Section 10(1) to 10(10D) - Incomes not included in total income [Clause (1) to Clause (10D)] - Income-tax Act, 1961

Next CHAPTER III INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME Incomes not included in total income [Clause (1) to Clause (10D)] 10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included- (1) agricultural income ; (2) 1 [ subject to the provisions of sub-section (2) of section 64, ] any sum received by an individual as a member of a Hindu undivided family, 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 ; 2 [ (2A) in the case of a person being a partner of a firm which is separately assessed as such, his share in the total income of the firm. Explanation .-For the purposes of this clause, the share of a partner in the total income of a firm separately assessed as such shall, notwithstanding anything contained in any other law, be an amount which bears to the total income of the firm the same proportion as the amount of his share in the profits of the firm in accordance with the partnership deed bears to such profits ; ] (3) 3 [ *** ] 4 [ (4) (i) in the case of a non-resident, any income by way of interest on such securities or bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf, including income by way of premium on the redemption of such bonds : 5 [Provided that the Central Government shall not specify, for the purposes of this sub-clause, such securities or bonds on or after the 1st day of June, 2002; ] 6 [ (ii) in the case of an individual, any income by way of interest on moneys standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with 83 [the Foreign Exchange Management Act, 1999 (42 of 1999)], and the rules made thereunder : Provided that such individual is a person resident outside India as defined in 88 [ clause (w) ] of section 2 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account ;]] 7 [ *** ] 8 [ (4B) in the case of an individual, being a citizen of India or a person of Indian origin, who is a non-resident, any income from interest on such savings certificates issued 9 [ before the 1st day of June, 2002 ] by the Central Government as that Government may, by notification in the Official Gazette, specify in this behalf : Provided that the individual has subscribed to such certificates in convertible foreign exchange remitted from a country outside India in accordance with the provisions of 84 [the Foreign Exchange Management Act, 1999 (42 of 1999)], and any rules made thereunder. Explanation .-For the purposes of this clause,- (a) a person shall be deemed to be of Indian origin if he, or either of his parents or any of his grandparents, was born in undivided India ; (b) convertible foreign exchange means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of 85 [the Foreign Exchange Management Act, 1999 (42 of 1999) ], and any rules made thereunder ;] 90 [ (4C) any income by way of interest payable to a non-resident, not being a company, or to a foreign company, by any Indian company or business trust in respect of monies borrowed from a source outside India by way of issue of rupee denominated bond, as referred to in clause (ia) of sub-section (2) of section 194LC, during the period beginning from the 17th day of September, 2018 and ending on the 31st day of March, 2019; ] 91 [ (4D) any income accrued or arisen to, or received by a specified fund as a result of transfer of capital asset referred to in clause (viiab) or section 47, on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in 92 [ convertible foreign exchange or as a result of transfer of securities (other than shares in a company resident in India) or any income from securities issued by a non-resident (not being a permanent establishment of a non-resident in India) and where such income otherwise does not accrue or arise in India or any income from a securitisation trust which is chargeable under the head profits and gains of business or profession , to the extent such income accrued or arisen to, or is received, is attributable to units held by non-resident (not being the permanent establishment of a non-resident in India) 94 [ or is attributable to the investment division of offshore banking unit, as the case may be, ] computed in the prescribed manner ] . Explanation :-For the purposes of this clause, the expression- (a) convertible foreign exchange means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 (42 of 1999) and the rules made thereunder; 95 [ (aa) investment division of offshore banking unit means an investment division of a banking unit of a non-resident located in an International Financial Services Centre, as referred to in sub-section (1A) of section 80LA and which has commenced its operations on or before the 31st day of March, 117 [ 2025 ]] (b) manager shall have the meaning assigned to it in clause (q) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992.); 93 [ (ba) permanent establishment shall have the same meaning assigned to it in clause (iiia) of section 92F; (bb) securities shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and shall also include such other securities or instruments as may be notified by the Central Government in the Official Gazette in this behalf; (bc) securitisation trust shall have the same meaning assigned to it in clause (d) of the Explanation to section 115TCA; ] 96 [ (c) specified fund means, (i) a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate, 120 [ (I)(a) ] which has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992,) or 112 [ regulated under the International Financial Services Centres Authority (Fund Management) Regulations, 2022, made under the ] International Financial Services Centres Authority Act, 2019 (50 of 2019.); 121 [ (b) which has been granted a certificate as a retail scheme or an Exchange Traded Fund, and is regulated under the International Financial Services Centres Authority (Fund Management) Regulations, 2022, made under the International Financial Services Centres Authority Act, 2019 and satisfies such conditions, as may be prescribed; ] (II) which is located in any International Financial Services Centre; and (III) of which all the units other than unit held by a sponsor or manager are held by 103 [ non-residents: Provided that the condition specified in this item shall not apply where any unit holder or holders, being non-resident during the previous year when such unit or units were issused, becomes resident under clause (1) or clause (1A) of section 6 in any previous year subsequent to that year, if the aggregate value and number of the units held by such resident unit holder or holders do not exceed five per cent. of the total units issued and fulfil such other conditions as may be prescribed; or ] (ii) investment division of an offshore banking unit, which has been (I) granted a certificate of registration as a Category-I foreign portfolio investor under the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992.) and which has commenced its operations on or before the 31st day of March, 118 [ 2025 ] ; and (II) fulfils such conditions including maintenance of separate accounts for its investment division, as may be prescribed; ] (d) sponsor shall have the meaning assigned to it in clause (w) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992.); (e) trust means a trust established under the Indian Trusts Act, 1882 (2 of 1882.) or under any other law for the time being in force; (f) unit means beneficial interest of an investor in the fund and shall include shares or partnership interest; ] 97 [ 113 [ (4E) any income accrued or arisen to, or received by a non-resident as a result of (i) transfer of non-deliverable forward contracts or offshore derivative instruments or over-the-counter derivatives; or (ii) distribution of income on offshore derivative instruments, entered into with an offshore banking unit of an International Financial Services Centre referred to in sub-section (1A) of section 80LA, which fulfils such conditions as may be prescribed; ] (4F) any income of a non-resident by way of royalty or interest, on account of lease of an aircraft 105 [ or a ship ] in a previous year, paid by a unit of an International Financial Services Centre as referred to in sub-section (1A) of section 80LA, if the unit has commenced its operations on or before the 31st day of March, 119 [ 2025 ] . 