Schedule III — INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF ELIGIBLE PERSONS

[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––
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.
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
State Legislature or of
any Committee there -
of.
6. Any allowance re -
ceived.
Any person by reason
of his membership of
Parliament under the
Members of Parlia -
ment (Constituency
Allowance) Rules, 1986
made under the Salary,
Allowances and Pen -
sion of Members of
Parliament Act, 1954
(30 of 1954).
Nil.
7. Any constituency
allowance received.
Any person by reason
of his membership of
any State Legislature
under any State Act or
rules made thereunder.
Nil.
8. The value of any
travel concession or
assistance.
Any individual. ( a) Such sum is received
by, or due to, such
individual—
( i) from his employ-
er for himself
and his family, in
connection with
his proceeding
on leave to any
place in India;
( ii) from his employ-
er or former em-
ployer for himself
and his family, in
connection with
his proceeding
to any place in
India after re -
tirement from
service or after
the termination
of his service;
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
( b) such sum is subject
to such conditions
as may be prescribed
(including condi -
tions as to number
of journeys and the
amount which shall
be exempt per head);
( c) the conditions in clause
(b) shall have regard to
the travel concession
or assistance granted
to the employees of the
Central Government;
and
( d) the sum not included in
the total income shall
in no case exceed the
amount of expenses
actually incurred for
the purpose of such
travel.
9. Any allowances or
perquisites paid or
allowed as such out-
side India by the
Government.
A citizen of India. Such sum is paid or allowed
for rendering service outside
India.
10. Income in the nature
of a perquisite.
An employee, being an
individual.
( a) Such perquisite is not
provided for by way
of monetary payment,
within the meaning of
section 17(1); and
( b) the tax on such income
actually paid by his em-
ployer, at the option of
the employer, on behalf
of such employee.
11. Any special allow -
ance from employer.
Any assessee. ( a) Such allowance is
specifically granted
to meet expenditure
actually incurred on
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
payment of rent (by
whatever name called)
in respect of residential
accommodation occu-
pied by the assessee;
( b) such allowance is to
such extent as may
be prescribed having
regard to the area or
place in which such ac-
commodation is situat-
ed and other relevant
considerations;
( c) the residential accom-
modation occupied
by the assessee is not
owned by him; and
( d) the assessee has actu-
ally incurred expendi-
ture on payment of rent
(by whatever name
called) in respect of
the residential accom-
modation occupied by
him.
12. Any special allow -
ance or benefit to
the extent to which
such expenses are
actually incurred for
that purpose.
Any assessee. ( a) Such allowance or
benefit is not in the
nature of a perquisite
within the meaning of
section 17(1); and
( b) such allowance or
benefit is specifically
granted to meet ex -
penses wholly, nec -
essarily and exclu -
sively incurred in the
performance of the
duties of an office or
employment of profit,
as may be prescribed.
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
13. Any allowance. Any assessee. ( a) Such allowance is
granted to the asses -
see,—
( i) to meet his per -
sonal expenses at
the place where
the duties of his
office or place of
employment of
profit are ordi -
narily performed
by him or at the
place where he
ordinarily re -
sides; or
( ii) to compensate
him for the in -
creased cost of
living,
to the extent as may be
prescribed; and
( b) any allowance to remu-
nerate or compensate
for performing duties
of a special nature
relating to office or
employment shall not
be excluded from total
income unless such
allowance is related to
the place of his posting
or residence.
14. Pension received. An individual who has
been in the service of
the Central Govern -
ment or State Gov -
ernment and has been
awarded “ Param Vir
Chakra” or “ Maha Vir
Chakra” or “Vir Chakra”
or such other gallantry
Nil.
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
award as the Central
Government may, by
notification, specify in
this behalf.
15. Family pension re -
ceived.
Any member of the
family of an individual
referred against serial
number 14.
Nil.
16. Family pension re -
ceived.
Widow or children or
nominated heirs of a
member of the armed
forces (including para-
military forces) of the
Union.
The death of such member
has occurred in the course
of operational duties in such
circumstances and subject to
such conditions, as may be
prescribed.
17. Any income inclu -
dible in the total in-
come under section
99(1)(c).
In case of an individ -
ual referred to in that
sub-section.
Exclusion of such income
from the total income is to
the extent such income does
not exceed ` 1,500 in respect
of each minor child whose
income is so includible.
18. Any income charge-
able under the head
“Capital gains” aris-
ing from the transfer
of agricultural land.
An individual or a Hin-
du undivided family.
