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 ..... w, 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 [ *** ] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing 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 m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 previo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rade 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rage 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 85), 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 establish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral 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 Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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 exceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce 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 unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - - statute ..... X X X X Extracts X X X X X X X X Extracts X X X X
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