified vide 269(E) dt. 7-3-2003. Tamil Nadu notified vide 545(E) dt. 12-5-2003, Chennai notified vide 392(E) dt. 23-3-2004, 402(E) dt. 23-3-2005 and 408(E) dt. 24-3-2005, Karnataka notified vide 941(E), dt. 20-8-2004, and 729 (E) dt. 27-5-2005, Visakhapatnam notified vide 1481(E) dt. 29-12-2003, Nagpur notified vide 10(E) dt. 4-1-2007
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10(15)(viii)
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NR or NOR
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Interest on deposit made on or after 1-4-2005 in an offshore banking unit referred to in Special Economic Zones Act, 2005.
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—
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—
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10(16)
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Individual
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Scholarship granted to meet cost of education.
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No limit
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—
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10(17A)
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All assessees
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Payment in cash/kind as award instituted by Central/State Government or award instituted by the Central Government approved body.
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No limit
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—
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10(18)
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Central or State Government employee
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Pension.
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No limit
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Such employee is awarded Param Vir Chakra or Maha Vir Chakra or Vir Chakra or such other notified gallantry award.
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Any family member of an employee referred above
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Family Pension.
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No limit
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—
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10(19)
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Widow, children or nominated heir of a member of the armed forces (including paramilitary forces) of the Union
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Family Pension.
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No limit
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Where the death of such member of the armed forces has occurred in the course of operational duties, in such circumstances and subject to such conditions as may be prescribed.
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10 (23AAA)
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Any person on behalf of employees welfare fund
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Any income.
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No limit
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- Fund is approved by CIT.
- The income is applied or accumulated for application
towards objects of the fund only.
- The funds are invested as permitted u/s. 11(5).
- The approval shall have effect for 3 years at a time.
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10(23C)(iiiaa)
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Swachh Bharat Kosh set up by Central Government
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Any income.
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No limit
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__
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10(23C)(iiiaaa)
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Clean Ganga Fund set up by Central Government
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Any income.
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No limit
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__
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10 (23DA)
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Securitisation Trust
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Any income from the activity of securitisation.
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No limit
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__
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10(23ED)
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Investor Protection Fund set up by depository
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Contribution received from the depository
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No limit
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Exemption not available in respect of amount of contribution not charged to tax during any previous year and shared with the depository.
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10(23F)
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Approved Venture Capital Fund or Venture Capital Company
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Dividend and LTCG in respect of equity shares of a Venture Capital Undertaking.
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No limit
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It shall not apply to investment made after 31-3-1999.
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10(23FA)
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Same as per S. 10(23F)
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Dividend other than referred in Section 115-O and LTCG in respect of equity shares of a venture capital undertaking.
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No limit
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- Approved by Central Government.
- It shall not apply to investment made after 31-3-2000.
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10(23FB)
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Venture Capital Fund (VCF) or Venture Capital Company (VCC) set up to raise funds for Venture Capital Undertaking (VCU)
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Income from investment in VCU.
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No limit
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- VCF/VCC granted registration under SEBI Act.
- VCF/VCC granted registration as category 1 Alternative investment fund with effect from A.Y. 2013-14
- VCF is operating under a registered trust deed or operating as venture capital scheme of UTI.
- VCF/VCC fulfils conditions specified by SEBI.
- VCU must be referred to in SEBI (VCF) Regulations, 1996 and notified by CBDT.
- VCU must be engaged in specified businesses or industries. This condition is no longer applicable w.e.f. A.Y. 2013-14.
- VCU must be domestic company, whose shares are not listed on recognised stock exchange in India.
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10(23FBA)
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Investment Fund regulated under SEBI (AIF) Regulations
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Any income other than income chargeable under the head ‘Profits and gains of business or profession’
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No limit
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—
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10(23FBB)
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Unit holder of an Investment Fund
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Income distributed by an Investment Fund which is taxed as business income in the hands of the Investment Fund
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No limit
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—
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10(23FC)
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Business Trust
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Interest received or Receivable from Special Purpose Vehicle (SPV)
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No limit
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SPV is defined to mean an Indian company in which Business Trust holds controlling interest and any specific percentage of shareholding or interest as may be required.
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10(23FCA)
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Income of a Real Estate Investment Trust
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Income from renting, leasing or letting out any real estate asset owned by such trust.