( a) Such land is situated in
any area referred to in
section 2(22)(iii);
( b) such land, during the
period of two years
immediately preced -
ing the date of transfer,
was being used for ag-
ricultural purposes by
such Hindu undivided
family or individual or
a parent of his;
( c) such transfer is by way
of compulsory acqui -
sition under any law,
or a transfer, the con-
sideration for which
is determined or ap -
proved by the Central
Government or the
Reserve Bank of India;
and
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
( d) such income has arisen
from the compensa -
tion or consideration
for such transfer re -
ceived by such assessee
on or after the 1st April,
2004.
19. Any income which
accrues or arises—
( a) from any
source in the
areas or States
mentioned in
column C; or
( b) by way of div -
idend or inter-
est on securi -
ties.
A member of a Sche-
duled Tribe,—
( a) as defined in arti-
cle 366(25) of the
Constitution; and
( b) residing in any
area specified in
Part I or II of the
Table append -
ed to paragraph
20 of the Sixth
Schedule to the
Constitution
or in the States
of Arunachal
Pradesh, Mani -
pur, Mizoram,
Nagaland and
Tripura or in the
areas covered by
notification No.
TAD/R/35/50/
109, dated the
23rd February,
1951, issued by
the Governor of
Assam under the
proviso to the
said paragraph
20(3) [as it stood
immediately
before the com -
mencement of
Nil.
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
the North-East -
ern Areas (Reor-
ganisation) Act,
1971 (18 of 1971)
or in the Union
territory of Lada-
kh].
20. Any income which
accrues or arises—
( a) from any
source in the
State of Sik -
kim; or
( b) by way of div -
idend or inter-
est on securi -
ties.
An individual, being a
Sikkimese.
Nil.
21. The amount of any
subsidy received
from or through the
concerned Board
under a scheme.
An assessee who car -
ries on the business
of growing and manu-
facturing tea, rubber,
coffee, cardamom or
such other commodi -
ty in India as may be
notified by the Central
Government.
( a) Such scheme is for re-
plantation or replace -
ment of tea bushes,
rubber plants, coffee
plants, cardamom
plants or plants for
the growing of such
other commodity or
for rejuvenation or
consolidation of areas
used for cultivation of
tea, rubber, coffee, car-
damom or such other
commodity;
( b) such scheme is notified
by the Central Govern-
ment; and
( c) the assessee furnish -
es to the Assessing
Officer, along with his
return of income for
the tax year concerned
or within such further
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
time as the Assessing
Officer may allow, a
certificate from the
concerned Board, as
to the amount of such
subsidy paid to the
assessee during the tax
year.
22. The income which is
chargeable under the
head “Income from
house property”,
“Capital gains” or
“Income from other
sources” or from a
trade or business.
Any local authority. Income from trade or busi-
ness is eligible for exclusion
from total income if such
income accrues or arises
from the supply of—
( a) a commodity or ser -
vice (not being water
or electricity) within
its own jurisdictional
area; or
( b) water or electrici -
ty within or outside
its own jurisdictional
area.
23. Any income of a re -
search association.
A research association
for the time being ap -
proved for the purpose
of section 45(3)(a).
( a) Applies its income
or accumulates it for
application, wholly
and exclusively to the
objects for which it is
established;
( b) invests its funds re -
ceived in the forms
or modes specified in
section 350;
( c) satisfies such condi -
tions as may be pre -
scribed; and
( d) the procedure for with-
drawal of approval
granted shall be in
such manner as may
be prescribed.
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
24. Any income (other
than income charge-
able under the head
“Income from house
property” or any
income received
for rendering any
specific services
or income by way
of interest or divi -
dends derived from
its investments).
An association or in -
stitution established
in India having as
its object the control,
supervision, regula -
tion or encouragement
of the profession of,
law, medicine, accoun-
tancy, engineering or
architecture or such
other profession as the
Central Government
may, by notification
specify in this behalf.
( a) The association or
institution applies its
income, or accumu -
lates it for application,
solely to the objects for
which it is established;
( b) the association or in -
stitution is for the time
being approved by the
Central Government
by general or special
order; and
( c) the procedure for with-
drawal of approval
granted shall be in
such manner, as may
be prescribed.
25. Any income attrib -
utable to the busi -
ness of production,
sale, or marketing,
of khadi or products
of village industries.
An institution consti -
tuted as a public chari-
table trust or registered
under the Societies
Registration Act, 1860
(21 of 1860), or under
any other law corre -
sponding to that Act
in force in any part of
India.
