Section 10(11) to 10(17) - Incomes not included in total income [Clause (11) to Clause (17)] - Income-tax Act, 1961

Previous Next Incomes not included in total income [Clause (11) to Clause (17)] ( 11 ) any payment from a provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies 1 [ or from any other provident fund set up by the Central Government and notified by it in this behalf in the Official Gazette ]; 83 [Provided that the provisions of this clause shall not apply to the income by way of interest accrued during the previous year in the account of a person to the extent it relates to the amount or the aggregate of amounts of contribution made by that person exceeding two lakh and fifty thousand rupees in any previous year in that fund, on or after the 1st day of April, 2021 and computed in such manner as may be prescribed: Provided further that if the contribution by such person is in a fund in which there is no contribution by the employer of such person, the provisions of the first proviso shall have the effect as if for the words two lakh and fifty thousand rupees , the words five lakh rupees had been substituted; ] 74 [ (11A) any payment from an account, opened in accordance with the Sukanya Samriddhi Account Rules, 2014 made under the Government Savings Banks Act, 1873 (5 of 1873); ] (12) the accumulated balance due and becoming payable to an employee participating in a recognised provident fund, to the extent provided in rule 8 of Part A of the Fourth Schedule ; 84 [Provided that the provisions of this clause shall not apply to the income by way of interest accrued during the previous year in the account of a person to the extent it relates to the amount or the aggregate of amounts of contribution made by that person exceeding two lakh and fifty thousand rupees in any previous year in that fund, on or after the 1st day of April, 2021 and computed in such manner as may be prescribed: Provided further that if the contribution by such person is in a fund in which there is no contribution by the employer of such person, the provisions of the first proviso shall have the effect as if for the words two lakh and fifty thousand rupees , the words five lakh rupees had been substituted; ] 75 [ (12A) any payment from the National Pension System Trust to an 80 [ assessee ] on closure of his account or on his opting out of the pension scheme referred to in section 80CCD, to the extent it does not exceed 81 [ sixty per cent. ] of the total amount payable to him at the time of such closure or his opting out of the scheme; ] 79 [ (12B) any payment from the National Pension System Trust to an employee under the pension scheme referred to in section 80CCD, on partial withdrawal made out of his account in accordance with the terms and conditions, specified under the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013) and the regulations made thereunder, to the extent it does not exceed twenty-five per cent. of the amount of contributions made by him; ] 87 [ (12BA) any payment from the National Pension System Trust to an assessee, being the parent or guardian of a minor, under the pension scheme referred to in section 80CCD, on partial withdrawal made out of the account of the minor, as per the terms and conditions, specified under the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013)and the regulations made thereunder, to the extent it does not exceed twenty-five per cent. of the amount of contributions made by him; ] 85 [ (12C) any payment from the Agniveer Corpus Fund to a person enrolled under the Agnipath Scheme, or to his nominee. Explanation. For the purposes of this clause Agniveer Corpus Fund and Agnipath Scheme shall have the meanings respectively assigned to them in section 80CCH; ] 2 [ (13) any payment from an approved superannuation fund made- (i) on the death of a beneficiary; or (ii) to an employee 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 (iii) by way of refund of contributions on the death of a beneficiary; or (iv) by way of refund of contributions to an employee on his leaving the service in connection with which the fund is established otherwise than by retirement at or after a specified age or on his becoming incapacitated prior to such retirement, to the extent to which such payment does not exceed the contributions made prior to the commencement of this Act and any interest 76 [ thereon; or ];] 77 [ (v) by way of transfer to the account of the employee under a pension scheme referred to in section 80CCD and notified by the Central Government; ] 3 [ (13A) any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee, to such extent 4 [ * * * ] as may be prescribed having regard to the area or place in which such accommodation is situate and other relevant considerations. ] 5 [Explanation.