: CUSTOM DUTY:

Custom duty is a duty on import and export. In the old time when any businessman comes in any
country for selling of goods he had to give gift to the king of that country. This custom of presenting is
called custom duty .Its other name is tariffs.
First law of custom is sea custom Act 1878. Now this is replaced with the custom act 1962. These
laws have the provision for levy custom duty, powers and appointment of officer, exemption of
custom duty.
What is Custom Duty?
Custom duty is a variant of Indirect Tax and is applicable on all goods imported and a few goods
exported out of the country. Duties levied on import of goods are termed as import duty while duties
levied on exported goods are termed as export duty. Countries around the world levy custom duties on
import/export of goods as a means to raise revenue and/or shield domestic institutions from predatory
or efficient competitors from other countries.
Customs duty is levied as per the value of goods or dimensions, weight and other such criteria
according to the goods in question. If duties are based on the value of goods, then they are called as ad
valorem duties, while quantity/weight based duties are called specific duties. Compound duties on
goods are a combination of value as well as various other factors.
Custom Duty in India:
Custom duty in India is defined under the Customs Act, 1962 and enables the government to levy duty
on exports and imports, prohibit export and import of goods, procedures for importing/exporting and
offences, penalties etc. All matters related to custom duty fall under the Central Board of Excise &
Customs (CBEC). The CBEC, in turn, is a division of the Department of Revenue of the Ministry of
Finance. CBEC formulates policies that concern collection or levying of custom duties, custom duty
evasion, smuggling prevention and administrative decisions related to customs formations.
CBEC has various divisions that take care of the field work including Commissionerate of Customs,
Customs, Customs (preventive and Central Excise Zones, Central Revenues Control Laboratory and
Directorates etc. CBEC also oversees proper tax administration for foreign and inland travel.
Types of Custom Duty:
Custom duties are levied almost universally on all goods imported into the country. Export duties are
levied on a few goods as specified under the Second Schedule. Import duties are not levied on a few
items including lifesaving drugs/equipment, fertilizers, food grains etc. Import duties are further
divided into basic duty, additional customs duty, true countervailing duty, protective duty, education
cess and anti-dumping duty or safeguard duty.
 Basic Custom Duty:

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 Basic custom duty is applicable on imported items that fall under the ambit of Section 12 of the
Customs Act, 1962. These duties are levied at the rates prescribed in First Schedule to Customs
Tariff Act, 1975, under the terms specified in Section 2 of the act. The levied rates may be standard
or preferential as per the country of import.
 Additional Customs Duty (Countervailing Duty (CVD)):
This duty is levied on imported items under Section 3 of Customs Tariff Act, 1975. It is equal to the
Central Excise Duty that is levied on similar goods produced within India. This duty is calculated on
the aggregate value of goods including BDC and landing charges.
 Protective Duty:
Protective duty may be imposed to shield the domestic industry against imports at a rate
recommended by the Tariff Commissioner.
 Education Cess:
This duty is levied at 2% and higher education cess at another 1% of aggregate of customs duties.
 Anti-dumping Duty:
Anti-dumping duty may be imposed if the good being imported is at below fair market price, and is
limited to the difference between export and normal price (dumping margin).
 Safeguard Duty:
Safeguard duty is levied if the government feels that a sudden increase in exports can potentially
damage the domestic industry.
Flotsam: pieces of broken wood and other waste materials found on the beach or floating on the
sea
Jetsam: things that are thrown away from ships and then float onto the land
Derelict: Derelict buildings or places are not cared for and are in bad condition
Wreck: to destroy or badly damage something
Relinquish: to unwillingly stop holding or keeping something
Abandon: to leave a place, thing, or person, usually for ever

