Income Tax Act

Official PDF pages 596–600

SOURCE PDF PAGE 596
Sl.
No.
Income not to be
included in total
income
Conditions
A   B   C
5.   Any payment from any
account opened as per
the Sukanya Samrid -
dhi Account Scheme,
2019 made under the
Government   Savings
Promotion Act, 1873
(5 of 1873).
Nil.
6.   Any payment from the
National Pension Sys -
tem Trust.
( a )   Such payment is on closure of account of the
assessee or on his opting out of the pension
scheme referred to in section 124; and
( b )   the said payment does not exceed 60% of
the total amount payable at the time of such
closure or his opting out of the scheme.
7.   Any payment from the
Agniveer   Corpus Fund
to a person enrolled
under   the   Agnipath
Scheme or to his nom -
inee.
Nil.
8.   Any payment from an
approved superannua -
tion fund.
Such payment is made—
( a )   on the death of a beneficiary;
( b )   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 incapaci -
tated prior to such retirement;
( c )   by way of refund of contributions on the
death of a beneficiary;
( d )   by way of refund of contributions to an em -
ployee 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 thereon; or
( e )   by way of transfer to the account of the
employee under a pension scheme referred
to in section 124 and notified by the Central
Government in this behalf.
9   Scholarships.   Such scholarship is granted to meet the cost of
education.

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SOURCE PDF PAGE 597
Sl.
No.
Income not to be
included in total
income
Conditions
A   B   C
10.   Any   payment   made,
whether in cash or in
kind for any award or
reward.
Such payment is made––
( a )   in pursuance of any award instituted in the
public interest 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 by the Central Government or
any State Government for such purposes as
may be approved by the Central Government
in this behalf in public interest.
11.   Income by way of in -
terest,   premium   on
redemption or other
payment on such secu -
rities, bonds, annuity
certificates,   savings
certificates, other cer -
tificates issued by the
Central   Government
and deposits.
Such certificates and deposits are notified by the
Central Government, subject to such conditions
and limits as specified therein.
12.   Interest on Gold De -
posit   Bonds   issued
under   the   Gold   De -
posit   Scheme,   1999
or deposit certificates
issued under the Gold
Monetisation Scheme,
2015 notified by the
Central Government.
Nil .
13.   Interest on bonds is -
sued by a local author -
ity or by a State Pooled
Finance Entity.
As specified by the Central Government, by no -
tification.
14.   Any   income   arising
from the transfer of
a   capital   asset,   be -
ing a unit of the Unit
Scheme, 1964 referred
to in Schedule I to the
Unit   Trust   of   India
(Transfer of Undertak -
ing and Repeal) Act,
2002 (58 of 2002).
The transfer of such asset takes place on or after
the 1st April, 2002.

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SOURCE PDF PAGE 598
Sl.
No.
Income not to be
included in total
income
Conditions
A   B   C
15.   Any   payment   from
the National Pension
System Trust received
by an assessee, who is
a subscriber to the Uni -
fied Pension Scheme;
( a )   such payment received at the time of his
superannuation or voluntary retirement or re -
tirement under rule 56( j ) of the Fundamental
Rules [which is not treated as penalty under
the Central Civil Services (Classification,
Control and Appeal) Rules, 1965]; and
( b )   the said payment does not exceed 60% of the
Individual corpus, as defined in notification
number   FX-1/3/2024-PR   of   the   Depart -
ment of Financial Services, dated the 24th
January, 2025.
16.   Any sum received as
“lump   sum   amount”
from the National Pen -
sion System Trust by an
assessee being a sub -
scriber to the Unified
Pension Scheme.
The said “lump sum amount” is as per clause ( vi )
of Para 2, of the Notification number FX-1/3/2024-
PR of the Department of Financial Services, dated
the 24th January, 2025.
17.   Any   income   covered
under section 10( 15 )
( iii ) or ( 15 )( iv )( c ), ( 15 )
( iv )( d ), ( 15 )( iv )( e ), ( 15 )
( iv )( f ),   ( 15 )( iv )( g )   or
( 15 )( iv )( h ) or ( 36 ) of
the   Income-tax   Act,
1961 (43 of 1961), sub -
ject to the conditions as
provided therein.
Nil .
Note 1:   For the purposes of Sl. No. 2,––
( a )   “actual capital sum assured” shall have the meaning assigned to it in paragraph
2(2) of Schedule XV;
( b )   “International Financial Services Centre Insurance Office” shall have the same
meaning as assigned to it* regulation 3(1)( k ) of the International Financial Ser -
vices Centre Authority (Registration of Insurance Business) Regulations, 2021,
made under the International Financial Services Centres Authority Act, 2019 (50
of 2019);
( c )   “Keyman insurance policy” means a life insurance policy––
( i )   taken by a person on the life of another person;
( ii )   such person is or was the employee of the first-mentioned person or is or
was connected in any manner with the business of the first-mentioned
person; and