- For the removal of doubts, it is hereby declared that nothing contained in this clause shall apply in a case where- (a) the residential accommodation occupied by the assessee is owned by him ; or (b) the assessee has not actually incurred expenditure on payment of rent (by whatever name called) in respect of the residential accommodation occupied by him ; ] 6 [ (14) (i) any such special allowance or benefit, not being in the nature of a perquisite within the meaning of clause (2) of section 17, specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit, 7 [ as may be prescribed ], to the extent to which such expenses are actually incurred for that purpose ; (ii) any such allowance granted to the assessee either to meet his personal expenses at the place where the duties of his office or employment of profit are ordinarily performed by him or at the place where he ordinarily resides, or to compensate him for the increased cost of living, 8 [ as may be prescribed and to the extent as may be prescribed ] :] 9 [Provided that nothing in sub-clause (ii) shall apply to any allowance in the nature of personal allowance granted to the assessee to remunerate or compensate him for performing duties of a special nature relating to his office or employment unless such allowance is related to the place of his posting or residence ; ] (14A) 10 [ *** ] (15) 11 [ (i) income by way of interest, premium on redemption or other payment on such securities, bonds, annuity certificates, savings certificates, other certificates issued by the Central Government and deposits as the Central Government may, by notification in the Official Gazette, specify in this behalf, subject to such conditions and limits as may be specified in the said notification ; ] 12 [ (iib) 13 [ in the case of an individual or a Hindu undivided family, ] interest on such Capital Investment Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf : ] 14 [Provided that the Central Government shall not specify, for the purposes of this sub-clause, such Capital Investment Bonds on or after the 1st day of June, 2002; ] 15 [( iic) in the case of an individual or a Hindu undivided family, interest on such Relief Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf ;] 16 [ (iid) interest on such bonds, as the Central Government may, by notification in the Official Gazette, specify, arising to- (a) a non-resident Indian, being an individual owning the bonds ; or (b) any individual owning the bonds by virtue of being a nominee or survivor of the non-resident Indian ; or (c) any individual to whom the bonds have been gifted by the non-resident Indian : Provided that the aforesaid bonds are purchased by a non-resident Indian in foreign exchange and the interest and principal received in respect of such bonds, whether on their maturity or otherwise, is not allowable to be taken out of India : Provided further that where an individual, who is a non-resident Indian in any previous year in which the bonds are acquired, becomes a resident in India in any subsequent year, the provisions of this sub-clause shall continue to apply in relation to such individual : Provided also that in a case where the bonds are encashed in a previous year prior to their maturity by an individual who is so entitled, the provisions of this sub-clause shall not apply to such individual in relation to the assessment year relevant to such previous year : 17 [Provided also that the Central Government shall not specify, for the purposes of this sub-clause, such bonds on or after the 1st day of June, 2002. ] Explanation .-For the purposes of this sub-clause, the expression non-resident Indian shall have the meaning assigned to it in clause (e) of section 115C ;] (iii) interest on securities held by the Issue Department of the Central Bank of Ceylon constituted under the Ceylon Monetary Law Act, 1949; 18 [ (iiia) interest payable to any bank incorporated in a country outside India and authorised to perform central banking functions in that country on any deposits made by it, with the approval of the Reserve Bank of India, with any scheduled bank. Explanation .