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Page 3 of 17
 EXPORT PROMOTION
India‟s exports contracted in recent months due to sluggish demand in western markets. India‟s
exports declined for the eighth straight month by 10.3 per cent in July to $23.13 billion, pushing the
trade deficit to $12.81 billion. In July 2014, the merchandise exports were at $25.79 billion. Last time
exports registered a positive growth was in November 2014 when shipments expanded at the rate of
7.27 per cent. To push export growth, exporters can take help of the government schemes. Here are
top export schemes of the Indian Government.
1. EXPORT ORIENTED UNIT (EOU) SCHEME
Description: EOU Scheme provides an internationally competitive duty-free environment coupled
with better infrastructural facilities for export production.
Nature of assistance: The units are allowed to import or procure locally without the payment of duty
all types of goods including capital goods, raw materials, components, packing materials,
consumables, spares and various other specified categories of equipment.
Who can apply: Exporters, entrepreneurs, etc.
From where to apply: FIEO, Export Promotion Council and Ministry of Commerce
2. SOFTWARE TECHNOLOGY PARK (STP) SCHEME
Description: STP Scheme is a 100 per cent export-oriented scheme for undertaking software
development for export using.
Nature of assistance: The approvals are given under single window clearance mechanism. All
imports of hardware and software in STP units are completely duty free, and import of second-hand
capital goods and re-export of capital goods are also permitted.
Who can apply: Exporters, entrepreneurs, etc.
From where to apply: FIEO, Export Promotion Council and Ministry of Commerce
3. SERVICES EXPORTS FROM INDIA SCHEME (SEIS)
Description: The SEIS has been introduced to increase exports of notified services.
Nature of assistance: The rewards under SEIS shall be admissible for exports made/services rendered
on or after the date of notification of this policy. The duty credit scrips shall be granted as rewards
under SEIS. The duty credit scrips and goods imported/domestically procured against them shall be
freely transferable.
Who can apply: Exporters, entrepreneurs, etc.
From where to apply: FIEO, Export Promotion Council and Ministry of Commerce
4. THE MERCHANDISE EXPORTS FROM INDIA SCHEME (MEIS)
Description: The MEIS has been introduced for the export of specific goods to specified markets.
Nature of assistance: Rewards for the export of notified goods to notified markets under MEIS shall
be payable as percentage of realised FOB value.

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Who can apply: Exporters, entrepreneurs, etc.
From where to apply: FIEO, Export Promotion Council and Ministry of Commerce
5. EXPORT PROMOTIONAL CAPITAL GOODS (EPCG) SCHEME
Description: The objective of the EPCG Scheme is to facilitate import of capital goods for producing
quality goods and services to enhance India‟s export competitiveness.
Nature of assistance: EPCG Scheme allows import of capital goods for preproduction, production
and post-production at zero customs duty.
Who can apply: Importers, entrepreneurs, etc.
EOU Export oriented Unit

EPCG Export promotion Capital Goods

AA Advance Authorization

DFIA Duty Free Import Authorization

SFIS Served From India Scheme

FMS Focus Market Scheme

FPS Focus Product Scheme

Tax incentives for undertakings other than infrastructure development undertakings

New industrial undertakings located in „backward‟ states and districts notified as such are entitled to
full tax exemption of profits for the first three or five years of operation, followed by a partial tax
exemption of 30% of profits for the next five years. The list of 'backward' districts has been
categorised into category A and category B districts, depending upon the current level of
infrastructure development in those areas. The initial tax holiday period is five years in the case of
category A districts and three years in the case of category B districts. A similar incentive is also
applicable for hotels satisfying prescribed conditions.

