15. Income of a Consultant : Income of a consultant who is engaged by an international organization (agency) for rendering technical services in India in connection with any technical assistance programme between the Central Government and the agency.
16. Income of a family member of a technical assistant/ Consultant/ Employee : Income of a family member of an individual referred above, accompanying him to India, which accrues or arises outside India and is liable to tax in that foreign State or the country of origin of such member.
17. Death-cum-retirement gratuity:
1. Any death-cum-retirement gratuity under the Pension Rules of the Central Government and State Government employees.
2. Any gratuity received under the Payment of Gratuity Act.
3. Any other gratuity received by the employee, his widow or dependents to the extent it does not exceed one-half month's salary for each year of completed service taking average salary of ten months subject to a maximum of Rs. 3,50,000.
18. Commuted Pension: Any payment in commutation of pension :
i. Received under the Civil Pension Commutation Rules or under any other scheme by a Central/State Government employee.
ii. Received from a pension fund (Jeevan Suraksha) set up by Life Insurance Corporation
iii. Received from any other employer subject to the limit not exceeding
a) 1/3rd of the commuted value of such pension in case where the employee received any gratuity.
b) In any other case 1/2 of the commuted value of such pension.
19. Compensation to Employee : Any compensation received by a workman under Industrial Disputes Act or notification issued there under or under any standing order or contract of service or otherwise at the time of his retrenchment is exempt subject to the extent such compensation is in accordance with Section 25F(b) of Industrial Disputes Act or Rs. 5,00,000, whichever is less.
20. Payment under Bhopal Gas Leak Disaster : Any compensation on account of a disaster received/receivable From Central/State Government or local authority, by an individual or his legal heir.
21. Payment on Voluntary Retirement : payment, subject to a maximum of Rs. 5 lakhs, received or receivable by an employee of Public Sector Company or any other company or State or Provincial Act, or a local authority, or a co-operative society or a University or a notified institute of management, on voluntary retirement or termination of service is exempted.
22. Tax paid by an employer on any income by way of perquisites, on behalf of an employee.
23. Payment/Bonus under a Life Insurance Policy : Any sum received under a life insurance policy, including any bonus but excluding sums received under -
1. a policy referred to in Section 80DD
2. a Keyman Insurance Policy on the life of any former or present employee or any person connected with business
3. an insurance policy issued on or after 1.4.2003, in respect of which the premium payable for a year exceeds 20% of the sum assured, except in case of amount received on the death of a person
24. Payment from provident fund : Any payment (including interest from a provident fund) under Provident Fund Act, 1925 or Public Provident Fund Scheme, 1968 or such other funds set up by Government of India.
25. Accumulated balance of Recognized Provident Fund : any accumulated balance due or payable to an employee from a recognized provident fund is exempted, if any of the following conditions are satisfied-
1. if the employee has rendered a continuous service of more than five years;
2. if his service, though not continuous, has been terminated due to his ill-health or by the contraction or discontinuation of his employer's business or any other cause beyond his control;
3. if on cessation of his employment, his accumulated balance is transferred to recognized provident fund.
26. Payment from superannuation fund : Any payment from an approved superannuation fund made on the death of a beneficiary; to an employee in lieu of / in commutation of an annuity on his retirement at or after a specified age; refund of contributions on the death of a beneficiary; or refund of contributions to an employee on his leaving the service otherwise than by retirement at or after a specified age, to the extent of contributions made prior to 1.4.1962 and any interest thereon.
27. House Rent Allowance (HRA) : A special allowance to an assessee by his employer to meet expenditure incurred on payment of rent for accommodation. The exemption is not available, in case the residential accommodation occupied by the assessee, is owned by him or the assessee has not actually incurred expenditure on payment of rent in respect of the accommodation occupied by him.
30. Interest on Capital Investment Bonds notified up to 31.5.2002 having simple interest @ 7% p.a. payable annually, on investment held by individual or HUF.