-For the purposes of this sub-clause, scheduled bank shall have the meaning assigned to it in 19 [ clause (ii) of the Explanation to clause (viia) of sub-section (1) of section 36 ];] 20 [ (iiib) interest payable 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 ;] 21 [ (iiic) interest payable to the 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; ] (iv) interest payable- 22 [ (a) by Government or a local authority on moneys borrowed by it before the 1st day of June, 2001 from, or debts owed by it before the 1st day of June, 2001 to, sources outside India; ] (b) by an industrial undertaking in India on moneys borrowed by it under 23 [ a loan agreement entered into before the 1st day of June, 2001 with any such financial institution ] in a foreign country as may be approved in this behalf by the Central Government by general or special order ; (c) by an industrial undertaking in India on any moneys borrowed or debt incurred by it 24 [ before the 1st day of June, 2001 ] in a foreign country in respect of the purchase outside India of raw materials 25 [ or components ] or capital plant and machinery, 26 [ to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan or debt and its repayment .] 27 [ 28 [Explanation 1.]- For the purposes of this item, purchase of capital plant and machinery includes the purchase of such capital plant and machinery under a hire-purchase agreement or a lease agreement with an option to purchase such plant and machinery .] 29 [Explanation 2.- For the removal of doubts, it is hereby declared that the usance interest payable outside India by an undertaking engaged in the business of ship-breaking in respect of purchase of a ship from outside India shall be deemed to be the interest payable on a debt incurred in a foreign country in respect of the purchase outside India; ] 30 [ (d) by the Industrial Finance Corporation of India established by the Industrial Finance Corporation Act, 1948 (15 of 1948), or the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964), 31 [ or the Export-Import Bank of India established under the Export-Import Bank of India Act, 1981 (28 of 1981), ] 32 [ or the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987), ] 33 [ or the Small Industries Development Bank of India established under section 3 of the Small Industries Development Bank of India Act, 1989 (39 of 1989), ] or the Industrial Credit and Investment Corporation of India [ a company formed and registered under the Indian Companies Act, 1913 (7 of 1913) ] , on any moneys borrowed by it from sources outside India 34 [ before the 1st day of June, 2001 ] ,to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan and its repayment ;] 35 [ (e) by any other financial institution established in India or a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act), on any moneys borrowed by it from sources outside India 36 [ before the 1st day of June, 2001 ] under a loan agreement approved by the Central Government where the moneys are borrowed either for the purpose of advancing loans to industrial undertakings in India for purchase outside India of raw materials or capital plant and machinery or for the purpose of importing any goods which the Central Government may consider necessary to import in the public interest, to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan and its repayment; ] 37 [ (f) by an industrial undertaking in India on any moneys borrowed by it in foreign currency from sources outside India under a loan agreement approved by the Central Government 38 [ before the 1st day of June, 2001 ] having regard to the need for industrial development in India, to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan and its repayment; 39 [ (fa) by a scheduled bank 40 [ *** ] 41 [ to a non-resident or to a person who is not ordinarily resident within the meaning of sub-section (6) of section 6 ] on deposits in foreign currency where the acceptance of such deposits by the bank is approved by the Reserve Bank of India. 42 [ Explanation .-For the purposes of this item, the expression scheduled bank means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank; ] 43 [ (g) by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes, 44 [ being a company eligible for deduction under clause (viii) of sub-section (1) of section 36 ] on any moneys borrowed by it in foreign currency from sources outside India under a loan agreement approved by the Central Government 45 [ before the 1st day of June, 2003 ], to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan and its repayment .] Explanation .