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If certain conditions are met, a tax holiday is permitted on the profits earned by an undertaking
engaged in any of the following:
 Integrated business of handling, storage, and transportation of food grains.
 Developing and building of housing project.
 Scientific research.
 Commercial production or refining of mineral oils.
 Setting up and operating a cold chain for agricultural produce.
 Processing, preservation, and packaging of fruits or vegetables.
 Operating and maintaining a hospital in a rural area.
The tax holiday periods range from five to ten years, and the percentage of the rebate is 30%, 50%, or
100% in initial years and 30% in the later years. The number of years constituting „initial‟ and „later‟
years varies from sector to sector.
A relaxation of 100% shall be provided under certain conditions to avail of profit-linked deduction in
the business of developing qualifying affordable housing projects. The conditions are as follows:
 Size of residential until will be measured as „carpeted area‟ and not a „built-up area‟.
 Completion of project for claiming deduction will be increased from three years to five years
from receipt of approval.
 Size restriction of 30 square metres for residential units shall apply only to metro cities (i.e.
municipal limits of Chennai, Delhi, Kolkata, and Mumbai).
Tax incentives for infrastructure development undertakings
Enterprises engaged in the business of power generation, transmission, or distribution; developing or
operating and maintaining a notified infrastructure facility, industrial park, or SEZ; substantially
renovating and modernising the existing network of transmission or distribution lines (between
specified periods); or laying and operating a cross-country natural gas distribution network are
eligible for a tax exemption of 100% of profits for any ten consecutive years falling within the first
15 years of operation (first 20 years in the case of infrastructure projects, except for ports, airports,
inland waterways, water supply projects, and navigational channels to the sea).
An investment-linked deduction will be available to Indian companies or their consortium engaged in
the business of developing or operating and maintaining of a new infrastructure facility. The
taxpayers should have entered into an agreement with the Central or State Government or local
authorities in respect of such activities relating to specified infrastructure facilities. This is effective
from tax year 2017/18 onwards.
Since now there are investment-linked deductions, the profit-linked deduction available for
infrastructure facilities have a sunset clause of 31 March 2017 for commencement of the operations.
Thereafter, deduction of 100% of capital expenditure incurred on setting up of the said infrastructure
facility will be available with effect from 1 April 2017. Investment-linked deductions in respect of

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specified capital expenditure shall not be allowed if incurred for the purpose of acquisition of asset
for payment (individual or aggregate) exceeding INR 10,000 per day unless such payment was made:
 by an account payee cheque/draft, or
 through electronic clearing system through a bank account.
This is effective from tax year 2018/19 onwards.
'Infrastructure facility' means roads, including toll roads, bridges, rail systems, highway projects,
water supply projects, water treatment systems, irrigation projects, sanitation and sewerage systems
or solid waste management systems, ports, airports, inland waterways, inland ports, or navigational
channels to the sea.
Tax incentives for exports
Export profit from a new undertaking, satisfying prescribed conditions and set up in an SEZ, is
eligible for tax exemption of 100% for the first five years, from the year in which manufacturing
commences, followed by a partial tax exemption of 50% for the next five years. A further tax
exemption of 50% of the export profit for five years is also available after that, subject to an equal
amount of profit being retained and transferred to a special reserve in the books of account.
Tax incentives for units in the North Eastern Region of India
Measures are in place to facilitate the development of the North Eastern Region of India and of the
state of Sikkim. Undertakings located in these states that (i) begin to manufacture or produce any
eligible article, (ii) undertake substantial expansion, or (iii) commence an eligible business between 1
April 2007 and 1 April 2017 are eligible for a 100% deduction of profits for ten consecutive years.
A list of eligible businesses has been provided by the Indian government. The eligible businesses
include hotels (not below two-star category), adventure and leisure sports including ropeways, the
provision of medical and health services in nursing homes with a minimum capacity of 25 beds,
operating a vocational training institute for hotel management, catering and food crafts,
entrepreneurship development, nursing and para-medical training, civil aviation related training,
fashion design and industrial training, running an information technology-related training centre,
manufacturing of information technology hardware, and bio-technology. Businesses other than the
above-listed eligible businesses are not entitled to claim the tax holiday.
Tax incentives for hotels/convention centres located in specified districts
Hotels located in a specified district having a World Heritage Site, that are constructed and that have
started functioning at any time during the period 1 April 2008 to 31 March 2013, are eligible for a tax
holiday for a period of five years.
Tax incentives for certain income relating to offshore banking units and international financial
services centres
A scheduled bank, or any bank incorporated by or under the laws of a country outside India, that has
an offshore banking unit in an SEZ or an international financial services centre with a specified

