Income Tax Act

Official PDF pages 616–620

SOURCE PDF PAGE 616
referred to as the “Register of Sikkim Subjects”), immediately before the 26th
April, 1975;
( ii )   an individual, whose name is included in the Register of Sikkim Subjects by virtue
of the Government of India Order No. 26030/36/90-I.C.I., dated the 7th August,
1990 and Order of even number dated the 8th April, 1991;
( iii )   any other individual, whose name does not appear in the Register of Sikkim Sub -
jects, but it is established beyond doubt that the name of the father or husband
or paternal grand-father or brother from the same father of such individual has
been recorded in that register;
( iv )   any other individual, whose name does not appear in the Register of Sikkim
Subjects but it is established that such individual was domiciled in Sikkim on or
before the 26th April, 1975; or
( v )   any other individual, who was not domiciled in Sikkim on or before the 26th April,
1975, but it is established beyond doubt that the father or husband or paternal
grand-father or brother from the same father of such individual was domiciled
in Sikkim on or before the 26th April, 1975.
Note 5. —For the purposes of Sl. No. 21, the expression “concerned Board” means—
( i )   in relation to tea, the Tea Board shall mean the Tea Board established under
section 4 of the Tea Act, 1953 (29 of 1953);
( ii )   in relation to rubber, the Rubber Board constituted under section 4 of the Rubber
Act, 1947 (24 of 1947);
( iii )   in relation to coffee, the Coffee Board constituted under section 4 of the Coffee
Act, 1942 (7 of 1942);
( iv )   in relation to cardamom, the Spices Board constituted under section 3 of the
Spices Board Act, 1986 (10 of 1986);
( v )   in   relation   to   any   other   commodity,   any   Board   or   other   authority
established under any law for the time being in force which the Central Govern -
ment may, by notification, specify in this behalf.
Note 6 .—For the purposes of Sl. No. 22, the expression “local authority” means—
( i )   Panchayat as referred to in article 243( d ) of the Constitution; or
( ii )   Municipality as referred to in article 243P( e ) of the Constitution; or
( iii )   Municipal Committee and District Board,
legally entitled to, or entrusted by the Government with, the control or manage -
ment of a Municipal or local fund; or
( iv )   Cantonment Board constituted under section 3 of the Cantonments Act, 2006 (4
of 2006).
Note 7 .—For the purposes of Sl. No. 25,––
( a )   “Khadi and Village Industries Commission” means the Khadi and Village Industries
Commission established under the Khadi and Village Industries Commission Act,
1956 (61 of 1956); and
( b )   “khadi” and “village industries” shall have the same meanings as respectively
assigned to them in that Act.
Note 8. —For the purposes of Sl. No. 26,––
( a )   “securitisation” shall have the same meaning as assigned to it,—
( i )   in   regulation   2(1)( r )   of   the   Securities   and   Exchange   Board   of
India (Public Offer and Listing of Securitised Debt Instruments) Regulations,

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2008 made under the Securities and Exchange Board of India Act, 1992
(15 of 1992) and the Securities Contracts (Regulation) Act, 1956 (42 of
1956); or
( ii )   in section 2(1)( z ) of the Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); or
( iii )   under the guidelines on securitisation of standard assets issued by the
Reserve Bank of India;
( b )   “securitisation trust” shall have the meaning assigned to it in section 221(6)( d ).
Note 9 .—For the purposes of Sl. No. 28,––
“commodity exchange” shall mean a registered association as defined in section
2( jj ) of the Forward Contracts (Regulation) Act, 1952 (74 of 1952).
Note 10 .— For the purposes of Sl. No. 29,––
( a )   “depository” shall have the same meaning as assigned to it in section 2(1)( e ) of
the Depositories Act, 1996 (22 of 1996);
( b )   “regulations” shall mean the regulations made under the Securities and Exchange
Board of India Act, 1992 (15 of 1992) and the Depositories Act, 1996 (22 of 1996).
Note 11 : For the purposes of Sl. No. 30,––
( a )   “recognised clearing corporation” shall have the same meaning as assigned to it
in—
( i )   regulation 2(1)( p ) of the Securities Contracts (Regulation) (Stock Exchanges
and Clearing Corporations) Regulations, 2018 made under the Securities
and Exchange Board of India Act, 1992 (15 of 1992) and the Securities
Contracts (Regulation) Act, 1956 (42 of 1956); or
( ii )   regulation 2(1)( n ) of the International Financial Services Centres Authority
(Market Infrastructure Institutions) Regulations, 2021 made under the
International Financial Services Centres Authority Act, 2019 (50 of 2019);
( b )   “regulations” means––
( i )   the Securities Contracts (Regulation) (Stock Exchanges and Clearing
Corporations) Regulations, 2018 made under the Securities Contracts
(Regulation) Act, 1956 (42 of 1956); or
( ii )   the International Financial Services Centres Authority (Market Infrastruc -
ture Institutions) Regulations, 2021 made under the International Financial
Services Centres Authority Act, 2019 (50 of 2019);
( c )   “specified person” means—
( i )   any recognised clearing corporation which establishes and maintains the
Core Settlement Guarantee Fund;
( ii )   any recognised stock exchange, being a shareholder in such recognised
clearing corporation, or a contributor to the Core Settlement Guarantee
Fund; and
( iii )   any clearing member contributing to the Core Settlement   Guarantee Fund.
38 [ Note 12:   For the purposes of Sl. No. 38A,—
38.   Inserted by the Finance Act, 2026, w.e.f.   1-4-2026 .