-For the purposes of 46 [ items (f) 47 [ ,(fa) ] and (g) ], the expression foreign currency shall have the meaning assigned to it in 73 [ the Foreign Exchange Management Act, 1999 (42 of 1999) ] ; ] 48 [ (h) by any public sector company in respect of such bonds or debentures and subject to such conditions, including the condition that the holder of such bonds or debentures registers his name and the holding with that company, as the Central Government may, by notification in the Official Gazette, specify in this behalf ;] 49 [ (i) by Government on deposits made by an employee of the Central Government or a State Government 50 [ or a public sector company ], in accordance with such scheme as the Central Government may, by notification in the Official Gazette, frame in this behalf, out of the moneys due to him on account of his retirement, whether on superannuation or otherwise. ] 51 [ 52 [Explanation 1].- For the purposes of this sub-clause, the expression industrial undertaking means any undertaking which is engaged in- (a) the manufacture or processing of goods; or 53 [ (aa) the manufacture of computer software or recording of programme on any disc, tape, perforated media or other information device; or ] (b) the business of generation or distribution of electricity or any other form of power; or 54 [ (ba) the business of providing telecommunication services; or ] (c) mining; or (d) the construction of ships; or 55 [ (da) the business of ship-breaking; or ] 56 [ (e) the operation of ships or aircrafts or construction or operation of rail systems .]] 57 [Explanation 1A. -For the purposes of this sub-clause, the expression interest shall not include interest paid on delayed payment of loan or on default if it is in excess of two per cent per annum over the rate of interest payable in terms of such loan. ] 58 [Explanation 2.- For the purposes of this clause, the expression interest includes hedging transaction charges on account of currency fluctuation ;] 59 [ (v) interest on- (a) securities held by the Welfare Commissioner, Bhopal Gas Victims, Bhopal, in the Reserve Bank s SGL Account No. SL/DH 048; (b) deposits for the benefit of the victims of the Bhopal gas leak disaster held in such account, with the Reserve Bank of India or with a public sector bank, as the Central Government may, by notification in the Official Gazette, specify, whether prospectively or retrospectively but in no case earlier than the 1st day of April, 1994 in this behalf. Explanation .-For the purposes of this sub-clause, the expression public sector bank shall have the meaning assigned to it in the Explanation to clause (23D); ] 60 [( vi) interest on Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 78 [ or deposit certificates issued under the Gold Monetisation Scheme, 2015 ]notified by the Central Government ;] 61 [ (vii) interest on bonds- (a) issued by a local authority or by a State Pooled Finance Entity; and (b) specified by the Central Government by notification in the Official Gazette. Explanation .-For the purposes of this sub-clause, the expression State Pooled Finance Entity shall mean such entity which is set up in accordance with the guidelines for the Pooled Finance Development Scheme notified by the Central Government in the Ministry of Urban Development; ] 62 [ (viii) any income by way of interest received by a non-resident or a person who is not ordinarily resident, in India on a deposit made on or after the 1st day of April, 2005, in an Offshore Banking Unit referred to in clause (u) of section 2 of the Special Economic Zones Act, 2005; ] 82 [ (ix) any income by way of interest payable to a non-resident by a unit located in an International Financial Services Centre in respect of monies borrowed by it on or after the 1st day of September, 2019. Explanation .-For the purposes of this sub-clause,- (a) International Financial Services Centre shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005.); (b) unit shall have the meaning assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005.); ] 63 [ (15A) any payment made, by an Indian company engaged in the business of operation of aircraft, to acquire an aircraft or an aircraft engine (other than a payment for providing spares, facilities or services in connection with the operation of leased aircraft) on lease from the Government of a foreign State or a foreign enterprise under an agreement 64 [ 65 [ , not being an agreement entered into between the 1st day of April, 1997 and the 31st day of March, 1999, ] and ] approved by the Central Government in this behalf : 66 [Provided that nothing contained in this clause shall apply to any such agreement entered into on or after the 67 [ 1st day of April, 68 [ 2007 ]].] Explanation .