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income that is subject to prescribed conditions is eligible for a tax exemption of 100% of the
specified income for five consecutive years beginning from the year in which the permission under
the Indian Banking Regulation Act, 1949 was obtained and of 50% of the specified income for five
consecutive years.
To encourage the location of offshore fund managers in India, a specific regime has been laid down.
In the case of an eligible investment fund, fund management activity carried out through an eligible
fund manager acting on behalf of such fund will not constitute a business connection in India. An
eligible investment fund will not be treated as resident in India merely because the eligible fund
manager undertakes fund management activities in India. Offshore funds and fund managers are
required to satisfy certain conditions to be eligible for the regime. The conditions are not applicable
to funds set up by the government of a foreign state or the Central Bank of a foreign state, a
sovereign fund, or such other funds as may be notified by the government of India and subject to
fulfilment of conditions as may be specified. Further, the special regime shall be applied in
accordance with guidelines and in such manner as the administrative board may prescribe.
Tax incentive for hiring new workmen
With a view to encouraging generation of employment, the benefit of deduction on hiring of new
workmen has been extended to all taxpayers who are subjected to tax audit, instead of the earlier
provision, which was applicable only to manufacturing units. Further, to enable smaller units to claim
this deduction, the benefit has been extended to units employing 50 regular workmen.
To increase employment generation incentive to taxpayers across all sectors (who are subject to tax
audit), where emoluments paid to an employee are less than or equal to INR 25,000 per month, the
taxpayer will be eligible for deduction of 30% of additional wages paid to new regular workmen in a
factory for a period of three years wherein the workmen are employed for not less than 240 days in a
year. The benefits of this incentive would also be available in the first year of business, on
emoluments paid to all employees. However, no deduction shall be allowed in respect of cost
incurred on employees for whom the Government has paid the entire contribution under the
Employees‟ Pension Scheme, and for employees who do not participate in a recognised provident
fund. This will be effective from tax year 2016/17 onwards.
Amortisation of cost of spectrum fee for Telecom operators
There was no clarity as to whether spectrum fees paid for by a telecom service provider would be
covered within the scope of amortisation provisions, or would be eligible for depreciation claim at the
rate of 25%, treating the spectrum fees as an intangible asset. The government has now clarified, by
inserting a new provision, that it will allow amortisation of capital expenditure incurred and actually
paid by the taxpayer for acquiring the right to use spectrum for telecommunication services, in equal
instalments over the period of useful life of the spectrum licence. This will be effective from tax year
2016/17 onwards.

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Patent Box Regime
In order to encourage companies to locate high-value jobs associated with the development,
manufacture, and exploitation of patents in India, the government has introduced a concessional
taxation regime for income from patents. Accordingly, income by way of royalty in respect of a
patent developed and registered in India earned by an eligible taxpayer shall be subject to tax at the
rate of 10% (plus surcharge and cess) on a gross basis.
An eligible taxpayer means a person resident in India, who is the true and first inventor of the
invention, and whose name is entered on the patent register as the patentee.
This will be applicable from the tax year 2016/17.
Tax incentive of capital expenditure on certain specified businesses
Capital expenditure is allowed at 150%/100% up to 31 March 2017 in respect of the following
specified businesses:
 Setting up and operating cold chain facilities.
 Setting up and operating warehousing facilities for storage of agriculture produce.
 Setting up and operating an inland container depot, freight station, or warehousing facility for
storage of sugar, beekeeping, and honey and beeswax production.
 Laying and operating a cross-country natural gas or crude or petroleum oil pipeline network
for distribution, including storage facilities being an integral part of such a network.
 Building and operating a hotel of two-star or above category in India.
 Building and operating a hospital with at least 100 beds.
 Developing and building a housing project under a scheme for slum redevelopment or
rehabilitation framed by the government.
 Developing and building specified housing projects under an affordable scheme of the
central/state government.
 Investing in a new plant or newly installed capacity in an existing plant for production of
fertiliser.
In case of certain specified businesses (commencing operations on or after 1 April 2012), such as
cold chain facility, warehousing for agriculture produce, hospital with at least 100 beds, notified
affordable housing projects and production of fertiliser, the deduction is 150% of the capital
expenditure incurred on or after 1 April 2012.
The following characteristics and conditions may be noted:
 Any sum received or receivable in cash or in kind on transfer, etc. of the capital asset shall be
considered as business income if expenditure on such an asset has been allowed as a deduction
under this section.
 Any loss computed in respect of the above specified businesses shall be allowed to be offset or
carried forward and offset only against the profits and gains of specified businesses.

