THE SIXTH SCHEDULE
(See sections 10 and 18 (1) (a))
Income not included in the total income
1. Agricultural income.
2. Subject to the provisions of sub-section (1) of section 9, any sum received by an individual as a member of a Hindu undivided family if,—
(a) the sum has been paid out of the income of the family; or
(b) in the case of any impartible estate, the sum has been paid out of the income of the impartible estate belonging to the family.
3. Any sum received by a person, being a participant in an unincorporated body, towards his share as per the agreement of association, in the total income of such body which is separately assessed.
4. The amount of family pension received by the widow or children or nominated heirs, as the case may be, of a member of the armed forces (including para-military forces) of the Union, if the death of such member has occurred in the course of operational duties, in such circumstances and subject to such conditions, as may be prescribed.
5. Any income arising to a foreign company, as the Central Government may, by notification, specify in this behalf, by way of royalty or fees for technical services received in pursuance of an agreement entered into with the Government for providing services in or outside India in projects connected with security of India.
6. Any income of the European Economic Community, (established by the treaty of Rome of 25th March, 1957) derived in India by way of interest, dividends or capital gains from investments made out of its funds under such scheme as the Central Government may, by notification specify in this behalf.
7. Any amount of interest payable—
(a) on securities held by the Issue Department of the Central Bank of Ceylon constituted under the Ceylon Monetary Law Act, 1949;
(b) to a bank incorporated in a country outside India and authorised to perform central banking functions in that country, on deposits by it with any scheduled bank, with the approval of the Reserve Bank of India;
(c) to the Nordic Investment Bank being a multilateral financial institution constituted by the Governments of Denmark, Finland, Iceland, Norway and Sweden, on a loan advanced by it to a project approved by the Central Government in terms of the Memorandum of Understanding entered into by the Central Government with that Bank on the 25th day of November, 1986;
(d) to European Investment Bank, on a loan granted by it in pursuance of the framework-agreement for financial co-operation entered into on the 25th day of November, 1993 by the Central Government with that Bank.
8. Income accruing to a person, if —
(a) the person is a member of a Scheduled Tribe as defined in clause (25) of article 366 of the Constitution; and
(b) the person resides in—
(i) the States of Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura,
(ii) any area specified in Part I or Part II of the Table appended to paragraph 20 of the Sixth Schedule to the Constitution,
(iii) the areas covered by notification No. TAD/R/35/50/109, dated the 23rd February, 1951, issued by the Governor of Assam under the proviso to
sub-paragraph (3) of Paragraph 20 of the Sixth Schedule to the Constitution as it stood immediately before the commencement of the North-Eastern Areas (Reorganisation) Act, 1971, or
(iv) the Ladakh region of the State of Jammu and Kashmir and the income of such person is in the nature of dividend or interest on securities or from any source in the States or areas specified in clause (b).
9. Income accruing from any source in the State of Sikkim or by way of dividend or interest on securities to a Sikkimese, other than a Sikkimese woman who, on or after the 1st day of April, 2008, marries an individual who is not a Sikkimese.
10. Any income, the nature and extent, accruing to a body or authority which is notified by the Central Government in this behalf if such body or authority—
(a) has been established or constituted or appointed under—
(i) a treaty or an agreement entered into by the Central Government with two or more countries; or
(ii) a convention signed by the Central Government; and
(b) is not established, constituted or appointed for the purposes of profit; and
11. The amount of accumulated balance in the account of an employee participating in an approved provident fund and any accretion thereto, to the extent provided in paragraph 8 of Part I of the Nineteenth Schedule.
12. Any payment from a provident fund to which the Provident Funds Act, 1925, applies or from any other provident fund set up by the Central Government and notified by it in this behalf.
13. Any payment from an approved superannuation fund made—
(a) in lieu of or in commutation of an annuity on his retirement at or after a specified age or on his becoming incapacitated prior to such retirement; or
(b) on the death of a beneficiary.
14. The amount of remuneration received by an individual who is not a citizen of India, if the following conditions are fulfilled, namely:—
(a) such individual is 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;
(b) 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; and
(c) the 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.
15. The amount received by an individual who is not a citizen of India, by way of remuneration as an employee of a foreign enterprise for services rendered by him during his stay in India, if the following conditions are fulfilled, namely:—
(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 financial year; and
(c) such remuneration is not liable to be deducted from the income of the employer chargeable under this Code.
16. The amount received by, or due to, any individual being a non-resident, who is not a citizen of India, by way of remuneration, if the following conditions are fulfilled, namely:—
(a) such remuneration is for services rendered in connection with the employment on a foreign ship; and
(b) his total stay in India does not exceed in the aggregate a period of ninety days in the financial year.
17. The amount of remuneration received by an individual who is not a citizen of India, if the following conditions are fulfilled, namely:—
(a) he is an employee of the Government of a foreign State during his stay in India; and
(b) his stay in India is in connection with his training in any establishment or office of, or in any undertaking owned by,—
(i) the Government;
(ii) any company in which the entire paid-up share capital is held 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;
(iii) any company which is a subsidiary of a company referred to in item (ii);
(iv) any corporation established by or under a Central, State or Provincial Act; or
(v) any society registered under the Societies Registration Act, 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.
18. Any amount received by an assessee under the Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 in excess of the amount, if any, allowed as a deduction in any financial year on account of any loss or damage caused to him by such disaster.
19. Any dividend declared, distributed or paid to a company or a non-resident, in respect of which dividend distribution tax has been paid under section 109.
20. Any income received from an equity oriented fund in respect of which tax on distribution of income has been paid under section 110.