31. Relief Bonds : Notified Relief Bonds carrying interest of 6.5% p.a. w.e.f. 1.3.2003 (8% for bonds issued during 1.3.2002 to 28.2.2003, 8.5% during 15.3.2001 to 28.2.2002, 9% during 1.1.1999 to 14.3.2001 and 10% up to 31.12.1998) in case of an individual or an H.U.F.
32. Interest on NRI Bonds : Interest on NRI Bonds notified up to 31.5.2002 of State Bank of India and NRI Bonds Second Series issued by State Bank of India, arising to non-resident Indian or his nominee or survivor or the person to whom such bonds have been gifted by a non-resident, provided the bonds are purchased in foreign exchange and the principal and interest thereon, are not allowable to be taken out of India.
33. Interest payable to any foreign bank : Interest by any scheduled bank shall be exempt, provided such deposits are made with the approval of Reserve Bank of India.
34. Interest payable to the Nordic Investment Bank on a loan advanced by it to a project approved by the Central Government.
35. Interest payable to the European Investment Bank on a loan granted by it in pursuance of the framework-agreement for financial co¬operation with the Central Government.
36. Interest on moneys borrowed before 1.6.2001 by IFCI, IDBI, Exim Bank, National Housing Bank, SIDBI or ICICI from sources outside India is exempt to the extent it does not exceed the amount of interest at the rate approved by the Central Government.
37. Interest Payable by an Industrial Undertaking in India on a foreign currency loan borrowed before 1.6.2001 from sources outside India and approved by the Central Government.
38. Interest Payable by Scheduled Banks to NRI or a not ordinarily resident individual/HUF on foreign currency deposits approved by the RBI.
39. Interest Payable on foreign currency loans under an agreement approved by the Central Government before 1.6.2003 by a Public Company providing long-term housing finance for construction or purchase of residential houses in India.
40. Interest Payable on specified Public Sector Companies' Bonds.
41. Interest on Retirement Benefits : an employee of the Central or State Government, or a Public Sector Company depositing interest under Deposit Scheme for Retiring Government Employees, 1989, and Deposit Scheme for Retiring Employees of Public Sector Companies, 1991.
42. Interest on Gold Deposit Bonds, 1999
43. Interest on notified bonds issued by a local authority
44. Interest received by a non-resident or a not ordinarily resident in India, on a deposit made on or after 1.4.2005 in an Offshore Banking Unit.
45. Payment made by Indian Company : any payment by an Indian company engaged in the business of operation of aircraft to acquire an aircraft or an aircraft engine on lease from the Government of a foreign State or a foreign enterprise under an agreement entered before 1 4.1997 or after 31.3.1999 but before 1.4.2007 and approved by the Central Government.
46. Scholarships given to meet cost of education.
47. Any allowance received by the MP’s and MLA’s under the Members of Parliament (Constituency Allowance) Rules, 1986.
48. Amount received by way of Award (in cash or kind) instituted in the public interest by Central/State Government or approved by the Central Government or as rewards by the Central/State Government for approved purposes.
49. Pension/Family Pension received by a Central or State Government employee who has been awarded Param Vir Chakra/Maha Vir Chakra/Vir Chakra/other notified2 gallantry award, or by his family.
50. Family Pension received by a widow/children/nominated heirs, of a member of the armed forces (including para-military forces), who died in the course of operational duties, in prescribed circumstances and subject to prescribed conditions.
51. Annual value of a palace in the occupation of an ex-ruler.
52. Income of local authority i.e. a Panchayat, Municipality, Municipal Committee, District Board or Cantonment Board.
53. Income of approved scientific and research association wholly and exclusively to its objects, including profits and gains of a business carried on by the institution which is incidental to its objects.
54. Income of a News Agency set up in India, includes income or accumulates solely for collection and distribution of news and does not distribute its income in any manner to its members.
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