( a) Such institution exists
solely for the develop-
ment of khadi or village
industries or both, and
not for the purposes of
profit;
( b) such institution ap -
plies its income, or
accumulates it for ap-
plication, solely for the
development of khadi
or village industries, or
both;
( c) such institution is
approved for such
purpose by the Khadi
and Village Industries
Commission for a peri-
od not exceeding three
tax years at any one
time; and
( d) the procedure for
withdrawal of approv-
al granted shall be
in such manner as
may be prescribed.
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
26. Any income from the
activity of securiti -
sation.
A securitisation trust. Nil.
27. Any income, by
way of contribu -
tions received from
recognised stock
exchanges and the
members thereof.
Any Investor Protec -
tion Fund set up by
recognised stock ex -
changes in India, either
jointly or separately.
( a) Such fund is notified
by the Central Govern-
ment; and
( b) where any amount
standing to the credit
of the Fund and not
charged to income-tax
during any tax year is
shared, either whol -
ly or in part, with a
recognised stock ex -
change, the whole of
the amount so shared
shall be deemed to be
the income of the tax
year in which such
amount is so shared
and shall according -
ly be chargeable to
income-tax.
28. Any income, by way
of contributions re -
ceived from com -
modity exchanges
and the members
thereof.
Any Investor Protec -
tion Fund set up by
commodity exchanges
in India, either jointly
or separately.
( a) Such fund is notified
by the Central Govern-
ment; and
( b) where any amount
standing to the credit
of the said Fund and
not charged to in -
come-tax during any
tax year is shared,
either wholly or in
part, with a commodity
exchange, the whole of
the amount so shared
shall be deemed to be
the income of the tax
year in which such
amount is so shared and
shall accordingly be
chargeable to income-
tax.
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
29. Any income, by way
of contributions re -
ceived from a de -
pository.
Any Investor Protec -
tion Fund set up as
per the regulations by
a depository.
( a) Such fund is notified
by the Central Govern-
ment; and
( b) where any amount
standing to the credit
of the Fund and not
charged to income-tax
during any tax year is
shared, either wholly
or in part with a depos-
itory, the whole of the
amount so shared shall
be deemed to be the
income of the tax year
in which such amount
is so shared and shall,
accordingly, be charge-
able to income-tax.
30. ( a) Any income
by way of con-
tribution re -
ceived from
specified per -
sons;
( b) any income by
way of penal -
ties imposed
by the recog -
nised clearing
corporation
and credited
to the Core Set-
tle- ment Guar-
antee Fund;
( c) any income
from invest -
ment made by
the Fund.
Any Core Settlement
Guarantee Fund, set
up by a recognised
clearing corporation.
( a) Such fund is notified
by the Central Govern-
ment; and
( b) where any amount
standing to the credit
of the Fund and not
charged to income-tax
during any tax year is
shared, either wholly
or in part with the
specified person, the
whole of the amount so
shared shall be deemed
to be the income of the
tax year in which such
amount is so shared
and shall, according -
ly, be chargeable to
income-tax.
31. Any income charge-
able under the heads
“Income from house
property” and “In -
come from other
sources”.
( a) A registered un -
ion within the
meaning of the
Trade Unions
Act, 1926 (16 of
1926), formed
Nil.
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
primarily for the
purpose of reg -
ulating the re -
lations between
workmen and
employers or be-
tween workmen
and workmen; or
( b) an association
of registered un-
ions referred to
in clause (a).
32. Any interest on se -
curities, and any
capital gains of the
fund arising from
the sale, exchange
or transfer of such
securities.
Provident Fund to
which the Provident
Funds Act, 1925 (19 of
1925) applies.
Such securities are held by,
or are the property of such
Provident Fund.
33. Any income of the
nature and to the
extent, arising from
the international
sporting event held
in India.
Any person notified
by the Central Gov -
ernment.
( a) Such international
sporting event—
( i) is approved by
the international
body regulating
the international
sport relating to
such event;
( ii) has participation
by more than two
countries; and
( iii) is notified by
the Central Gov-
ernment for the
purposes of this
clause; and
( b) nature and extent of
such income is notified
by the Central Govern-
ment.
34. Any income, of the
nature and to the
extent, which the
Central Government
A body or authority
which has been estab-
lished or constituted
Such body or authority—
( a) is established or con -
stituted or appointed
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
may notify in this
behalf.
or appointed under a
treaty or an agreement
entered into by the
Central Government
with two or more coun-
tries or a convention
signed by the Central
Government.
not for the purposes of
profit; and
( b) is notified by the Cen-
tral Government.