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  The specified business should:
o not be set up by splitting up or reconstruction of a business already in existence
o not be set up by transfer of used machinery or plant exceeding 20% of the total value of
the machinery or plant used in such business, and
o have been approved by the prescribed authority (i.e. the government).
Besides the above, capital expenditure incurred on acquisition of asset (individual or aggregate)
exceeding INR 10,000 per day shall be ignored for the purposes of computing the actual cost unless
such payment was made
 by an account payee bank cheque/draft, or
 through the electronic clearing system through a bank account.
This will be effective from tax year 2018/19 onwards.
Research and development (R&D) expenditure
A weighted deduction of 200% and 175% of expenditure is available up to 31 March 2017 in respect
of expenditure incurred on scientific research in an in-house R&D facility approved by the prescribed
authority for companies engaged in specified businesses and in research associations, universities,
etc., respectively. Such weighted deduction will be restricted to 150% of the expenditure from tax
year 2017/18 to tax year 2019/20. Thereafter, deduction will be restricted to 100% of the expenditure.
A payment made to an approved research association undertaking research in the social sciences or in
statistical research, or to an Indian company to be used by it for scientific research, is eligible for a
weighted deduction of 125% of the payment made up to 31 March 2017. Such deduction will be
restricted to 100% of the expenditure from tax year 2017/18 and onwards.
Contributions made to any National Laboratory, approved scientific research associations,
universities, and the Indian Institute of Technology are eligible for a deduction of 200% of the
contributions made up to 31 March 2017. Such weighted deduction will be restricted to 150% of the
expenditure from tax year 2017/18 to tax year 2019/20. Thereafter, deduction will be restricted to
100% of the expenditure.
 DEDUCTIONS U/S 80 C
The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The
various investment avenues or expenses that can be claimed as tax deductions under section 80c are as
below;
1. Life Insurance premium paid on a policy taken on his own life, life of the spouse or any child (child
may be dependent/ independent ). In the case of a Hindu undivided family, policy may be taken on the
life of any member of the family. The premium paid should be maximum of 20% of sum assured .
2. Any sum deducted from salary payable to a Government employee for the purpose of securing him
a deferred annuity (subject to a maximum of 20% of salary)

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3. Contribution towards statutory provident fund and recognized provident fund.
4. Contribution towards 15 year public provident fund (maximum of Rs 70,000).
5. Contribution towards an approved superannuation fund
6. Subscription to National Savings Certificates.
7. Contribution for participating in the Unit-Linked Insurance Plan (ULIP) of Unit
8. Contribution for participating in the unit-linked insurance plan (ULIP) of LIC Mutual Fund (i.e.
Dhanraksha plan of LIC Mutual Fund)
9. Payment for notified annuity plan of LIC (i.e. Jeevan Dhara, Jeevan Akshay New Jeevan Dhara, etc
) or any other insurer.
10. Subscription towards notified units of Mutual Fund or UTI
11. Contribution to notified pension fund set up by Mutual Fund or UTI .
12. Any sum paid (including accrued interest) as subscription to Home Loan Account Scheme of the
National Housing Bank
13. Any sum paid as tuition fees to any university/college/educational institution in India for full time
education.
14. Five year Bank or Post office Tax saving Deposits
15. Five year Bank or Post office Tax saving Deposits
16. Subscription to any notified bonds of NABARD
17. Fixed Deposit of Bank for 5 Years.