-For the purposes of this clause, the expression foreign enterprise means a person who is a non-resident; ] 86 [ (15B) any income of a foreign company from lease rentals, by whatever name called, of cruise ships, received from a specified company which operates such ship or ships in India, where such foreign company and the specified company are subsidiaries of the same holding company, and such income is received or accrues or arises in India for any relevant assessment year beginning on or before the 1st day of April, 2030. Explanation . For the purposes of this clause, (a) specified company means any company, other than a domestic company which operates cruise ships in India and opts to pay tax in accordance with the provisions of section 44BBC; (b) holding company , in relation to a foreign company or a specified company, means a company of which such companies are subsidiary companies; (c) subsidiary company or subsidiary , in relation to a holding company, means a company in which the holding company exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies. ] (16) scholarships granted to meet the cost of education; 69 [ (17) any income by way of- (i) daily allowance received by any person by reason of his membership of Parliament or of any State Legislature or of any Committee thereof; 70 [ * * * ] 71 [ (ii) any allowance received by any person by reason of his membership of Parliament under the Members of Parliament (Constituency Allowance) Rules, 1986; 72 [ (iii) any constituency allowance received by any person by reason of his membership of any State Legislature under any Act or rules made by that State Legislature; ]] ******************* NOTES:- 1. Inserted vide Third Schedule of the Finance Act, 1968 w.e.f. 01-04-1969 2. Substituted vide Section 6 of the Finance Act, 1965 w.e.f. 01-04-1962 before it was read as, (13) any payment from an approved superannuation fund made on the death of a beneficiary or in lieu of or in commutation of an annuity, or by way of refund of contributions on the death of a beneficiary; 3. Inserted vide Section 3 of the Direct Taxes (Amendment) Act, 1964 w.e.f. 06-10-1964 4. Omitted vide Section 3 of the Finance Act, 1986 w.e.f. 01-04-1987 before it was read as, (not exceeding four hundred rupees per month) Earlier , Amended vide Section 3 of the Finance Act, 1975 w.e.f. 01-04-1975 . 5. Inserted vide Section 4 of the Taxation Laws (Amendment) Act, 1984 w.e.f. 01-04-1976 6. Substituted vide Section 6 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 Explanation : For the removal of doubts, it is hereby declared that any allowance granted to the assessee to meet his personal expenses at the place where the duties of his office or employment of profit are ordinarily performed by him or at the place where he ordinarily resides shall not be regarded, for the purposes of this clause, as a special allowance granted to meet expenses wholly, necessarily and exclusively incurred in the performance of such duties; Prior to its substitution, Inserted vide Section 3 of the Finance Act, 1975 w.e.f. 01-04-1962 7. Substituted vide Section 4 of the Finance Act, 1995 w.e.f. 01-07-1995 before it was read as, as the Central Government may, by notification in the Official Gazette, specify 8. Substituted vide Section 4 of the Finance Act, 1995 w.e.f. 01-07-1995 before it was read as, as the Central Government may, by notification in the Official Gazette, specify, to the extent specified in the notification 9. Inserted vide Section 4 of the Direct Tax Laws (Second Amendment) Act, 1989 w.e.f. 01-04-1989 10. Omitted vide Section 4 of the Finance Act, 2002 w.e.f. 01-04-2003 before it was read as, (14A) any income received by a public financial institution as exchange risk premium from any person borrowing foreign currency from such institution, provided the amount of such premium is credited by such institution to a fund specified under clause (23E). Explanation .