Exemption under sec 10(26)

Since income accrues and arises to him from the exempted area same is exempted under this section. Make sure that the orgination of the goods sold and services rendered are from the states only and Invoice is raised from those areas only. 

Sec 10(26) reads as follows:

(26) 6 in the case of a member of a Scheduled Tribe as defined in clause (25) of article 366 7 of the Constitution, residing in any area specified in Part I or Part II of the Table appended to paragraph 20 of the Sixth Schedule to the Constitution or in the 7 States of Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura] or in the areas covered by Notification No. TAD R 35 50 109, dated the 23rd February, 1951 , issued by the Governor of Assam under the proviso to sub- paragraph (3) of the said paragraph 20 as it stood immediately before the commencement of the North- Eastern Areas (Reorganisation) Act, 1971 (18 of 1971 )], any income which accrues or arises to him,-

(a) from any source in the areas 9 or States] aforesaid, or

(b) by way of dividend or interest on securities;]