106 [Explanation .-For the purposes of this clause,- (i) aircraft means an aircraft or a helicopter, or an engine of an aircraft or a helicopter, or any part thereof; (ii) ship means a ship or an ocean vessel, engine of a ship or ocean vessel, or any part thereof; ]] 114 [ (4G) any income received by a non-resident from, (i) portfolio of securities or financial products or funds, managed or administered by any portfolio manager on behalf of such non-resident; or (ii) such activity carried out by such person, as may be notified by the Central Government in the Official Gazette, in an account maintained with an Offshore Banking Unit in any International Financial Services Centre, as referred to in sub-section (IA) of section 80LA, to the extent such income accrues or arises outside India and is not deemed to accrue or arise in India. Explanation. For the purposes of this clause, portfolio manager shall have the same meaning as assigned to it in clause (z) of sub-regulation (1) of regulation 2 of the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021, made under the International Financial Services Centres Authority Act, 2019 (50 of 2019.); (4H) any income of a non-resident or a Unit of an International Financial Services Centre, as referred to in sub-section (1A) of section 80LA, engaged primarily in the business of leasing of an aircraft, by way of capital gains arising from the transfer of equity shares of domestic company, being a Unit of an International Financial Services Centre, as referred to in sub-section (1A) of section 80LA, engaged primarily in the business of leasing of an aircraft which has commenced operations on or before the 31st day of March, 2026: Provided that the provisions of this clause shall apply for capital gains arising from the transfer of equity shares of such domestic company in a previous year relevant to an assessment year falling within the (a) period of ten assessment years beginning with the assessment year relevant to the previous year in which the domestic company has commenced operations; or (b) period of ten assessment years beginning with the assessment year commencing on the 1st day of April, 2024, where the period referred to in clause (a) ends before the 1st day of April, 2034. Explanation. For the purposes of this clause, aircraft means an aircraft or a helicopter, or an engine of an aircraft or a helicopter, or any part thereof; ] 10 [ (5) in the case of an individual, the value of any travel concession or assistance received by, or due to, him,- (a) from his employer for himself and his family, in connection with his proceeding on leave to any place in India ; (b) from his employer or former employer for himself and his family, in connection with his proceeding to any place in India after retirement from service or after the termination of his service, subject to such conditions as may be prescribed (including conditions as to number of journeys and the amount which shall be exempt per head) having regard to the travel concession or assistance granted to the employees of the Central Government : Provided that the amount exempt under this clause shall in no case exceed the amount of expenses actually incurred for the purpose of such travel. 98 [Provided further that for the assessment year beginning on the 1st day of April, 2021, the value in lieu of any travel concession or assistance received by, or due to, such individual shall also be exempt under this clause subject to the fulfilment of such conditions (including the condition of incurring such amount of such expenditure within such period), as may be prescribed. ] 99 [Explanation 1] .-For the purposes of this clause, family , in relation to an individual, means- (i) the spouse and children of the individual ; and (ii) the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual; ] 100 [Explanation 2 .-For the removal of doubts, it is hereby clarified that where an individual claims exemption and the exemption is allowed under the second proviso in connection with the prescribed expenditure, no exemption shall be allowed under this clause in respect of such prescribed expenditure to any other individual. ] (5A) 11 [***] (5B) 12 [***] (6) in the case of an individual who is not a citizen of India,- (i) 13 [ *** ] 14 [ (ii) the remuneration received by him as an official, by whatever name called, of an embassy, high commission, legation, commission, consulate or the trade representation of a foreign State, or as a member of the staff of any of these officials, for service in such capacity : Provided that the remuneration received by him as trade commissioner or other official representative in India of the Government of a foreign State (not holding office as such in an honorary capacity), or as a member of the staff of any of those officials, shall be exempt only if the remuneration of the corresponding officials or, as the case may be, members of the staff, if any, of the Government resident for similar purposes in the country concerned enjoys a similar exemption in that country : Provided further that such members of the staff are subjects of the country represented and are not engaged in any business or profession or employment in India otherwise than as members of such staff ; ] (iii) to (v) 14 [***] (vi) the remuneration received by him as an employee of a foreign enterprise for services rendered by him during his stay in India, 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 ninety days in such previous year ; and (c) such remuneration is not liable to be deducted from the income of the employer chargeable under this Act ; (via) 15 [***] (vii) 16 [***] (viia) 17 [***] (viii) any income chargeable under the head Salaries received by or due to any such individual being a non-resident as remuneration 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 ninety days in the previous year ; (ix) 18 [***] (x) 19 [***] 20 [ (xi) the remuneration received by him as an employee of the Government of a foreign State during his stay in India in connection with his training in any establishment or office of, or in any undertaking owned by,- (i) the Government ; or (ii) any company in which the entire paid-up share capital is held by the Central Government, or any State Government or Governments, or partly by the Central Government and partly by one or more State Governments ; or (iii) any company which is a subsidiary of a company referred to in item (ii) ; or (iv) any corporation established by or under a Central, State or Provincial Act ; or (v) any society registered under the Societies Registration Act, 1860 (14 of 1860), or under any other corresponding law for the time being in force and wholly financed by the Central Government, or any State Government or State Governments, or partly by the Central Government and partly by one or more State Governments ; ] 21 [ (6A) where in the case of a foreign company deriving income by way of royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or the Indian concern after the 31st day of March, 1976 22 [ but before the 1st day of June, 2002 ] 23 [ and,- (a) where the agreement relates to a matter included in the industrial policy, for the time being in force, of the Government of India, such agreement is in accordance with that policy ; and (b) in any other case, the agreement is approved by the Central Government, the tax on such income is payable, under the terms of the agreement, by Government or the Indian concern to the Central Government, the tax so paid ]. Explanation .