-For the purposes of this clause,- (i) the expression public financial institution shall have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956) ; (ii) the expression exchange risk premium means a premium paid by a person borrowing foreign currency from a public financial institution to cover the risk which may be borne by such institution on account of fluctuations in exchange rate of foreign currencies borrowed by such institution; Prior to its omission, clause (14A), as Inserted vide Section 4 of the Finance Act, 1989 w.e.f. 01-04-1989 11. Substituted sub-clauses (i), (ia), (ib), (ii) and (iia) vide Section 6 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, (i) monthly payment on the 15 Year Annuity Certificates issued by or under the authority of the Central Government or such other annuity certificates issued by or under the authority of that Government as that Government may, by notification in the Official Gazette, specify in this behalf, to the extent to which the amounts of the certificates do not exceed in each case the maximum amount which is permitted to be invested therein; (ia) annual payment on National Defence Gold Bonds, 1980 ; (ib) premium on the redemption of Special Bearer Bonds, 1991 (ii) interest on Treasury Savings Deposit Certificates, Post Office Cash Certificates, Post Office National Savings Certificates, National Plan Certificates, Twelve Year National Plan Savings Certificates and such other certificates issued by the Central Government as that Government may, by notification in the Official Gazette, specify in this behalf, interest on deposits in Post Office Savings Banks and bonus in respect of deposits under the Post Office Cumulative Time Deposit Rules, 1981, to the extent to which the amounts of such certificates or deposits do not exceed in each case the maximum amount which is permitted to be invested or deposited therein; Provided that where in the case of an assessee the interest on deposits in a Public Account of the nature referred to in item 6 in the Table below rule 4 of the Post Office Savings Account Rules, 1981 exceeds two thousand two hundred and fifty rupees, the amount of interest on such deposits that shall not be included in the total income of the assessee under this sub-clause shall be two thousand two hundred and fifty rupees; (iia) interest on fixed deposits under any scheme framed by the Central Government and notified by it in this behalf in the Official Gazette, to the extent to which the amounts of such deposits do not exceed, in each case, the maximum amount which is permitted to be deposited therein; Earlier, Amended vide Section 3 of the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1965 w.e.f. 04-12-1965 And was Amended vide Section 3 of the Finance (No. 2) Act, 1965 w.e.f. 11-09-1965 And was Amended vide Schedule 3 of the Finance Act, 1968 w.e.f. 01-04-1969 And was Amended vide Section 3 of the Finance Act, 1979 w.e.f. 01-04-1980 And was Amended vide Section 5 of the Special Bearer Bonds (Immunities Exemptions) Act, 1981 w.e.f. 12-01-1981 And was Amended vide Section 4 of the Finance Act, 1987 w.e.f. 01-04-1983 12. Inserted vide Section 4 of the Finance Act, 1982 w.e.f. 01-04-1983 13. Inserted vide Section 5 of the Finance Act, 1983 w.e.f. 01-04-1983 14. Inserted vide Section 4 of the Finance Act, 2002 w.e.f. 01-04-2003 15. Inserted vide Section 4 of the Finance Act, 1988 w.e.f. 01-04-1989 16. Inserted vide Section 4 of the Direct Tax Laws (Amendment) Act, 1989 w.e.f. 01-04-1989 17. Inserted vide Section 4 of the Finance Act, 2002 w.e.f. 01-04-2003 18. Inserted vide Section 4 of the Finance Act, 1985 w.e.f. 01-04-1985 19. Substituted vide Section 126 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, the Explanation to clause (iii) of sub-section (5) of section 11 20. Inserted vide Section 2 of the Taxation Laws (Amendment) Act, 2003 w.e.f. 01-04-2001 21. Inserted vide Section 5 of the Finance (No. 2) Act, 2004 w.e.f. 01-04-2005 22. Substituted vide Section 5 of the Finance Act, 2001 w.e.f. 01-04-2002 before it was read as, (a) by Government or a local authority on moneys borrowed by it from, or debts owed by it to, sources outside India ; Earlier, Substituted vide Section 5 of the Finance Act, 1983 w.e.f. 01-04-1983 before it was read as, (a) by Government or a local authority on moneys borrowed by it from sources outside India; 23. Substituted vide Section 5 of the Finance Act, 2001 w.e.f. 01-04-2002 before it was read as, a loan agreement entered into with any such financial institution 24. Inserted vide Section 5 of the Finance Act, 2001 w.e.f. 01-04-2002 25. Inserted vide Section 5 of the Finance Act, 1983 w.e.f. 