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( a )   the provisions as mentioned against the said serial number shall apply on or after
such date as may be notified by the Central Government in this behalf; and
( b )   pending such notification, the entire disability pension, that is, disability element
and service element of a disabled officer of the Indian armed forces shall be exempt
from income-tax.
Note 13:   For the purposes of Sl. No. 38D, “specified capital asset” means —
( a )   the land or building or both owned by the assessee as on the 2nd June, 2014 and
which has been transferred under the Scheme; or
( b )   the land pooling ownership certificate issued under the Scheme to the assessee in
respect of land or building or both referred to in clause ( a ); or
( c )   the reconstituted plot or land, as the case may be, received by the assessee   in lieu
of land or building or both referred to in clause ( a ) in accordance with the Scheme,
if such plot or land, as the case may be, so received is transferred within two years
from the end of the financial year in which the possession of such plot or land was
handed over to him. ]
SCHEDULE IV
[ See   section 11]
INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF ELIGIBLE NON-
RESIDENTS, FOREIGN COMPANIES AND OTHER SUCH 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 shall have the meanings respec -
tively 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 income by way of
interest.
( a )   A person being an
individual, who
is a resident out -
side India as de -
fined in section
2( w ) of the For -
eign   Exchange
M a n a g e m e n t
Act, 1999 (42 of
1999); or
( b )   a   person   being
an   individual
who   has   been
permitted by the
Such interest is on moneys
standing to the credit of
such person in a Non-Res -
ident (External) Account in
any bank in India as per the
said Act and the rules made
thereunder.

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Sl.
No.
Income not to be
included in total
income
Eligible persons   Conditions
A   B   C   D
Reserve Bank of
India to maintain
the said account.
2.   Any   remuneration
received for service
in the capacity as an
official mentioned in
column C, not being a
citizen of India.
An official, by whatev -
er name called, of an
embassy, high commis -
sion, legation, commis -
sion, consulate or the
trade representation of
a foreign State, or as a
member of the staff of
any of these officials.
( a )   The remuneration re -
ceived as a trade com -
missioner   or   other
official representative
in India of the gov -
ernment of a foreign
State   (not   holding
office as such in an
honorary capacity),
or as members of the
staff, if any, of the
government, resident
for similar purposes
in the country con -
cerned enjoy a similar
exemption   in   that
country; and
( b )   the members of the
staff are subjects of
the   country   repre -
sented and are not
engaged in any busi -
ness or profession or
employment in India
otherwise   than   as
members   of   such   staff.
3.   Any remuneration re -
ceived as an employee
for services rendered
by him during his stay
in India.
A person who is an
employee of a foreign
enterprise, not being a
citizen of India.
( 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
tax year; and
( c )   such   remuneration
is   not   liable   to   be
deducted from the in

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Sl.
No.
Income not to be
included in total
income
Eligible persons   Conditions
A   B   C   D
come of the employer
chargeable under this
Act.
4.   Any income charge -
able under the head
“Salaries”, received or
due as remuneration
for services rendered
in   connection   with
his employment on a
foreign ship.
Any individual being a
non-resident, not being
a citizen of India.
The total stay of such in -
dividual in India does not
exceed in the aggregate a
period of ninety days in the
tax year.
5.   Any remuneration re -
ceived as an employee
of the Government of
a foreign State.
An   employee   of   the
Government of a for -
eign State, not being a
citizen of India.
Such remuneration is re -
ceived during his stay in
India in connection with his
training in any establish -
ment or office of, or in any
undertaking owned by—
( a )   the Government; or
( b )   a n y   c o m p a n y   i n
which the entire paid-
up   share   capital   is
held by the Central
Government or any
State Government or
State Governments,
or partly by the Cen -
tral Government and
partly by one or more
State Governments;
or
( c )   any company which
is a subsidiary of a
company referred to
in clause ( b ); or
( d )   any corporation es -
tablished by or under
a Central Act or State
Act or Provincial Act;
or
( e )   any society registered
under the Societies