 SECTION 80D
If the following conditions are satisfied then an assessee may claim deduction under this section.
• The taxpayer is an individual or a Hindu undivided family .
• Insurance premium is paid by the taxpayer in accordance with the scheme framed in this behalf by
the General Insurance Corporation of India and approved by the Central Government. The scheme is
known as “mediclaim” insurance policy.( The amount deposited in a similar scheme of any other
insurer who is approved by the Insurance Regulatory and Development Authority shall also be eligible
for deduction.)
• The aforesaid premium is paid by cheque
• Mediclaim policy is taken on the health of the taxpayer, on the health of spouse, dependent parents
or dependent children of the taxpayer. In case of HUF on the health of any member of the family.
Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens it is Rs 30,000. For
very senior citizen above the age of 80 years who are not eligible to take health insurance, deduction is
allowed for Rs 30,000 toward medical expenditure.

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Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be
claimed as tax deductions. Remember, this is not over and above the individual limits as explained
above. (Family includes: Self, spouse, dependent children and parents).

 SECTION 80E – INTEREST ON HIGHER EDUCATION LOAN

Deduction In Respect Of Repayment of Loan Taken For Higher Education – Section 80e
Deduction is available if:-
• Assessee is an individual.
• He has taken a loan from any financial institution (bank) or an approved charitable institution.
• The loan is taken is for the purpose of pursuing his higher education.
• During the previous year he has repaid some amount as interest on such loan and carry forward up to
7 subsequent years.
• Such amount is paid out of his income chargeable to tax
AMOUNT OF DEDUCTION
The entire amount paid by way of interest on such
Period of Deduction
Further, the deduction shall be allowed for the previous year in which the assessee starts repaying the
loan or interest thereon and seven previous years immediately succeeding it or until the loan together
with interest thereon is paid by the assessee in full , whichever is earlier.
NOTE Higher education means full-time studies for any graduate or post-graduate course in
engineering, medicine, management or for postgraduate course in applied science or pure sciences
including mathematics and statistics.

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  DONATION TO CERTAIN FUNDS, CHARITABLE INSTITUTION ETC.
(SECTION 80G)
A. Donations made to following are eligible for 100% deduction
without any qualifying limit.
1. Prime Minister‟s National Relief Fund
2. National Defence Fund
3. Prime Minister‟s Armenia Earthquake Relief Fund
4. The Africa (Public Contribution - India) Fund
5. The National Foundation for Communal Harmony
6. Approved university or educational institution of national eminence
7. The Chief Minister‟s Earthquake Relief Fund, Maharashtra
8. Donations made to Zila Saksharta Samitis.
9. The National Blood Transfusion Council or a State Blood Transfusion Council.
10. The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air Force Central
Welfare Fund.
B. Donations made to the following are eligible for 50% deduction without any qualifying limit.
1. Jawaharlal Nehru Memorial Fund
2. Prime Minister‟s Drought Relief Fund
3. National Children‟s Fund
4. Indira Gandhi Memorial Trust
5. The Rajiv Gandhi Foundation.
C. Donations to the following are eligible for 100% deduction subject to qualifying limit (i.e.
10% of adjusted gross total income).
1. Donations to the Government or a local authority for the purpose of promoting family planning.
2. Sums paid by a company to Indian Olympic Association
D. Donations to the following are eligible for 50% deduction subject to the qualifying limit (i.e.
10% of adjusted gross total income).
1. Donation to the Government or any local authority to be utilized by them for any charitable
purposes other than the purpose of promoting family planning.
2. Any authority set up for providing housing accommodation or for town planning
3. Any notifies temple, mosque, gurudwara, church or other place for renovation and repairs
4. Any other fund constituted under this section
AMOUNT OF DEDUCTION
The quantum of deduction is as follows :-
Category A- 100 % of amount donated