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SOURCE PDF PAGE 599
( iii )   includes such policy which has been assigned to a person at any time during
the term of the policy, with or without any consideration;
( d )   “premium to sum assured ratio” shall mean the highest percentage of annual
premium payable to the actual capital sum assured, during the term of the policy;
( e )   “special policy” means any policy issued on life of any person, who is—
( i )   a person with disability or a person with severe disability as referred to in
section 154; or
( ii )   suffering from disease or ailment as specified in the rules made under
section 128;
( f )   “United Linked Insurance Policy” means a unit linked life insurance policy,––
( i )   which has components of both investment and insurance; and
( ii )   is linked to a unit as defined in regulation 3( ee ) of the Insurance
Regulatory   and   Development   Authority   of   India   (Unit   Linked
Insurance Products) Regulations, 2019 made under the Insurance Regula -
tory and Development Authority Act, 1999 (41 of 1999);
Note 2:   For the purposes of Sl. No. 7, the expression “ Agniveer   Corpus Fund” and
“ Agnipath   Scheme” shall have the meanings respectively assigned to them in section 125.
Note 3:   For the purposes of Sl. No. 11, the expression “interest” includes hedging transaction
charges on account of currency fluctuation.
Note 4:   For the purposes of Sl. No. 13, the expression “State Pooled Finance Entity” means
such entity which is set up as per the guidelines for the Pooled Finance Development Scheme
notified by the Central Government in the Ministry of Housing and Urban Affairs.
SCHEDULE III
[ See   section 11]
INCOME NOT TO BE INCLUDED IN TOTAL
INCOME OF ELIGIBLE PERSONS
In computing the total income of a tax year of any eligible person mentioned in
column C of the Table below, the income mentioned in column B of the said Table
shall not be included, subject to the conditions mentioned in column D of the said
Table, and the expressions used in columns B to D therein shall have the meanings
respectively assigned to them in the Notes below the said Table:
TABLE
Sl.
No.
Income not to be
included in total
income
Eligible persons   Conditions
A   B   C   D
1.   Any sum received by
a member from Hin -
du undivided family.
An individual who is
a member of a Hindu
undivided family.
( a )   Such sum is not cov -
ered under the provi -
sions of section 99(3)
and (4); and
( b )   such   sum   has   been   paid
out of––

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SOURCE PDF PAGE 600
Sl.
No.
Income not to be
included in total
income
Eligible persons   Conditions
A   B   C   D
( i )   the income of the
family; or
( ii )   the   income   of
the estate belong -
ing to the family,
in   the   case   of
any   impartible
estate.
2.   Any sum received by
a   partner   towards
his share in the total
income of the firm.
A person who is a part -
ner of a firm separately
assessed as such.
The sum received as share
in profit is as per the prof -
it-sharing ratio provided in
the partnership deed.
3.   Any amount received
or receivable from
the Central Govern -
ment or a State Gov -
ernment or a local
authority by way of
compensation on ac -
count of any disaster.
Any individual or his
legal heir.
No deduction of this amount
was allowed earlier under
this Act on account of any
loss or damage caused by
such disaster to such in -
dividual or his legal heir.
4.   Any payment from
the National Pension
System Trust under
the pension scheme
referred to in section
124.
( i )   Any employee; or
( ii )   an assessee, be -
ing the guardian
or   parent   of   a
minor.
( a )   Such payment is on
partial   withdrawal
made out of his ac-
count or the account
of the minor, as the
case may be, as per the
terms and conditions
specified   under   the
Pension Fund Regu -
latory   and   Develop -
ment   Authority   Act,
2013 (23 of 2013) and
the regulations made
thereunder; and
( b )   exclusion   shall   not
exceed   25%   of   the
amount of contribu -
tions made by him.
5.   Daily allowance re -
ceived.
Any person by reason
of his membership of
Parliament or of any
Nil .