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No limit
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Real Estate Asset will have same meaning as defined in Regulation 2(1)(zj) of SEBI (Real Estate Investment Trusts) Regulation, 2014
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10(23FD)
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Unit holders of a Business Trust
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Any income distribued as referred to in section 115UA
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No limit
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Does not include that proportion of income as referred to in clause 10(23FC)
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10(32)
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Individual — Parent
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All income of a minor child which is clubbed.
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Up to ₹ 1,500 per minor child
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—
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10(33)
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All assessees
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Capital Gains arising on transfer of Unit 64 on or after 1-4-2002.
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No limit
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—
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10(34)
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All assessees
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Dividends referred to in sec. 115-O.
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No limit
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—
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10(34A)
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All assessees
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Amount received on buy back of unlisted shares referred to in section 115QA
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No limit
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Exemption applies to buy-backs offered after 1-6-2013
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10(35)
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All assessees
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- Income in respect of Units of UTI.
- Income in respect of Units of UTI units or Mutual Fund specified u/s. 10(23D).
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No limit
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Does not apply to income arising from transfer of units.
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10(35A)
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All assessees
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Income distributed by a securitisation trust referred to in section 115TA.
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No limit
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—
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10(36)
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All assessees
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LTCG on transfer of equity shares purchased between 1-3-2003 and 1-3-2004.
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No limit
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- Such equity shares should be of a company which is part of BSE-500 Index as on 1-3-2003 or where shares are allotted through public issue after 1-3-2003 and listed on a recognised stock exchange in India before 1-3-2004.
- Transactions of purchase/sale are entered through recognised stock exchanges in India.
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10(37) (w.e.f. A.Y. 2005-06)
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Individual or HUF
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Capital gains arising from transfer by way of compulsory acquisition under any law of the agricultural land in urban area referred to in s. 2(14)(iii)(a) or (b) for which is determined or approved by the Central Govt. or the RBI.
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No limit
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- Land should have been used for agricultural purposes by the individual or his parent or the HUF for at least last 2 years immediately preceding the date of transfer.
- Exemption applies to compensation/ consideration/ additional compensation received on or after 1-4-2004.
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10(38) (w.e.f. 1-10-2004)
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All assessees
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LTCG on transfer of equity share in company or a unit of an equity oriented fund or a unit of a business trust where such transaction of sale is entered into on or after 1-10-2004 and is subjected to Securities Transaction Tax (STT).
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No limit
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- For transactions subjected to STT (see page ..... for STT). For definition of equity oriented fund, please refer Explanation to clause (38).
- LTCG of a company is however includible in computing book profits u/s. 115JB from A.Y. 2007-08.
- Exemption not available in respect of income arising rom transfer of unit of business trust, which were acquired in consideration of a transfer referred to in section 47(xvii)
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10(45)
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Chairman or serving/retired member of UPSC
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Notified allowances and perquisites
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No limit
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Exemption is available from A.Y. 2008-09.
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10(46)
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Notified body authority board, Trust or Commission which is established by a Central/State on provincial Act or by Central or State Government
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Specified income
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Specified Income
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- The entity has object of regulating or administering any activity for the benefit of the general public. 2. The entity does not engage in any commercial activity.
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10(47)
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Infrastructure Debt fund set up in accordance with prescribed guidelines
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Any Income.
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No limit
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The fund has to file its return of income.
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10A
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Industrial undertaking in 1. Free Trade Zone (FTZ) 2. Electronic Hardware Technology Park (EHTP) or Software Technology Park (STP) w.e.f. A.Y. 1994-95 3. Special Economic Zone (SEZ) w.e.f. A.Y. 2001-02
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W.e.f. A.Y. 2000-01 income for 10 years from the year of Commercial Production. W.e.f. A.Y. 2000-01 income for 10 years from the year of Commercial Production. W.e.f. A.Y. 2001-02, income from exports eligible for deduction for 10 years from the year of Commercial Production
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100% (90% for A.Y. 2003-04) of the profits from export computed as profits of the business in proportion to export turnover to total turnover 100% (90% for A.Y. 2003-04) of the profits from export computed as profits of the business in proportion to export turnover to total turnover Undertakings in SEZ which begins to manufacture or produce on or after 1-4-2003, exempt amount would be 100% of profits from export for first 5 assessment years, 50% for next two assessment years and for subsequent three assessment years, amount transferred to Special Economic Zone Reinvestment Allowance Reserve Account not exceeding 50% of such profit
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- Not formed by splitting up or reconstruction of existing business or by transferring used plant and machinery.