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Category B -50 % of the amount donated in the funds
Category C – 100% of the amount donated in the funds subject to maximum limit of 10% of Adjusted
GTI.(Gross Total Income)
Category D – 50% of the amount donated in the funds subject to maximum limit of 10% of Adjusted
GTI.
The total of these deductions under categories A,B,C, & D is the quantum of deduction under this
section without any maximum amount.
Adjusted gross Total income for this purpose means his gross total income minus long-term capital
gain, short term capital gain taxable u/s 111A, and all deductions u/s 80CCC to 80U except any
deduction under this section.
 DEDUCTION ALLOWED TO A PERSON WITH DISABILITY -
SECTION 80U
To help a disabled person by reducing his tax burden, this section has been incorporated. Following
are the provisions.
• The assessee is an individual being a resident
• He is a person with disability of 40% or more than 40%. (Blindness, low vision, hearing impaired,
locomotors disability, Mental etc.)
• He is certified by the medical authority to be a person with disability, at any time during the previous
year.
• He furnishes a certificate issued by the medical authority in the prescribed form along the return of
income
AMOUNT OF DEDUCTION
A fixed deduction of Rs. 75,000 in case of a person with disability of 40% or more and Rs. 1,25,000 in
case of a person with severe disability.(having any disability over 80%)
 EXEMPTED INCOME:
1. Agriculture Income [Section 10(1)]
2. Any sum received by a Co-parcener from Hindu Undivided Family (H.U.F.) [Section 10(2)]
3. Share of Income from the Firm [Section 10(2A)]
4. Interest paid to Non-Resident [Section 10(4)(i)]
5. Interest to Non-Resident on Non-Resident (External) Account [Section 10(4)(ii)]
6. Interest paid to a person of Indian Origin and who is Non-Resident [Section 10(4 B)]
7. Travel Concession to an Indian Citizen Employee [Section 10(5)]
8. Remuneration received by an individual who is not a citizen of India [Section 10(6)]
9. Tax paid by Government or Indian concern on Income of a Foreign Company [Section 10(6A),
(6B), (6BB) and (6C)]

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10. Perquisites and Allowances paid by Government to its Employees serving outside India [Section
10(7)]
11. Employees of Foreign Countries working in India under Cooperative Technical Assistance
Programme [Section 10(8)]
12. Income of a Consultant [Section 10(8A)]
13. Income of Employees of Consultant [Section 10(8B)]
14. Income of any member of the family of individuals working in India under co-operative
technical assistance programmes [Section 10(9)]
15. Gratuity [Section 10(10)]
16. Commuted value of pension received [Section 10(I0A)]
17. Amount received as leave encashment on retirement [Section 10(10AA)]
18. Retrenchment compensation paid to workmen [Section 10(10B)]
19. Payment received under Bhopal Gas Leak Disaster (Processing of Claims) Act 1985 [Section 10
(10BB)]
19A. Compensation received in case of any disaster [Section 10(10BC) ]
20. Retirement Compensation from a Public Sector Company or any other Company [Section 10
(10C)]
21. Income by way of tax on perks [Section 10(10CC)]
22. Any sum received under a life insurance policy [Section 10(10D)]
23. Payment from Statutory Provident Fund [Section 10(11)]
24. Payment from Recognised Fund [Section 10(12)]
25. Payment from Superannuation Fund [Section 10(13)]
26. House Rent Allowance [Section 10(13A) Read with Rule 2A]
27. Any Allowance given for meeting Business Expenditure [Section 10(14)]
28. Interest Incomes [Section 10(15)]
29. Lease rental income of a foreign government or foreign enterprise from leasing of
aircraft/aircraft engine to an Indian company [Section 10(15A)]
30. Scholarship [Section 10(16)]
31. Allowance of M.P./M.L.A.Ior M.L.C. [Section 10(17)]
32. Awards Instituted by Government [Section 10(17A)]
33. Pension received by certain winners of gallantry awards [Section 10(18)]
34. Family pension received by family members of armed forces including para military forces
[Section 10(19)]
35. Income from one palace of a former ruler [Section 10(19A)]
36. Income of a local authority [Section 10(20)]
37. Income of scientific research association [Section 10(21)]