-For the purposes of this clause 24 [ and clause (6B) ] ,- (a) fees for technical services shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9 ; (b) foreign company shall have the same meaning as in section 80B ; (c) royalty shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9 ;] 25 [ (6B) where in the case of a non-resident (not being a company) or of a foreign company deriving income (not being salary, royalty or fees for technical services) from Government or an Indian concern in pursuance of an agreement entered into 26 [ before the 1st day of June, 2002 ] by the Central Government with the Government of a foreign State or an international organisation, the tax on such income is payable by Government or the Indian concern to the Central Government under the terms of that agreement or any other related agreement approved [before that date] by the Central Government, the tax so paid ;] 27 [ (6BB) where in the case of the Government of a foreign State or a foreign enterprise deriving income from an Indian company engaged in the business of operation of aircraft, as a consideration of acquiring an aircraft or an aircraft engine (other than payment for providing spares, facilities or services in connection with the operation of leased aircraft) on lease under 28 [ an agreement entered into after the 31st day of March, 1997 but before the 1st day of April, 1999, or entered into after the 29 [ 31st day of March, 30 [ 2007 ]] and approved by the Central Government in this behalf ] and the tax on such income is payable by such Indian company under the terms of that agreement to the Central Government, the tax so paid. Explanation .-For the purposes of this clause, the expression foreign enterprise means a person who is a non-resident;] 31 [ (6C) any income arising to such foreign company, as the Central Government may, by notification in the Official Gazette, specify in this behalf, by way of 32 [ 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 ;] 89 [(6D) any income arising to a non-resident, not being a company, or a foreign company, by way of royalty from, or fees for technical services rendered in or outside India to, the National Technical Research Organisation;] (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 ; (8) in the case of an individual who is assigned to duties in India in connection with any co-operative technical assistance programmes and projects in accordance with an agreement entered into by the Central Government and the Government of a foreign State (the terms whereof provide for the exemption given by this clause)- (a) the remuneration received by him directly or indirectly from the Government of that foreign State for such duties, and (b) any other income of such individual which accrues or arises outside India, and is not deemed to accrue or arise in India, in respect of which such individual is required to pay any income or social security tax to the Government of that foreign State ; 108 [ Provided that nothing contained in this clause shall apply to such remuneration and income of the previous year relevant to the assessment year beginning on or after the 1st day of April, 2023; ] 33 [ (8A) in the case of a consultant- (a) any remuneration or fee received by him or it, directly or indirectly, out of the funds made available to an international organisation [hereafter referred to in this clause and clause (8B) as the agency] under a technical assistance grant agreement between the agency and the Government of a foreign State ; and (b) any other income which accrues or arises to him or it outside India, and is not deemed to accrue or arise in India, in respect of which such consultant is required to pay any income or social security tax to the Government of the country of his or its origin. 109 [ Provided that nothing contained in this clause shall apply to such remuneration, fee and income of the previous year relevant to the assessment year beginning on or after the 1st day of April, 2023. ] Explanation .-In this clause, consultant means- (i) any individual, who is either not a citizen of India or, being a citizen of India, is not ordinarily resident in India ; or (ii) any other person, being a non-resident, engaged by the agency for rendering technical services in India in connection with any technical assistance programme or project, provided the following conditions are fulfilled, namely :- (1) the technical assistance is in accordance with an agreement entered into by the Central Government and the agency ; and (2) the agreement relating to the engagement of the consultant is approved by the prescribed authority for the purposes of this clause ; (8B) in the case of an individual who is assigned to duties in India in connection with any technical assistance programme and project in accordance with an agreement entered into by the Central Government and the agency- (a) the remuneration received by him, directly or indirectly, for such duties from any consultant referred to in clause (8A) ; and (b) any other income of such individual which accrues or arises outside India, and is not deemed to accrue or arise in India, in respect of which such individual is required to pay any income or social security tax to the country of his origin, provided the following conditions are fulfilled, namely :- (i) the individual is an employee of the consultant referred to in clause (8A) and is either not a citizen of India or, being a citizen of India, is not ordinarily resident in India ; and (ii) the contract of service of such individual is approved by the prescribed authority before the commencement of his service;] 110 [ Provided that nothing contained in this clause shall apply to such remuneration and income of the previous year relevant to the assessment year beginning on or after the 1st day of April, 2023; ] (9) the income of any member of the family of any such individual as is referred to in clause (8) 34 [ or clause (8A) or, as the case may be, clause (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 35 [ or, as the case may be, country of origin of such member ] ; 111 [ Provided that nothing contained in this clause shall apply to such income of the previous year relevant to the assessment year beginning on or after the 1st day of April, 2023; ] 36 [ (10) (i) any death-cum-retirement gratuity received under the revised Pension Rules of the Central Government or, as the case may be, the Central Civil Services (Pension) Rules, 1972, or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority or any payment of retiring gratuity received under the Pension Code or Regulations applicable to the members of the defence services ; (ii) any gratuity received under the Payment of Gratuity Act, 1972 (39 of 1972), to the extent it does not exceed an amount calculated in accordance with the provisions of sub-sections (2) and (3) of section 4 of that Act ; (iii) any other gratuity received by an employee on his retirement or on his becoming incapacitated prior to such retirement or on termination of his employment, or any gratuity received by his widow, children or dependants on his death, to the extent it does not, in either case, exceed one-half month's salary for each year of completed service, 37 [ calculated on the basis of the average salary for the ten months immediately preceding the month in which any such event occurs, subject to such limit as the Central Government may, by notification in the Official Gazette, specify in this behalf having regard to the limit applicable in this behalf to the employees of that Government ] : Provided that where any gratuities referred to in this clause are received by an employee from more than one employer in the same previous year, the aggregate amount exempt from income-tax under this clause 38 [ shall not exceed the limit so specified ] : Provided further that where any such gratuity or gratuities was or were received in any one or more earlier previous years also and the whole or any part of the amount of such gratuity or gratuities was not included in the total income of the assessee of such previous year or years, the amount exempt from income-tax under this clause 39 [ shall not exceed the limit so specified ] as reduced by the amount or, as the case may be, the aggregate amount not included in the total income of any such previous year or years. 