23 August 2010
Section Nature of Income Exemption limit, if any 10(1) Agricultural income 10(2) Share from income of HUF 10(2A) Share of profit from firm 10(3) Casual and non-recurring receipts Winnings from races Rs. 2500/- other receipts Rs. 5000/- 10(10D) Receipts from life Insurance Policy 10(16) Scholarships to meet cost of education 10(17) Allowances of MP and MLA. For MLA not exceeding Rs. 600/- per month 10(17A) Awards and rewards (i) from awards by Central/State Government (ii) from approved awards by others (iii) Approved rewards from Central & State Governments 10(26) Income of Members of scheduled tribes residing in certain areas in North Eastern States or in the Ladakh region. Only on income arising in those areas or interest on securities or dividends 10(26A) Income of resident of Ladakh On income arising in Ladakh or outside India 10(30) (i) Subsidy from Tea Board under approved scheme of replantation 10(31) (ii) Subsidy from concerned Board under approved Scheme of replantation 10(32) Minor’s income clubbed with individual Upto Rs. 1,500/- 10(33) Dividend from Indian Companies, Income from units of Unit Trust of India and Mutual Funds, and income from Venture Capital Company/fund. 10(A) Profit of newly established undertaking in free trade zones electronic hardware technology park on software technology park for 10 years (net beyond 10 year from 2000-01) 10(B) Profit of 100% export oriented undertakings manufacturing articles or things or computer software for 10 years (not beyond 10 years from 2000-01) 10(C) Profit of newly established undertaking in I.I.D.C or I.G.C. in North-Eastern Region for 10 years
Income From Interest
Section Nature of Income Exemption limit, if any 10(15)(i)(iib)(iic) Interest, premium onï¿½ redemption or other payments from notified securities, bonds, Capital investment bonds, Relief bonds etc. To the extent mentioned in notification 10(15)(iv)(h) Income from interest payable by a Public Sector Company on notified bonds or debentures 10(15)(iv)(i) Interest payable by Government on deposits made by employees of Central or State Government or Public Sector Company of money due on retirement under a notified scheme 10(15)(vi) Interest on notified Gold Deposit bonds 10(15)(vii) Interest on notified bonds of local authorities
Income from Salary
Section Nature of Income Exemption limit, if any 10(5) Leave Travel assistance/ concession Not to exceed the amount payable by Central Government to its employees 10(5B) Remuneration of technicians having specialised knowledge and experience in specified fields (not resident in any of the four preceding financial years) whose services commence after 31.3.93 and tax on whose remuneration is paid by the employer Exemption in respect of income in the from of tax paid by employer for a period upto 48 months 10(7) Allowances and perquisites by the government to citizens of India for services abroad 10(8) Remuneration from foreign governments for duties in India under Cooperative technical assistance programmes. Exemption is provided also in respect of any other income arising outside India provided tax on such income is payable to that Government. 10(10) Death-cum-retirement Gratuity- (i) from Government (ii) Under payment of Gratuity Act 1972 Amount as per Sub-sections (2), (3) and (4) of the Act. (iii) Any other Upto one-half months salary for each year of completed service. 10(10A) Commutation of Pension- (i) from government, statutory Corporation etc. (ii) from other employers Where gratuity is payable – value of 1/3 pension.ï¿½ Where gratuity is not payable – value of 1/2 pension (iii) from fund set up by LIC u/s 10(23AAB) 10(10AA) Encashment of unutilised earned leave (i) from Central or State government (ii) from other employers Upto an amount equal to 10 months salary or Rs. 1,35,360/- which ever is less 10(10B) Retrenchment compensation Amount u/s. 25F(b) of Industrial Dispute Act 1947 or the amount notified by the government, whichever is less. 10(10C) Amount received on voluntary retirement or termination of service or voluntary separation under the schemes prepared as per Rule 2BA from public sector companies, statutory authorities, local authorities, Indian Institute of Technology, specified institutes of management or under any scheme of a company or Co-operative Society Amount as per the Scheme subject to maximum of Rs. 5 lakh 10(11) Payment under Provident Fund Act 1925 or other notified funds of Central Government 10(12) Payment under recognised provident funds To the extent provided in rule 8 of Part A of Fourth Schedule 10(13) Payment from approved Superannuation Fund 10(13A) House rent allowance least of- (i) actual allowance (ii) actual rent in excess of 10% of salary (iii) 50% of salary in Mumbai, Chennai, Delhi and Calcutta and 40% in other places 10(14) Prescribed [See Rule 2BB (1)] special allowances or benefits specifically granted to meet expenses wholly necessarily and exclusively incurred in the performance of duties To the extent such expenses are actually incurred. 10(18) Pension including family pension of recipients of notified gallantry awards
Exemptions to Non-citizens only
Section Nature of Income Exemption limit, if any 10(6)(i)(a) and (b) (i) passage money from employer for the employee and his family for home leave outside India (ii) Passage money for the employee and his family to ‘Home country’ after retirement/termination of service in India. 10(6)(ii) Remuneration of members of diplomatic missions in India and their staff, provided the members of staff are not engaged in any business or profession or another employment in India. 10(6)(vi) Remuneration of employee of foreign enterprise for services rendered during his stay in India in specified circumstances provided the stay does not exceed 90 days in that previous year. 10(6)(xi) Remuneration of foreign Government employee on training in certain establishments in India.