35. Any amount received
as a loan, either in
lump sum or in in -
stalment, in a trans-
action of reverse
mortgage referred to
in section 70(1)(zh).
Any individual. Nil.
36. Any income of the
nature and to the
extent which the
Central Government
may, by notific-
ation, specify in this
behalf.
A body or authority or
Board or Trust or Com-
mission (by whatever
name called), or a class
thereof, other than
those covered under
Schedule VII (Table:
Sl. No. 42).
Such body or authority or
Board or Trust or Commis-
sion—
( a) has been established or
constituted by or under
a Central Act, State or
Provincial Act, or con-
stituted by the Central
Government or a State
Government, with the
object of regulating
or administering any
activity for the benefit
of the general public;
( b) is not engaged in any
commercial activity;
and
( c) is notified by the Cen-
tral Government.
37. Any income accruing
or arising as a result
of arrangement for
replenishment of
crude oil stored in
its storage facili -
ty in pursuance of
the directions of the
Indian Strategic Petro-
leum Reserves Limited,
being a wholly owned
subsidiary of the Oil
Industry Development
Board under the Min-
istry of Petroleum and
Natural Gas.
It shall not apply to an
arrangement, if the crude
oil is not replenished in the
storage facility within three
years from the end of the tax
year in which the crude oil
was removed from the stor-
age facility for the first time.
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
Central Government
in this behalf.
38. Any gratuity com -
puted as per the
provisions of section
19(1)(Table: Sl. No.
3.C) to (Table: Sl.
No. 6.C).
Any widow, children or
dependants on death of
an employee.
Nil.
37[38A. Disability Pension
received (including
service element and
disability element).
An individual who
has been a member of
the armed forces (in -
cluding paramilitary
forces) of the Union.
(a) The individual has
been invalided out of
service in the armed
forces on account of
bodily disability attrib-
utable to, or aggravated
by such service; and
(b) the individual has not
retired on superannua-
tion or otherwise.
38B. Any interest on com-
pensation amount
awarded by Motor
Accident Claims Tri-
bunal.
An individual or his
legal heir.
Such interest is received un-
der the Motor Vehicles Act,
1988 (59 of 1988).
38C. Any income in re -
spect of any award
or agreement made
on account of com -
pulsory acquisition
of any land.
An individual or a
Hindu undivided fam -
ily.
Such award or agreement is
made under the provisions
of the Right to Fair Compen-
sation and Transparency in
Land Acquisition, Rehabili -
tation and Resettlement Act,
2013 (30 of 2013), except
under section 46 of the said
Act.
38D. Any income charge -
able under the head
“Capital gains” aris -
ing from the transfer
of specified capital
asset.
An individual or a
Hindu undivided fam -
ily.
(a) Such eligible person
was the owner of such
specified capital asset as
on the 2nd June, 2014;
( b) such specified capital
asset is transferred un-
der the Land Pooling
37. Sl. Nos. 38A to 38D inserted by the Finance Act, 2026, w.e.f. 1-4-2026.
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
Scheme covered under
the Andhra Pradesh
Capital City Land Pool-
ing Scheme (Formula-
tion and Implementa -
tion) Rules, 2015 made
under the provisions
of the Andhra Pradesh
Capital Region Devel -
opment Authority Act,
2014 (Andhra Pradesh
Act 11 of 2014) and the
rules, regulations and
Schemes made under
the said Act; and
( c) such eligible person was
handed over possession
of reconstituted plot or
land on or before the
31st March, 2031.]
39. Any income falling
under section 10(15)
(iic) or ( 15)(iv)(i)
or ( 19A) or ( 40) of
the Income-tax Act,
1961(43 of 1961),
shall be subject to
the conditions as
provided therein.
Note 1.—For the purposes of Sl. No. 3, the expression “disaster” shall have the same meaning
as assigned to it in section 2(d) of the Disaster Management Act, 2005 (53 of 2005).
Note 2.—For the purposes of Sl. Nos. 8 and 15, the expression “family” in relation to an
individual, means—
( i) the spouse and children of the individual; and
( ii) the parents, brothers and sisters of the individual or any of them, wholly or mainly
dependent on the individual.
Note 3.—For the purposes of Sl. No. 18, the expression “compensation or consideration”
includes the compensation or consideration enhanced or further enhanced by any court,
Tribunal or other authority.
Note 4.—For the purposes of Sl. No. 20, the expression “Sikkimese” means—
( i) an individual, whose name is recorded in the register maintained under the Sik-
kim Subjects Regulation, 1961 read with the Sikkim Subject Rules, 1961 (herein
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,
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.
( 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.]