40 [ * * * ] Explanation .- 41 [ In this clause, and in clause (10AA) ] , salary shall have the meaning assigned to it in clause (h) of rule 2 of Part A of the Fourth Schedule ;] 42 [ (10A) (i) any payment in commutation of pension received under the Civil Pensions (Commutation) Rules of the Central Government or under any similar scheme applicable 43 [ to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the defence services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority ] or a corporation established by a Central, State or Provincial Act ; (ii) any payment in commutation of pension received under any scheme of any other employer, to the extent it does not exceed- (a) in a case where the employee receives any gratuity, the commuted value of one-third of the pension which he is normally entitled to receive, and (b) in any other case, the commuted value of one-half of such pension, such commuted value being determined having regard to the age of the recipient, the state of his health, the rate of interest and officially recognised tables of mortality ; 44 [ * * * ] 45 [ (iii) any payment in commutation of pension received from a fund under clause (23AAB) ; ] 46 [ (10AA) (i) any payment received by an employee of the Central Government or a State Government as the cash equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement 47 [ whether ] on superannuation or otherwise ; (ii) any payment of the nature referred to in sub-clause (i) received by an employee, other than an employee of the Central Government or a State Government, in respect of so much of the period of earned leave at his credit at the time of his retirement 48 [ whether ] on superannuation or otherwise as does not exceed 49 [ ten ] months, calculated on the basis of the average salary drawn by the employee during the period of ten months immediately preceding his retirement 50 [ whether ] on superannuation or otherwise, 51 [ subject to such limit as the Central Government may, by notification in the Official Gazette, specify in this behalf having regard to the limit applicable in this behalf to the employees of that Government ] : Provided that where any such payments are received by an employee from more than one employer in the same previous year, the aggregate amount exempt from income-tax under this sub-clause 52 [ shall not exceed the limit so specified ] : Provided further that where any such payment or payments was or were received in any one or more earlier previous years also and the whole or any part of the amount of such payment or payments was or were not included in the total income of the assessee of such previous year or years, the amount exempt from income-tax under this sub-clause 53 [ shall not exceed the limit so specified ], as reduced by the amount or, as the case may be, the aggregate amount not included in the total income of any such previous year or years. 54 [ * * * ] Explanation .-For the purposes of sub-clause (ii),- 55 [ * * * ] the entitlement to earned leave of an employee shall not exceed thirty days for every year of actual service rendered by him as an employee of the employer from whose service he has retired ; 56 [ * * * ] 57 [ (10B) any compensation received by a workman under the Industrial Disputes Act, 1947 (14 of 1947), or under any other Act or Rules, orders or notifications issued thereunder or under any standing orders or under any award, contract of service or otherwise, 58 [ at the time of his retrenchment : Provided that the amount exempt under this clause shall not exceed- (i) an amount calculated in accordance with the provisions of clause (b) of section 25F of the Industrial Disputes Act, 1947 (14 of 1947) ; or 59 [ (ii) such amount, not being less than fifty thousand rupees, as the Central Government may, by notification in the Official Gazette, specify in this behalf, ] whichever is less : Provided further that the preceding proviso shall not apply in respect of any compensation received by a workman in accordance with any scheme which the Central Government may, having regard to the need for extending special protection to the workmen in the undertaking to which such scheme applies and other relevant circumstances, approve in this behalf. ] Explanation .-For the purposes of this clause- (a) compensation received by a workman at the time of the closing down of the undertaking in which he is employed shall be deemed to be compensation received at the time of his retrenchment ; (b) compensation received by a workman, at the time of the transfer (whether by agreement or by operation of law) of the ownership or management of the undertaking in which he is employed from the employer in relation to that undertaking to a new employer, shall be deemed to be compensation received at the time of his retrenchment if- (i) the service of the workman has been interrupted by such transfer ; or (ii) the terms and conditions of service applicable to the workman after such transfer are in any way less favourable to the workman than those applicable to him immediately before the transfer ; or (iii) the new employer is, under the terms of such transfer or otherwise, legally not liable to pay to the workman, in the event of his retrenchment, compensation on the basis that his service has been continuous and has not been interrupted by the transfer ; (c) the expressions employer and workman shall have the same meanings as in the Industrial Disputes Act, 1947 (14 of 1947); ] 60 [ (10BB) any payments made under the Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 (21 of 1985), and any scheme framed thereunder except payment made to any assessee in connection with the Bhopal Gas Leak Disaster to the extent such assessee has been allowed a deduction under this Act on account of any loss or damage caused to him by such disaster ; ] 61 [ (10BC) any amount received or receivable from the Central Government or a State Government or a local authority by an individual or his legal heir by way of compensation on account of any disaster, except the amount received or receivable to the extent such individual or his legal heir has been allowed a deduction under this Act on account of any loss or damage caused by such disaster. Explanation .-For the purposes of this clause, the expression disaster shall have the meaning assigned to it under clause (d) of section 2 of the Disaster Management Act, 2005 (53 of 2005); ] 62 [ (10C) any amount received 63 [ or receivable ] by an employee of- (i) a public sector company ; or (ii) any other company ; or (iii) an authority established under a Central, State or Provincial Act ; or (iv) a local 64 [ authority ; or ] 65 [ (v) a co-operative society ; or (vi) 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 (vii) an Indian Institute of Technology within the meaning of clause (g) of section 3of the Institutes of Technology Act, 1961 (59 of 1961) ; or 66 [ (viia) any State Government; or ] 67 [ (viib) the Central Government; or ] 68 [ (viic) an institution, having importance throughout India or in any State or States, as the Central Government may, by notification in the Official Gazette, specify in this behalf; or ] (viii) such institute of management as the Central Government may, by notification in the Official Gazette, specify in this behalf, ] 69 [ on his ] 70 [ voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in sub-clause (i), a scheme of voluntary separation, to the extent such amount does not exceed five lakh rupees ] : Provided that the schemes of the said companies or authorities 71 [ or societies or Universities or the Institutes referred to in sub-clauses (vii) and (viii) ], as the case may be, governing the payment of such amount are framed in accordance with such guidelines (including inter alia criteria of economic viability) as may be prescribed 72 [ *** ] : Provided further that where exemption has been allowed to an employee under this clause for any assessment year, no exemption thereunder shall be allowed to him in relation to any other assessment year ; ] 76 [Provided also 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 this clause shall be allowed to him in relation to such, or any other, assessment year; ] 73 [ (10CC) in the case of an employee, being an individual deriving income in the nature of a perquisite, not provided for by way of monetary payment, within the meaning of clause (2) of section 17, the tax on such income actually paid by his employer, at the option of the employer, on behalf of such employee, notwithstanding anything contained in section 200 of the Companies Act, 1956 (1 of 1956); ] 74 [ (10D) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, other than- (a) any sum received under sub-section (3) of section 80DD or sub-section (3) of section 80DDA; or (b) any sum received under a Keyman insurance policy; or (c) any sum received under an insurance policy issued on or after the 1st day of April, 2003, 77 [ but on or before the 31st day of March, 2012 ] in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum 78 [ assured; or ] : 79 [ (d) any sum received under an insurance policy issued on or after the 1st day of April, 2012 in respect of which the premium payable for any of the years during the term of the policy exceeds ten per cent of the actual capital sum assured ] ; Provided that the provisions of 80 [ sub-clauses (c) and (d) ] shall not apply to any sum received on the death of a person: Provided further that for the purpose of calculating the actual capital sum assured under 81 [ sub-clause (c) ] , effect shall be given to the 75 [Explanation to sub-section (3) of section 80C 115 [ **** ]]. 86 [Provided also that where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person, who is- (i) a person with disability or a person with severe disability as referred to in section 80U; or (ii) suffering from disease or ailment as specified in the rules made under section 80DDB, the provisions of this sub-clause shall have effect as if for the words ten per cent ,the words fifteen per cent had been substituted. ] 101 [Provided also that nothing contained in this clause shall apply with respect to any unit linked insurance policy, issued on or after the 1st day of February, 2021, if the amount of premium payable for any of the previous year during the term of such policy exceeds two lakh and fifty thousand rupees: Provided also that if the premium is payable, by a person, for more than one unit linked insurance policies, issued on or after the 1st day of February, 2021, the provisions of this clause shall apply only with respect to those unit linked insurance policies, where the aggregate amount of premium does not exceed the amount referred to in fourth proviso in any of the previous year during the term of any of those policies: 116 [Provided also that nothing contained in this clause shall apply with respect to any life insurance policy, other than a unit linked insurance policy, issued on or after the 1st day of April, 2023, if the amount of premium payable for any of the previous years during the term of such policy exceeds five lakh rupees: Provided also that if the premium is payable by a person for more than one life insurance policy, other than unit linked insurance policy, issued on or after the 1st day of April, 2023, the provisions of this clause shall apply only with respect to those life insurance policies, other than unit linked insurance policies, where the aggregate amount of premium does not exceed the amount referred to in the sixth proviso in any of the previous years during the term of any of those policies: Provided also that the provisions of the fourth, fifth, sixth and seventh provisos shall not apply to any sum received on the death of a person: ] Provided also that if any difficulty arises in giving effect to the provisions of this clause, the Board may, with the previous approval of the Central Government, issue guidelines for the purpose of removing the difficulty and every guideline issued by the Board under this proviso shall be laid before each House of Parliament, and shall be binding on the income-tax authorities and the assessee. ] 82 [Explanation 1 .-For the purposes of this clause, Keyman insurance policy means a life insurance policy taken by a person on the life of another person who is or was the employee of the first-mentioned person or is or was connected in any manner whatsoever with the business of the first-mentioned person 87 [and includes such policy which has been assigned to a person, at any time during the term of the policy, with or without any consideration]; Explanation 2.- For the purposes of sub-clause (d), the expression actual capital sum assured shall have the meaning assigned to it in the Explanation to sub-section (3A) of section 80C; ]] 102 [Explanation 3 .-For the purposes of this clause, unit linked insurance policy means a life insurance policy which has components of both investment and insurance and is linked to a unit as defined in clause (ee) of regulation 3 of the Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019 issued by the Insurance Regulatory and Development Authority under the Insurance Act, 1938 (4 of 1938.) and the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999.); ] *************************** Notes:- 1. Inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971. 2. Inserted by the Finance Act, 1992, w.e.f. 1-4-1993. Earlier, clause (2A) was inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 and was omitted by the Direct Tax Laws (Amendment) Act, 1989, with effect from the same date. 3. Omitted by the Finance Act, 2002, w.e.f. 1-4-2003. Prior to its omission, clause (3), as substituted by the Finance Act, 1972, w.e.f. 1-4-1972, and amended by the Finance Act, 1986, w.e.f. 1-4-1987, Finance (No. 2) Act, 1991, w.e.f. 1-10-1991 and Finance Act, 1992, w.e.f. 1-4-1992, read as under : '(3) any receipts which are of a casual and non-recurring nature, to the extent such receipts do not exceed five thousand rupees in the aggregate : Provided that where such receipts relate to winnings from races including horse races, the provisions of this clause shall have effect as if for the words five thousand rupees , the words two thousand five hundred rupees had been substituted : Provided further that this clause shall not apply to- (i) capital gains chargeable under the provisions of section 45 ; or (ii) receipts arising from business or the exercise of a profession or occupation ; or (iii) receipts by way of addition to the remuneration of an employee ;' 4. Substituted for clauses (4) and (4A) by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to their substitution, clause (4) was amended by the Finance Act, 1964, w.e.f. 1-4-1964. Clause (4A) was inserted by the Finance Act, 1964, w.e.f. 1-4-1965, subsequently amended by the Finance Act, 1968, w.e.f. 1-4-1969 and substituted by the Finance Act, 1982, w.e.f. 1-4-1982. 5. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. 6. Substituted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991. 7. Omitted by the Finance Act, 2005, w.e.f. 1-4-2006. Prior to its omission, second proviso, as inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2006, read as under : Provided further that nothing contained in this sub-clause shall apply to any income by way of interest paid or credited on or after the 1st day of April, 2005 to the Non-Resident (External) Account of such individual; 8. Inserted by the Finance Act, 1982, w.e.f. 1-4-1983. 9. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. 