01-04-1983 26. Substituted vide Section 6 of the Finance Act, 1964 w.e.f. 01-04-1964 before it was read as, in any case where the loan or debt is approved by the Central Government, having regard to its terms generally and in particular to the terms of its repayment 27. Inserted vide Section 5 of the Finance Act, 1983 w.e.f. 01-04-1983 28. Numbered vide Section 2 of the Taxation Laws (Amendment) Act, 2003 w.e.f. 01-04-1962 29. Inserted vide Section 2 of the Taxation Laws (Amendment) Act, 2003 w.e.f. 01-04-1962 30. Inserted vide Section 2 of the Direct Taxes (Amendment) Act, 1974 w.e.f. 01-04-1973 31. Inserted vide Section 5 of the Finance Act, 1983 w.e.f. 01-04-1983 32. Inserted vide Section 5 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1991 33. Inserted vide Section 4 of the Finance Act, 1992 w.e.f. 01-04-1992 34. Inserted vide Section 5 of the Finance Act, 2001 w.e.f. 01-04-2002 35. Inserted vide Section 2 of the Direct Taxes (Amendment) Act, 1974 w.e.f. 01-04-1973 36. Inserted Section 5 of the Finance Act, 2001 w.e.f. 01-04-2002 37. Inserted vide Section 5 of the Finance Act, 1976 w.e.f. 01-06-1976 38. Inserted Section 5 of the Finance Act, 2001 w.e.f. 01-04-2002 39. Inserted vide Section 5 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1991 40. Omitted vide Section 4 of the Finance Act, 2005 w.e.f. 01-04-2006 before it was read as, before the 1st day of April, 2005 Earlier, Inserted vide Section 5 of the Finance (No. 2) Act, 2004 w.e.f. 01-04-2006 41. Inserted vide Section 3 of the Finance Act, 1993 w.e.f. 01-04-1993 42. Substituted vide Section 6 of the Finance Act, 2007 w.e.f. 01-04-2007 before it was read as, Explanation .-For the purposes of this item, the expression scheduled bank shall have the meaning assigned to it in clause (ii) of the Explanation to clause (viia) of sub-section (1) of section 36; 43. Inserted vide Section 5 of the Finance Act, 1983 w.e.f. 01-04-1983 44. Substituted vide Section 5 of the Finance Act, 2000 w.e.f. 01-04-2000 before it was read as, being a company approved by the Central Government for the purposes of clause (viii) of sub-section (1) of section 36 45. Inserted vide Section 6 of the Finance Act, 2003 w.e.f. 01-04-2004 46. Substituted vide Section 5 of the Finance Act, 1983 w.e.f. 01-04-1983 before it was read as, this item 47. Inserted vide Section 5 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1991 48. Inserted vide Section 4 of the Finance Act, 1987 w.e.f. 01-04-1987 49. Inserted vide Section 4 of the Finance Act, 1989 w.e.f. 01-04-1990 50. Inserted vide Section 5 of the Finance Act, 1990 w.e.f. 01-04-1991 51. Inserted vide Section 5 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1991 52. Re-Numbered vide Section 6 of the Finance Act, 1999 w.e.f. 01-04-2000 before it was read as, Explanation 53. Inserted vide Section 5 of the Finance (No. 2) Act, 1998 w.e.f. 01-04-1999 54. Inserted vide Section 3 of the Finance Act, 1997 w.e.f. 01-04-1998 55. Inserted vide Section 2 of the Taxation Laws (Amendment) Act, 2003 w.e.f. 01-04-1991 56. Substituted vide Section 4 of the Finance (No. 2) Act, 1996 w.e.f. 01-04-1997 before it was read as, (e) the operation of ships or aircrafts; Prior to its substitution, clause (e), as Inserted vide Section 5 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1991 57. Substituted vide Section 5 of the Finance Act, 2001 w.e.f. 01-04-2002 before it was read as, Explanation 1A.- For the purposes of this sub-clause, the expression interest shall not include interest paid on delayed payment of loan or on default. Earlier , Inserted vide Section 5 of the Finance Act, 2000 w.e.f. 01-04-2001 58. Inserted vide Section 6 of the Finance Act, 1999 w.e.f. 01-04-2000 59. Substituted vide Section 4 of the Finance Act, 1995 w.e.f. 01-04-1995 before it was read as, (v) interest on securities held by the Welfare Commissioner, Bhopal Gas Victims, Bhopal, in Reserve Bank s SGL Account No. SL/DH 048; Prior to its substitution, sub-clause (v), as Inserted vide Section 5 of the Finance Act, 1990 w.e.f. 01-04-1989 And later Amended vide Section 3 of the Finance Act, 1993 w.e.f. 02-11-1992 60. Inserted vide Section 6 of the Finance Act, 1999 w.e.f. 01-04-2000 61. Substituted vide Section 6 of the Finance Act, 2007 w.e.f. 01-04-2008 before it was read as, ( vii ) interest on bonds- ( a ) issued by a local authority; and ( b ) specified by the Central Government by notification in the Official Gazette; Earlier, Inserted vide Section 5 of the Finance Act, 2000 w.e.f. 01-04-2001 62. Inserted vide Second Schedule of the Special Economic Zones Act, 2005 w.e.f. 10-02-2006 63. Substituted vide Section 4 of the Finance Act, 1995 w.e.f. 01-04-1996 before it was read as, (15A) any payment made, by an Indian company engaged in the business of operation of aircraft, to acquire an aircraft on lease from the Government of a foreign State or a foreign enterprise under an agreement approved by the Central Government in this behalf. Explanation .