Exemptions to Non-resident Indians (NRIs) only
Section Nature of Income Exemption limit, if any 11.2 The units purchased by them are out of the amount remitted from abroad or from their Non-resident (External) Account
Exemptions to funds, institutions, etc.
Section Nature of Income Exemption limit, if any 10(14A) Public Financial Institution from exchange risk premium received from person borrowing in foreign currency if the amount of such premium is credited to a fund specified in section 10(23E) 10(15)(iii) Central Bank of Ceylon from interest on securities 10(15)(v) Securities held by Welfare Commissioners Bhopal Gas Victims, Bhopal from Interest on securities held in Reserve Bank’s SGL Account No. SL/DH-048 10(20) any local Authority (a)ï¿½ Business income derived from Supply of water or electricity any where. Supply of other commodities or service within its own jurisdictional area. (b)ï¿½ Income from house property, other sources and capital gains. 10(20A) Housing or other Development authorities 10(21) Approved Scientific Research Association 10(23) Notified Sports Association/ Institution for control of cricket, hockey, football, tennis or other notified games. 10(23A) Notified professional association/institution All income except from house property, interest or dividends on investments and rendering of any specific services 10(23AA) Regimental fund or Non-public fund 10(23AAA) Fund for welfare of employees or their dependents. 10(23AAB) Fund set up by LIC of India under a pension scheme 10(23B) Public charitable trusts or registered societies approved by Khadi or Village Industries commission 10(23BB) Any authority for development of khadi or village industries 10(23BBA) Societies for administration of public, religious or charitable trusts or endowments or of registered religious or charitable Societies. 10(23BBB) European Economic Community from Income from interest, dividend or capital gains 10(23BBC) SAARC Fund 10(23C) Certain funds for relief, charitable and promotional purposes, certain educational or medical institutions 10(23D) Notified Mutual Funds 10(23E) Notified Exchange Risk Administration Funds 10(23EA) Notified Investors Protection Funds set up by recognised Stock Exchanges 10(23FB) Venture capital Fund/ company set up to raise funds for investï¿½ment in venture Capital undertaking Income from investï¿½ment in venture capital undertaking 10(23G) Infrastructure capital fund, or infrastructure capital company Income from dividend, interest and long term capital gains from investment in approved infrastructure enterprise 10(24) Registered Trade Unions Income from house property and other sources 10(25)(i) Provident Funds Interest on securities and capital gains from transfer of such securities 10(25)(ii) Recognised Provident Funds 10(25)(iii) Approved Superannuation Funds 10(25)(iv) Approved Gratuity Fundsï¿½ 10(25)(v) Deposit linked insurance funds 10(25A) Employees State Insurance Fund 10(26B)(26BB) and (27) Corporation or any other body set up or financed by and government for welfare of scheduled caste/ scheduled tribes/backward classes or minorities communities 10(29) Marketing authorities Income from letting of godown and warehouses 10(29A) Certain Boards such as coffee Board and others and specified Authorities