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TMI BlogIncomes not included in total income [Clause (1) to Clause (10D)]X X X X Extracts X X X X X X X X Extracts X X X X ..... ome 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 ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it, 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 Contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 [Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 defen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 998. 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 co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Excha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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