10. Substituted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier clause (5) was amended by the Finance Act, 1975, w.e.f. 1-4-1975, the Taxation Laws (Amendment) Act, 1970, w.r.e.f. 1-4-1962 and the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. 11. Omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999 ; Prior to its omission, clause (5A), as inserted by the Taxation Laws (Amendment) Act, 1984, w.r.e.f. 1-4-1982, read as under : (5A) in the case of an individual who is not a citizen of India and is a non-resident, who comes to India solely in connection with the shooting of a cinematograph film in India by the individual, firm or company referred to in clause (d) of the Explanation to clause (i) of sub-section (1) of section 9, any remuneration received by him for rendering any service in connection with such shooting ; 12. Omitted by the Finance Act, 2002, w.e.f. 1-4-2003; Prior to its omission, clause (5B), as inserted by the Finance Act, 1993, w.e.f. 1-4-1994, and later on amended by the Finance Act, 1999, w.e.f. 1-4-1999, read as under : '(5B) in the case of an individual who renders services as a technician in the employment (commencing from a date after the 31st day of March, 1993) of the Government or of a local authority or of any corporation set up under any special law or of any such institution or body established in India for carrying on scientific research as is approved for the purposes of this clause by the prescribed authority or in any business carried on in India and the individual was not resident in India in any of the four financial years immediately preceding the financial year in which he arrived in India and the tax on his income for such services chargeable under the head Salaries is paid to the Central Government by the employer [which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 (1 of 1956)], the tax so paid by the employer for a period not exceeding forty-eight months commencing from the date of his arrival in India : Provided that the Central Government may, if it considers it necessary or expedient in the public interest so to do, waive the condition relating to non-residence in India as specified in this clause in the case of any individual who is employed in India for designing, erection or commissioning of machinery or plant or supervising activities connected with such designing, erection or commissioning. Explanation .-For the purposes of this clause, technician means a person having specialised knowledge and experience in- (i) constructional or manufacturing operations, or in mining or in the generation of electricity or any other form of power, or (ii) agriculture, animal husbandry, dairy farming, deep sea fishing or ship building, or (iii) such other field as the Central Government may, having regard to availability of Indians having specialised knowledge and experience therein, the needs of the country and other relevant circumstances, by notification in the Official Gazette, specify, who is employed in India in a capacity in which such specialised knowledge and experience are actually utilised ;' 13. Omitted by the Finance Act, 2002, w.e.f. 1-4-2003. Prior to its omission, sub-clause (i), as substituted by the Taxation Laws (Amendment) Act, 1970, w.r.e.f. 1-4-1962 and amended by the Finance (No. 2) Act, 1977, w.r.e.f. 1-4-1972 and the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999, read as under : (i) subject to such conditions as the Central Government may prescribe, passage moneys or the value of any free or concessional passage received by or due to such individual- (a) from his employer, for himself, his spouse and children, in connection with his proceeding on home leave out of India ; (aa) [ * * * ] (b) from his employer or former employer for himself, his spouse and children, in connection with his proceeding to his home country out of India after retirement from service in India or after the termination of such service ; 14 . Substituted for sub-clauses (ii) to (v) by the Finance Act, 1988, w.e.f. 1-4-1989. 15. Omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999; Prior to its omission, sub-clause (via), as inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975, read as under : (via) the remuneration received by him as an employee of, or a consultant to, an institution or association or a body established or formed outside India solely for philanthropic purposes, for services rendered by him in India in connection with such purposes ; provided that such institution or association or body and the purposes for which his services are rendered in India are approved by the Central Government ; 16. Omitted by the Finance Act, 1993, w.e.f. 1-4-1993; Prior to omission, sub-clause (vii) was amended by the Finance Act, 1964, w.e.f. 1-4-1964, Finance Act, 1965, w.e.f. 1-4-1965 and Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971. 17. Omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999; Prior to its omission, sub-clause (viia), as inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971 and later on amended by the Direct Taxes (Amendment) Act, 1974, w.r.e.f. 1-4-1973, Finance Act, 1979, w.e.f. 1-6-1979, Finance Act, 1988, w.e.f. 1-4-1988, Finance Act, 1992, w.e.f. 1-6-1992 and Finance Act, 1993, w.e.f. 1-4-1993, read as under : '(viia) where such individual renders services as a technician in the employment of the Government or of a local authority or of any corporation set up under any special law or of any such institution or body established in India for carrying on scientific research as is approved for the purposes of this sub-clause by the prescribed authority or in any business carried on in India and the individual was not resident in India in any of the four financial years immediately preceding the financial year in which he arrived in India, the remuneration for such services due to or received by him, which is chargeable under the head Salaries , to the extent mentioned below, namely :- (I) where such services commence from a date after the 31st day of March, 1971 but before the 1st day of April, 1988,- (A) such remuneration due to or received by him during the period of twenty-four months commencing from the date of his arrival in India, in so far as such remuneration does not exceed an amount calculated at the rate of four thousand rupees per month, and where the tax on the excess, if any, of such remuneration for the period aforesaid over the amount so calculated is paid to the Central Government by the employer [which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 (1 of 1956)], also the tax so paid by the employer ; and (B) where he continues, with the approval of the Central Government obtained before the 1st day of October of the relevant assessment year, to remain in employment in India after the expiry of the period of twenty-four months aforesaid and the tax on his income chargeable under the head Salaries is paid to the Central Government by the employer [which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 (1 of 1956)], the tax so paid by the employer for a period not exceeding twenty-four months next following the expiry of the first-mentioned twenty-four months ; (II) where such services commence from a date after the 31st day of March, 1988 but before the 1st day of April, 1993, and tax on his income chargeable under the head Salaries is paid to the Central Government by the employer [which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 (1 of 1956)], the tax so paid by the employer for a period not exceeding forty-eight months commencing from the date of his arrival in India : Provided that the Central Government may, if it considers it necessary or expedient in the public interest so to do, waive the condition relating to non-residence in India as specified in this sub-clause in the case of any individual who is employed in India for designing, erection or commissioning of machinery or plant or supervising activities connected with such designing, erection or commissioning. Explanation .