Income Tax Act

Official PDF pages 641–645

SOURCE PDF PAGE 641
SCHEDULE VII
[ See   section 11]
PERSONS EXEMPT FROM TAX
Any eligible person, mentioned in column B of the Table below, shall not be liable
to pay income-tax on the total income for any tax year, subject to the conditions
mentioned in column C of the said Table, and the expression used in columns B
and C of the said Table, shall have the meanings respectively assigned to them in
the Notes below the said Table:
TABLE
Sl.
No.
Eligible persons   Conditions
A   B   C
1.   Any regimental Fund or Non-public
Fund established by the armed forces
of the Union.
Such Fund is for the welfare of the
past and present members of the
armed forces or their dependants.
2.   Any   fund   established   for   such
purposes as may be notified by the
Board for the welfare of employees or
their dependants and such employees
are members of such fund.
( a )   Such fund—
( i )   applies its income or accu -
mulates it for application,
wholly and exclusively to
the objects for which it is
established; and
( ii )   invests   its   funds   and
contributions and other
sums received by it in the
forms or modes specified
in section 350;
( b )   such fund is approved by the
Principal   Commissioner   or
Commissioner in such manner
as may be prescribed; and such
approval shall at any one time
have effect for such tax year or
years not exceeding three tax
years as specified in the order
of approval.
3.   Any   fund,   by   whatever   name   called,   set
up by the Life Insurance Corporation
of India on or after the 1st August,
1996 or any other insurer under a
pension scheme.
( a )   The contribution is made to
such pension scheme by any
person for the purpose of re -
ceiving pension from such fund;
and
( b )   such scheme is approved by
the Controller of Insurance or
the Insurance Regulatory and
Development Authority estab -
lished under section 3(1) of

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Sl.
No.
Eligible persons   Conditions
A   B   C
the Insurance Regulatory and
Development Authority Act,
1999 (41 of 1999).
4.   An authority (whether known as the
Khadi and Village Industries Board
or by any other name).
Such   authority   is   established   in
a State by or under a State Act or
Provincial Act for the development
of khadi or village industries in the
State.
5.   Any body or authority (whether or not
a body corporate or corporation sole)
established, constituted or appointed
by or under any Central Act or State
Act or Provincial Act.
( a )   Such body or authority pro -
vides for the administration
of any one or more of public
religious or charitable trusts
or   endowments   (including,
temples, gurudwaras, wakfs,
churches, synagogues, agiaries
or a mutt or other places of pub -
lic religious worship) or socie -
ties for religious or charitable
purposes, registered under the
Societies Registration Act, 1860
(21 of 1860), or any other law;
and
( b )   exclusion from total income
as provided herein shall not be
available to any trust, endow -
ment or society being adminis -
tered by such body or authority.
6.   SAARC Fund for Regional Projects
set   up   by   Colombo   Declaration
issued on the 21st December, 1991
by the Heads of State or Government
of the Member Countries of South
Asian   Association   for   Regional
Cooperation established on the 8th
December, 1985 by the Charter of the
South Asian Association for Regional
Cooperation.
Nil
7.   Insurance   Regulatory   and   De -
velopment   Authority   established
under   section   3(1)   of   the   Insur -
ance Regulatory and Development
Authority Act, 1999 (41 of 1999).
Nil

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Sl.
No.
Eligible persons   Conditions
A   B   C
8.   Central Electricity Regulatory Com -
mission constituted under section
76(1) of the Electricity Act, 2003 (36
of 2003).
Nil
9.   Prasar Bharati (Broadcasting Corpo -
ration of India) established section
3(1) of the Prasar Bharati (Broad -
casting Corporation of India) Act,
1990 (25 of 1990).
Nil
10.   The Prime Minister’s National Relief
Fund or the Prime Minister’s Citizen
Assistance and Relief in Emergency
Situations Fund (PM CARES FUND).
Nil
11.   The Prime Minister’s Fund (Promo -
tion of Folk Art).
Nil
12.   The Prime Minister’s Aid to Students
Fund.
Nil
13.   The   National   Foundation   for
Communal Harmony.
Nil
14.   The Swachh Bharat Kosh, set up by
the Central Government.
Nil
15.   The Clean Ganga Fund set up by the
Central Government.
Nil
16.   The Chief Minister’s Relief Fund or
the   Lieutenant   Governor’s   Relief
Fund in respect of any State or Union
territory as referred to in section
133(1)( a )( xv ).
Nil
17.   Any University or other educational
institution wholly or substantially
financed by the Government.
( a )   It exists solely for educational
purposes and not for purposes
of profit; and
( b )   if the Government grant to such
University or other educational
institution exceeds such per -
centage of the total receipts
including any donations, as
may be prescribed, of such
University or other educational
institution, it shall be consid -
ered   as   being   substantially

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Sl.
No.
Eligible persons   Conditions
A   B   C
financed by the Government
during the relevant tax year.
18.   Any hospital or other institution
wholly or substantially financed by
the Government.
( a )   It   is   for   the   reception   and
treatment of persons suffering
from illness or mental defective -
ness, or for the reception and
treatment of persons during
convalescence or of persons
requiring medical attention or
rehabilitation;
( b )   it exists solely for philanthropic
purposes and not for the pur -
poses of profit; and
( c )   if the Government grant to such
hospital or other institution
exceeds such percentage of the
total receipts including any do -
nations, as may be prescribed,
of such hospital or other insti -
tution, it shall be considered
as being substantially financed
by the Government during the
relevant tax year.
19.   ( a )   Any University or other educa -
tional institution;
( b )   any hospital or other institu -
tion.
( a )   Such University or other edu -
cational institution exists solely
for educational purposes and
not for the purposes of profit;
( b )   such hospital or other institu -
tion is for the reception and
treatment of persons suffering
from illness or mental defective -
ness, or for the reception and
treatment of persons during
convalescence or of persons
requiring medical attention or
rehabilitation;
( c )   such hospital or other insti -
tution exists solely for philan -
thropic purposes and not for
the purposes of profit; and

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Sl.
No.
Eligible persons   Conditions
A   B   C
( d )   the aggregate of annual receipts
of such University or Universi -
ties or educational institution
or institutions, and hospital
or hospitals or institution or
institutions, does not exceed
five crore rupees;
( e )   where such University or other
educational institution or such
hospital or other institution
receives any anonymous do -
nation defined under section
355( a ), the provisions of section
337 (Table: Sl. No. 1) in respect
of specified income shall apply
mutatis mutandis   as they ap -
ply in the case of a registered
non-profit organisation and
such   anonymous   donations
shall be excluded from the in -
come   on   which   no   tax   is   payable.
20.   A Mutual Fund registered under
the Securities and Exchange Board
of India Act, 1992 (15 of 1992) or
regulations made thereunder.
Nil.
21.   Any Mutual Fund set up by a public
sector bank or a public financial
institution   or   authorised   by   the
Reserve Bank of India.
Such   conditions   as   the   Central
Government may, by notification,
specify.
22.   A recognised provident fund.   Nil.
23.   An approved superannuation fund.   Nil.
24.   An approved gratuity fund.   Nil.
25.   Deposit-linked   Insurance   Fund
established under section 3G of the
Coal Mines Provident Funds and
Miscellaneous Provisions Act, 1948
(46 of 1948).
Nil.
26.   Deposit-linked   Insurance   Fund
established under section 6C of the
Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952
(19 of 1952).
Nil.