21. Any amount of interest received on Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government.
22. Any income of a political party which is computed under the heads "Income from house property" or "Capital gains" or "Income from residuary sources" or any income by way of voluntary contributions received by it from any person, if—
(a) the political party keeps and maintains such books of account and other documents as would enable the Assessing Officer to properly deduce its income therefrom;
(b) the political party keeps and maintains a record of such contributions in excess of twenty thousand rupees, along with the name and address of the contributors;
(c) the accounts of such political party are audited by an accountant; and
(d) the treasurer of such political party or any other person authorised by that political party in this behalf submits a report under sub-section (3) of section 29C of the Representation of the People Act, 1951 for the financial year.
23. Any amount of interest on deposits in a Non-Resident (External) Account in any bank in India accruing to an individual, if he—
(a) is outside India in terms of clause (w) of section 2 of the Foreign Exchange Management Act, 1999; or
(b) has been permitted by the Reserve Bank of India to maintain the aforesaid account.
24. Any amount of interest payable by a scheduled bank, other than a co-operative bank, to a non-resident, on deposits in foreign currency where the acceptance of such deposits by the bank is approved by the Reserve Bank of India.
25. Any amount received by way of—
(a) daily allowance by any person by reason of his membership of Parliament or of any State Legislature or of any Committee thereof;
(b) an allowance by any person by reason of his membership of Parliament under the Members of Parliament (Constituency Allowance) Rules, 1986;
(c) constituency allowance by any person by reason of his membership of any State Legislature under the Act or rules made by the State concerned.
26. Any amount received, whether in cash or in kind—
(a) in pursuance of any award instituted by the Central Government or any State Government or instituted by any other body and approved by the Central Government in this behalf; or
(b) as a reward from the Central Government or any State Government for such purposes as may be approved by the Central Government in this behalf.
27. Any amount received by way of—
(a) pension by an individual, who had been in the service of the Central Government or State Government and has been awarded "Param Vir Chakra" or "Maha Vir Chakra" or "Vir Chakra" or such other gallantry award as the Central Government may, by notification, specify in this behalf;
(b) family pension by any member of the family of the individual referred to in clause (a).
28. Any sum received as compensation, from the multilateral fund of the Montreal Protocol on non-use of Substances that Deplete the Ozone layer under the United Nations Environment Programme, in accordance with the terms of agreement entered into by the Government of India.
29. Any income accruing to an individual outside India, in a financial year from a source other than a business controlled in or a profession set up in India, if the individual—
(a) has been a non-resident in India in nine out of ten financial years preceding that financial year; or
(b) has during the seven financial years preceding that financial year been in India for less than seven hundred and thirty days.
30. Any amount received from the Central Government, a State Government or a local authority by an individual or his legal heir, by way of compensation on account of any disaster, in excess of the amount, if any, allowed as a deduction in any financial year on account of any loss or damage caused by such disaster, to him or his legal heir.
31. Any amount of interest on bonds—
(a) issued by a local authority or by a State Pooled Finance Entity or a public sector company; and
(b) specified by the Central Government by notification.
32. Any amount of capital gain arising on account of the transfer of—
(a) agricultural land situated in a rural area;
(b) any personal effects; or
(c) Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government.
33. Gross rent in respect of any one palace in the occupation of a Ruler, if the annual value of the palace was exempt from income-tax before the commencement of the Constitution (Twenty-sixth Amendment) Act, 1971, by virtue of the provisions of the Merged States (Taxation Concessions) Order, 1949, or the Part B States (Taxation Concessions) Order, 1950, or, as the case may be, the Jammu and Kashmir (Taxation Concessions) Order, 1958.
34. Any income and amount thereof notified by the Central Government accruing to any person from any international sporting event held in India, if such event—
(a) is approved by the international body regulating the international sport relating to such event; and
(b) has participation of more than two countries; and
(c) is notified by the Central Government, for the purposes of this paragraph.
35. Any income of a venture capital company or a venture capital fund from investment in a venture capital undertaking.
36. Any income of a union or an association of such unions, which is computed under the head "Income from house property" or "Income from residuary sources" if—
(a) such union is registered under the Trade Unions Act, 1926; and
(b) it is formed primarily for the purpose of regulating the relations between workmen and employer or amongst workmen.
37. Any income received by an individual as a loan, either in lump sum or in instalment, in a transaction of reverse mortgage referred to in clause (v) of sub-section (1) of section 45.
38. Any allowance or perquisite paid or allowed outside India by the Government to a citizen of India for rendering service outside India.
39. Any payment from New Pension System Trust to an employee having an account with the Trust under the New Pension Scheme notified by the Central Government.
40. Any payment in commutation of pension received under any scheme of any employer, to the extent it does not exceed -
(a) in a case where 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.
41. Any payment received by the employee, from one or more employers, 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, to the extent the aggregate of such amount does not exceed the limit as may be prescribed.
42. Any payment received by the employee, from one or more employers, by way of gratuity—
(i) on his retirement; or
(ii) on his becoming incapacitated prior to such retirement; or
(iii) on termination of his employment; or
(iv) any gratuity received by the family on the death of the employee,
to the extent the aggregate of such amount does not exceed the limit as may be prescribed.
43. Any amount received by the employee, from one or more employers, in connection with termination of his service voluntary retirement or separation under any scheme framed for this purpose in accordance with such rules as may be prescribed, to the extent the aggregate of such amount does not exceed the limit as may be prescribed.
44. Any amount of compensation received by a workman under the Industrial Disputes Act, 1947 or under any other law for the time being in force or under any award or contract of service, at the time of his retrenchment in accordance with the provisions of clause (b) of section 25F of the said Act or five lakh rupees, whichever is less.
45. Any amount of scholarship review by a student to meet the cost of education.
46. Any sum received by any person from an insurer in respect of a life insurance policy upon death of the insured person.
47. Income of a co-operative society from such activities and to such extent as may be prescribed.