-For the purposes of this sub-clause, technician means a person having specialised knowledge and experience in- (i) constructional or manufacturing operations, or in mining or in the generation of electricity or any other form of power, or (ii) agriculture, animal husbandry, dairy farming, deep sea fishing or ship building, or (iii) such other field as the Central Government may, having regard to the availability of Indians having specialised knowledge and experience therein, the needs of the country and other relevant circumstances, by notification in the Official Gazette, specify, who is employed in India in a capacity in which such specialised knowledge and experience are actually utilised ;' 18. Omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999; Prior to its omission, sub-clause (ix), as inserted by the Finance Act, 1964, w.e.f. 1-4-1964, read as under : '(ix) any income chargeable under the head Salaries received by or due to him during the thirty-six months commencing from the date of his arrival in India for service rendered as a professor or other teacher in a University or other educational institution, and where any such individual continues to remain in employment in India after the expiry of the thirty-six months aforesaid and the tax on his income chargeable under the head Salaries is paid by the University or other educational institution concerned to the Central Government, the tax so paid for a period not exceeding twenty-four months following the expiry of the thirty-six months aforesaid, provided in either case the following conditions are fulfilled, namely :- (i) such individual was not resident in any of the four financial years immediately preceding the financial year in which he arrived in India ; and (ii) his contract of service is approved by the Central Government- (a) on or before the 1st day of October, 1964, in the case of a professor or other teacher whose service commenced before the 1st day of April, 1964 ; (b) before the commencement of his service or within one year of such commencement, in any other case ;' 19. Omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999; Prior to its omission, sub-clause (x), as inserted by the Finance Act, 1964, w.e.f. 1-4-1964, read as under : (x) any sum due to or received by him, during the twenty-four months commencing from the date of his arrival in India, for undertaking any research work in India, provided the following conditions are fulfilled, namely :- (a) the research work is undertaken in connection with a research scheme approved in this behalf by the Central Government on or before the 1st day of October of the relevant assessment year ; and (b) such sum is payable or paid directly or indirectly by the Government of a foreign State or any institution or association or other body established outside India ; 20. Inserted by the Finance Act, 1976, w.e.f. 1-4-1976. 21. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 22. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. 23. Substituted for and approved by the Central Government, the tax on such income is payable, under the terms of such agreement, by Government or the Indian concern to the Central Government, the tax so paid by the Finance Act, 1992, w.e.f. 1-6-1992. 24. Inserted by the Finance Act, 1988, w.e.f. 1-4-1988. 25. Inserted by the Finance Act, 1988, w.e.f. 1-4-1988. 26. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. 27. Inserted by the Finance Act, 1997, w.e.f. 1-4-1998. 28. Substituted for an agreement entered after the 31st day of March, 1997 (but before the 1st day of April, 1999) and approved by the Central Government in this behalf by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2006. Words 30th day of September, 2005 substituted for 31st day of March, 2005 by the Finance Act, 2005, w.e.f. 1-4-2006. Earlier the bracketed words were amended by the Finance Act, 1999, w.e.f. 1-4-2000. 29. Substituted for 30th day of September, 2005 by the Taxation Laws (Amendment) Act, 2005, w.e.f. 1-4-2006. 30. Substituted for 2006 by the Finance Act, 2006, w.e.f. 1-4-2007. 31. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. 32. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004. 33. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991. 34. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991. 35. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991. 36. Substituted for existing clause (10) by the Finance Act, 1974, w.e.f. 1-4-1975. Original clause was amended first by the Finance Act, 1972, w.e.f. 1-4-1973 and then by the Finance Act, 1974, with retrospective effect from 1-6-1972/1-4-1962. 37. Substituted for calculated on the basis of the average salary for the three years immediately preceding the year in which the gratuity is paid, subject to a maximum of *thirty-six thousand rupees or twenty months' salary so calculated, whichever is less by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. *Substituted for thirty thousand rupees by the Finance Act, 1983, w.r.e.f. 1-4-1982. 38. Substituted for shall not exceed *thirty-six thousand rupees by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. *Substituted for thirty thousand rupees by the Finance Act, 1983, w.r.e.f. 1-4-1982. 39. Substituted for shall not exceed *thirty-six thousand rupees by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. *Substituted for thirty thousand rupees by the Finance Act, 1983, w.r.e.f. 1-4-1982. 40. Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Original third and fourth provisos were inserted by the Finance Act, 1983, with retrospective effect from 1-4-1982. 41. Substituted for In this clause by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. 42. Inserted by the Finance (No. 2) Act, 1965, w.r.e.f. 1-4-1962. 43. Substituted for to the members of the Defence Services or to the employees of a State Government, a local authority by the Finance Act, 1974, w.r.e.f. 1-4-1962. 44. Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. 45. Inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997. 46. Inserted by the Finance Act, 1982, w.r.e.f. 1-4-1978. 47. Inserted by the Taxation Laws (Amendment) Act, 1984, with retrospective effect from 1-4-1978. 48. Inserted by the Taxation Laws (Amendment) Act, 1984, with retrospective effect from 1-4-1978. 49. Substituted for eight by the Finance Act, 1999, w.r.e.f. 1-4-1998. Earlier eight was substituted for six by the Direct Tax Laws (Amendment) Act, 1987, with retrospective effect from 1-7-1986. 50. Inserted by the Taxation Laws (Amendment) Act, 1984, with retrospective effect from 1-4-1978. 51. Substituted for or thirty thousand rupees, whichever is less by the Direct Tax Laws (Amendment) Act, 1987, w.r.e.f. 1-7-1986. 52. Substituted for shall not exceed thirty thousand rupees by the Direct Tax Laws (Amendment) Act, 1987, w.r.e.f. 1-7-1986. 53. Substituted for shall not exceed thirty thousand rupees by the Direct Tax Laws (Amendment) Act, 1987, w.r.e.f. 1-7-1986. 54. Third and fourth provisos omitted by the Direct Tax Laws (Amendment) Act, 1987, w.r.e.f. 1-7-1986. Prior to their omission, the third and fourth provisos were amended by the Taxation Laws (Amendment) Act, 1984, w.r.e.f. 1-4-1978. 55. (i) omitted by the Direct Tax Laws (Amendment) Act, 1987, w.r.e.f. 1-7-1986. 56. Clause (ii) omitted by the Direct Tax Laws (Amendment) Act, 1987, w.r.e.f. 1-7-1986. 57. Inserted by the Finance Act, 1975, w.e.f. 1-4-1976. 58. Substituted for the following by the Finance Act, 1985, w.e.f. 1-4-1986 : at the time of his retrenchment, to the extent such compensation does not exceed- (i) an amount calculated in accordance with the provisions of clause (b) of section 25F of the Industrial Disputes Act, 1947 (14 of 1947) ; or (ii) twenty thousand rupees, whichever is less. 59. Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. 60. Inserted by the Finance Act, 1992, w.e.f. 1-4-1992. 61. Inserted by the Finance Act, 2007, w.r.e.f. 1-4-2005. 