-For the purpose of this clause, foreign enterprise means a person who is a non-resident; Prior to its substitution, clause (15A), as Inserted vide Section 2 of the Income-tax (Amendment) Act, 1989 w.e.f. 24-01-1989 64. Inserted vide Section 3 of the Finance Act, 1997 w.e.f. 01-04-1998 65. Substituted vide Section 6 of the Finance Act, 1999 w.e.f. 01-04-2000 before it was read as, entered before the 1st day of April, 1997 66. Inserted vide Section 5 of the Finance (No. 2) Act, 2004 w.e.f. 01-04-2006 67. Substituted vide Section 2 of the Taxation Laws (Amendment) Act, 2005 w.e.f. 01-04-2006 before it was read as, 1st day of October, 2005 Earlier, Substituted vide Section 4 of the Finance Act, 2005 w.e.f. 01-04-2006 before it was read as, 1st day of April, 2005 68. Substituted vide Section 4 of the Finance Act, 2006 w.e.f. 01-04-2007 before it was read as, 2006 69. Substituted vide Section 3 of the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1986 w.e.f. 01-04-1986 before it was read as, (17) any daily allowance received by any person by reason of his membership of Parliament or of any State Legislature or of any Committee thereof or any allowance received by a member of either House of Parliament under the Members of Parliament (Additional Facilities) Rules, 1975; Prior to its substitution, Amended vide Section 5 of the Finance Act, 1976 w.e.f. 01-04-1976 70. Omitted vide Section 4 of the Finance Act, 1987 w.e.f. 01-04-1986 before it was read as, and 71. Substituted vide Section 4 of the Finance Act, 1987 w.e.f. 01-04-1986 before it was read as, (ii) all other allowances not exceeding rupees twelve hundred and fifty per month in the aggregate received by any person by reason of his membership of Parliament or of any Committee thereof, or all other allowances not exceeding rupees six hundred per month in the aggregate received by any person by reason of his membership of any State Legislature or any Committee thereof, which the Central Government may, by notification in the Official Gazette, specify in this behalf; Earlier , Amended vide Section 3 of the Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986 w.e.f. 01-04-1986 72. Substituted vide Section 4 of the Finance Act, 2006 w.e.f. 01-04-2007 before it was read as, (iii) all other allowances not exceeding two thousand rupees per month in the aggregate received by any person by reason of his membership of any State Legislature or of any Committee thereof, which the Central Government may, by notification* in the Official Gazette, specify in this behalf; Earlier , Amended vide Section 3 of the Finance Act, 1997 w.e.f. 01-04-1998 73. Substituted vide Section 4 of the Finance Act, 2013 w.e.f. 01-04-2013 before it was read as, the Foreign Exchange Regulation Act, 1973 (46 of 1973) . 74. Inserted vide Section 7 of the Finance Act, 2015 w.e.f. 01-04-2015 75. Inserted vide Section 7 of the Finance Act, 2016 w.e.f. 01-04-2017 76. Substituted vide Section 7 of the Finance Act, 2016 w.e.f. 01-04-2017 before it was read as, thereon 77. Inserted vide Section 7 of the Finance Act, 2016 w.e.f. 01-04-2017 78. Inserted vide Section 7 of the Finance Act, 2016 w.e.f. 01-04-2016 79. Inserted vide Section 6 of the Finance Act, 2017 w.e.f. 01-04-2018 80. Substituted vide Section 5 of the Finance Act, 2018 w.e.f. 01-04-2019 before it was read as, employee 81. Substituted vide Section 6 of the Finance (No. 2) Act, 2019 w.e.f. 01-04-2020 before it was read as forty per cent. 82. Inserted vide Section 6 of the Finance (No. 2) Act, 2019 w.e.f. 01-04-2020 83. Inserted vide Section 6 of the Finance Act, 2021 dated 28-03-2021 w.e.f. 01-04-2022 84. Inserted vide Section 6 of the Finance Act, 2021 dated 28-03-2021 w.e.f. 01-04-2022 85. Inserted vide Section 5 of the Finance Act, 2023 dated 31-03-2023 w.e.f. 01-04-2023 86. Inserted vide Section 4 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 87. Inserted vide Section 6 of the Finance Act, 2025 dated 29-03-2025 w.e.f. 01-04-2026