- Manufactures/produces articles or things (including computer software) and cutting and polishing of precious and semi-precious stones
- No deduction u/s. 80-IA, u/s. 80-IB, u/s. 80HH, and u/s. 80HHA in relation to the profits and gains of the industrial undertaking.
- FTZ/EHTP/STP/SEZ to be notified by Central Government.
- Deduction shall be allowed only up to A.Y. 2011-12. However, for SEZ unit this limitation does not apply.
- Report of a Chartered Accountant certifying deduction to be furnished.
- Profit from domestic sales up to 25% of total sales would be deemed to be profits from exports only for the A.Y. 2001-02.
- Availing the concession is at the option of the assessee.
- Profits from onsite development of computer software outside India would be deemed to be profits from export.
- In the event of transfer of undertaking under amalgamation or demerger, the deduction shall continue to be allowed to the amalgamated or the resulting company.
- No deduction shall be admissible to amalgamating or demerged company in the year of amalgamation or demerger.
- Deduction not allowable if return not filed by due date u/s. 139(1).
- Does not apply to any undertaking being unit referred to in sec. 2(zc) of the SEZ Act, 2005, which begins to manufacture or produce articles or things or computer software after 1-4-2005 in any SEZ.
- The amount transferred to Reserve Account should be utilised for purposes specified in sub-section (1B).
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10AA
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Undetaking set up in Special Economic Zone w.e.f. A.Y. 2006-07
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W.e.f. A.Y. 2006-07 income from export eligible for deduction starting from the year of commercial production.
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100% of profit from export for first 5 A.Ys., 50% for next 5 A.Ys., & for subsequent 5 A.Ys. amount trfd. to SEZ Reinvestment reserve A/c not exceeding 50% of such profit. Profits from export computed as profits of the undertaking in proportion to export turnover to total turnover of the undertaking
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- Not formed by splitting up or reconstruction of existing business or by transferring used plant and machinery.
- In the event of transfer of undertaking under amalgamation or demerger, the deduction shall continue to be allowed to the amalgamated or the resulting company
- No deduction shall be admissible to amalgamating or demerged company in the year of amalgamation or demerger.
- Report of a Chartered Accountant certifying deduction to be furnished.
- The amount transferred to Reserve Account should be utilised for purposes specified in sub-section (2).
- Assessee engaged in ‘specified business’ as specified in section 35AD of the Act, to choose between deduction under section 10AA and section 35AD.
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10B
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Undertaking approved as a 100% Export oriented Undertaking under section 14 of IDRA (100% EOU)
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Same as Industrial undertaking in Free Trade Zone
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Same as Industrial undertaking in Free Trade Zone
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Same as 10A above, except No. 4.
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10BA
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Undertaking manufacturing or producing “eligible articles or things”; i.e., all hand-made articles or things, which are of artistic value and which requires the use of wood as the main raw material
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W.e.f. A. Y. 2004-05 income derived from export out of India of “eligible articles or things” up to A. Y. 2009-10.
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Profits from export computed as profits of the business in proportion to export turnover to total turnover
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- Undertaking which has claimed deduction u/s 10A or 10B for any assessment year shall not be entitled to this deduction.
- Manufactures eligible articles or things without the use of imported raw materials. It employs 20 or more workers.
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Not formed by splitting up or reconstruction of the existing business or by transferring used plant and machinery.
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90% or more of its sales during the relevant previous year are by way of the exports of the eligible articles or things.
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Report of a Chartered Accountant certifying deduction to be furnished. No other deduction allowed under any other section in respect of the eligible export profit.
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10C
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Industrial undertaking in any Integrated Infrastructure Development Centre or Industrial Growth Centre in North-Eastern region
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Income of ten consecutive A.Ys. from the year of production up to A.Y. 2003-04.
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No limit
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- Manufactures or produces any article or thing on or after 1-4-1998.
- Not formed by splitting up or reconstruction of the existing business or by transferring used plant and machinery.
- No deduction u/ss. 80HH, 80HHA, 80-I, 80-IA, 80-IB or 80JJA in relation to profits and gains of the industrial undertaking.
- No deduction is allowed if return not filed by due date prescribed u/s. 139(1).
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