62. Substituted by the Finance Act, 1993, w.e.f. 1-4-1993. Prior to substitution, clause (10C) was inserted by the Finance Act, 1987, w.e.f. 1-4-1987 and later substituted by the Finance Act, 1992, w.e.f. 1-4-1993. 63. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004. 64. Substituted for authority, by the Finance Act, 1994, w.e.f. 1-4-1995. 65. Inserted by the Finance Act, 1994, w.e.f. 1-4-1995. 66. Inserted by the Finance Act, 2001, w.e.f. 1-4-2001. 67. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002. 68. Inserted by the Finance Act, 2002, w.e.f. 1-4-2002. 69. Substituted for at the time of his by the Finance Act, 2003, w.e.f. 1-4-2004. 70. Substituted for voluntary retirement, in accordance with any scheme or schemes of voluntary retirement, to the extent such amount does not exceed five lakh rupees by the Finance Act, 2000, w.e.f. 1-4-2001. 71. Inserted by the Finance Act, 1994, w.e.f. 1-4-1995. 72. Words and such schemes in relation to companies referred to in sub-clause (ii) or co-operative societies referred to in sub-clause (v) are approved by the Chief Commissioner or, as the case may be, Director-General in this behalf omitted by the Finance Act, 2000, w.e.f. 1-4-2001. Earlier the quoted words were amended by the Finance Act, 1994, w.e.f. 1-4-1995. 73. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. 74. Substituted by the Finance Act, 2003, w.e.f. 1-4-2004. Prior to its substitution, clause ( 10D ), as inserted by the Finance (No. 2) Act, 1991, w.r.e.f. 1-4-1962, and later on amended by the Finance Act, 1995, w.e.f. 1-4-1996 and Finance (No. 2) Act, 1996, w.e.f. 1-10-1996, read as under : '( 10D ) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy other than any sum received under sub-section (3) of section 80DDA or under a Keyman insurance policy. Explanation .- For the purposes of this clause, Keyman insurance policy means a life insurance policy taken by a person on the life of another person who is or was the employee of the first mentioned person or is or was connected in any manner whatsoever with the business of the first mentioned person;' 75. Substituted for Explanation to sub-section (2A) of section 88 by the Finance Act, 2005, w.e.f. 1-4-2006. 76. Inserted vide Finance (No. 2) Act, 2009 w.e.f. 1st day of April, 2010 77. Inserted vide Finance Act, 2012 (w.e.f. 01-04-2013). 78. Substituted vide Finance Act, 2012 (w.e.f. 01-04-2013). Before it was read as:- assured: , 79. Inserted vide Finance Act, 2012 (w.e.f. 01-04-2013). 80. Substituted vide Finance Act, 2012 (w.e.f. 01-04-2013), Before it was read as:- this sub-clause 81. Substituted vide Finance Act, 2012 (w.e.f. 01-04-2013), Before it was read as:- this sub-clause 82. Explanation has been numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the following Explanation shall be inserted vide Finance Act, 2012 (w.e.f. 01-04-2013),. 83. Substituted vide Finance Act, 2013 w.e.f. April 1, 2014 , before it was read as the Foreign Exchange Regulation Act, 1973 (46 of 1973) . 84. Substituted vide Finance Act, 2013 w.e.f. April 1, 2014 , before it was read as the Foreign Exchange Regulation Act, 1973 (46 of 1973) . 85. Substituted vide Finance Act, 2013 w.e.f. April 1, 2014 , before it was read as the Foreign Exchange Regulation Act, 1973 (46 of 1973) . 86. Inserted vide Finance Act, 2013, w.e.f. 1st day of April, 2014 87. Inserted vide Finance Act, 2013, w.e.f. 1st day of April, 2014 88. Substituted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2013 , earlier it was read as, clause (q) 89. Inserted vide THE FINANCE ACT, 2018 w.e.f. 1st day of April, 2018 90. Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-04-2019 91. Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-04-2020 92. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 before it was read as convertible foreign exchange, to the extent such income accrued or arisen to, or is received in respect of units held by a non-resident 93. Inserted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 94. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2022 95. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2022 96. Substituted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2022 before it was read as (c) specified fund means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate,- (i) which has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992.); (ii) which located in any International Financial Services Centre; (iii) of which all the units are held by non-residents other than unit held by a sponsor or manager; 97. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2022 98. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2021 99. Numbered vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2021 before it was read as Explanation 100. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2021 101. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2021 102. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2021 103. Substituted vide Finance Act, 2022 w.e.f. 01-04-2023 before it was read as non-residents; or 104. Inserted vide Finance Act, 2022 w.e.f. 01-04-2023 105. Inserted vide Finance Act, 2022 w.e.f. 01-04-2023 106. Substituted vide Finance Act, 2022 w.e.f. 01-04-2023 before it was read as Explanation .-For the purposes of this clause, aircraft means an aircraft or a helicopter, or an engine of an aircraft or a helicopter, or any part thereof; 107. Inserted vide Finance Act, 2022 w.e.f. 01-04-2023 108. Inserted vide Finance Act, 2022 w.e.f. 01-04-2023 109. Inserted vide Finance Act, 2022 w.e.f. 01-04-2023 110. Inserted vide Finance Act, 2022 w.e.f. 01-04-2023 111. Inserted vide Finance Act, 2022 w.e.f. 01-04-2023 112. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 113. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2024 before it was read as, (4E) any income accrued or arisen to, or received by a non-resident as a result of transfer of non-deliverable forward contracts 104 [ or offshore derivative instruments or over-the-counter derivatives, ] entered into with an offshore banking unit of an International Financial Services Centre as referred to in sub-section (1A) of section 80LA, which fulfils such conditions as may be prescribed; 114. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2024 before it was read as, 107 [ (4G) any income received by a non-resident from portfolio of securities or financial products or funds, managed or administered by any portfolio manager on behalf of such non-resident, in an account maintained with an Offshore Banking Unit in any International Financial Services Centre, as referred to in sub-section (1A) of section 80LA, to the extent such income accrues or arises outside India and is not deemed to accrue or arise in India. Explanation .-For the purposes of this clause, portfolio manager shall have the same meaning as assigned to it in clause (z) of sub-regulation (1) of regulation (2) of the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021, made under the International Financial Services Centres Authority Act, 2019 (50 of 2019.); ] 115. Omitted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, or the Explanation to sub-section (2A) of section 88, as the case may be 116. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2024 before it was read as, Provided als o that the provisions of the fourth and fifth provisos shall not apply to any sum received on the death of a person: 117. Substituted vide THE FINANCE ACT, 2024 dated 15-02-2024 w.e.f. 01-04-2024 before it was read as, 2024 118. Substituted vide THE FINANCE ACT, 2024 dated 15-02-2024 w.e.f. 01-04-2024 before it was read as, 2024 119. Substituted vide THE FINANCE ACT, 2024 dated 15-02-2024 w.e.f. 01-04-2024 before it was read as, 2024 120. Re-Numbered vide Section 4 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 before it was read as, (I) 121. Inserted vide Section 4 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025