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38. Income of a News Agency [Section 10(22B)]
39. Income of some Professional Institutions [Section 10(23A)]
40. Exemption of Income Received by Regimental Fund [Section 23AA]
41. Income of a Fund set-up for the welfare of employees or their dependents
42. Income of a pension fund set up by LIC or other insurer [Section 10(23MB)]
43. Income of Institutions established for development of Khadi and Village Industries
44. Income of State Level Khadi and Village Industries Board [Section 10(23BB)]
45. Income of certain Authorities set up to manage Religious and Charitable Institutions
46. Income of European Economic Community [Section 10(23BBB)]
47. Income of a SAARC Fund for regional projects [Section 10(23BBC)]
48. Any income of Insurance Regulatory and Development Authority [Section 10(23BBE)]
49. Income of Prasar Bharti [Section 10(23BBH)] [Inserted by the Finance Act 2012, w.e.f. 2013-
14]
50. Any income received by a person on behalf of following Funds [Section 10(23C)]
51. Income of Mutual Fund [Section 10(23D)]
52. Exemption of income of a securitisation trust [Section 10(23DA)j [w.e.f.A.Y. 2014-15]
53. Income of Investor Protection Fund [Section 10(23EA)]
54. Income of the Credit Guarantee Trust for Small Industries [Section 10(23EB)]
55. Exemption of income of investor protection fund of depository [Section 10(23ED)] [w.e.f. A.Y.
2014-15]
56. Exemption for Certain Incomes of a Venture Capital Company or Venture Capital Fund from
Certain Specified Business or Industries [Section 10 (23FB)]
57. Income of Registered Trade Unions [Section 10(24)]
58. Income of Provident and Superannuation Funds [Section 10(25)]
59. Income of Employee‟s State Insurance Fund [Section 10 (25A)]
60. Income of Schedule Tribe Members [Section 10(26) and 10(26A)]
61. Income of Sikkimese individual [Section 10(26AAN] (With retrospective effect from 1-4-1990)
62. Regulating the marketing of agricultural produce [Section 10[26AAB]
63. Income of a corporation set-up for promoting the interests of Scheduled Castes, Scheduled
Tribes or Backward Classes [Section 1 0(26B)]
64. Income of a corporation set-up to protect the interests of Minorities [Section 10(26BB)]
65. Any income of a corporation for ex-servicemen [Section 10(26BBB)]
66. Income of cooperative society looking after the interests of Scheduled Castes or Scheduled
Tribes or Both [Section 10(27)]
67. Any income accruing or arising to Commodity Boards etc. [Section 10(29A)]
68. Amount received as subsidy from or through the Tea Board [Section 10(30)]

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69. Amount received as subsidy from or through the concerned Board [Section 10(31)]
70. Income of child clubbed uls 64 (IA) [Section 10(32)]
71. Income from transfer of capital assets of UTI [Section 10(33)]
72. Income by way of dividend from Indian company [Section 10(34)]
73. Exemption of income to a shareholder on buyback of shares of unlisted company [Section 10
(34A) [w.e.f. A.Y. 2014-15]
74. Income from units of UTI and other mutual funds [Section 10(35)]
75. Exemption of income from securitisation trust [Section 10(35A)] [w;e.f A.Y. 2014-15]
76. Income from sale of shares in certain cases [Section 10(36)]
77. Capital Gain on compulsory acquisition of urban Agricultural Land [Section 10(37)]
78. Long Term Capital Gain on transfer of shares and securities covered under Security Transaction
Tax (STT) [Section 10(38)]
79. Income from international Sporting event [Section 10(39)]
80. Income received as grant by a subsidiary company [Section 10(40)]
81. Income from transfer of asset of an undertaking engaged in the business of generation,
transmission or distribution of power [Section 10(41)]
82. Income of a body or authority set up by two countries [Section 10(42)]
83. Reverse Mortgage [Sec. 10(43)]
84. New Pension System Trust [Sec. 10(44)]
85. Exemption of Allowance or perquisite to chairman/member of UPSC [Section 10 (45)]
86. Exemption of „specified income‟ of certain bodies or authorities [Section 10(46)]
87. Exemption of Income of notified „Infrastructure debt fund‟ [Section 10(47)]
88. Exemption of Income of a foreign company from sale of Crude Oil in India
89. Exemption of income of National Financial Holdings Company [Section 10(49)] [w.e.f. A.Y.
2014-15]

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