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Exempted Incomes (Tax-FREE): Section-10(23AAA),Section-10(23MB),Section-10(23B), Section-10(23BB)


41. Income of a Fund set-up for the welfare of employees or their dependents [Section 10(23AAA)]

Any income of such fund which is approved by Conmiissioner of Income-tax shall be fully exempted provided its income is applied wholly and exclusively for the objects for which it is established.

The CBDT has notified following purposes for which the fund is expected to help its members or their dependents—

  1.      Cash amount given to a member of the fund—

  2.      on superannuation, or

  3.      in the event of member’s own illness or illness of his/her spouse or dependent children; or

  4.      to meet the cost of education of dependent children of members.

  5.      Cash amount given to the dependents of members in the event of death of such a member.

42. Income of a pension fund set up by LIC or other insurer [Section 10(23B)]

Income of an institution constituted as a public charitable trust or society which is established for the development of khadi and village industries (not for profit purpose) is exempt from tax, if following conditions are satisfied:


1)         Income is attributable to the business of production, sale, or marketing, of khadi or products of village industries.


2)         Institution applies its income, or accumulates it for application, solely for the development of khadi or village industries or both


3)         Institution is approved by the Khadi and Village Industries Commission.

43. Income of Institutions established for development of Khadi and Village Industries [Section 10(23B)]

The public charitable trusts and societies registered under the Societies Registration Act, 1860 will be entitled to claim exemption from Income-tax for the income derived by such institutions from the production, sale or marketing of Khadi or products of village industries. The exemption will not be allowed unless the institution applies its income or accumulates it for application solely for the development of Khadi or Village Industries. Only such institutions will qualify for exemption which are approved by Khadi or Village Industries Commission.

The approval given under this section shall be withdrawn in following cases if

  1. such association or institution has not applied its income as per conditions prescribed

  2. the activities of the association or institution are not being carried on in accordance with conditions subject to which such institution was approved.

44. Income of State Level Khadi and Village Industries Board [Section 10(23BB)]

Any income from an authority (whether known as the Khadi and Village Industries Board, or by any other name) established in a State by or under a State or Provincial Act for the development of Khadi or Village Industries in the State, shall be exempted from tax.
More Topics... @ Exempted Incomes
Exempted Incomes : Sec.10(1) to Sec.(4)(ii)
Exempted Incomes : Section-10(7)-Section-10(9)
Exempted Incomes : Section-10(10)-Sec-10(A)-Sec-10(AA)-Sec-10(B)
Exempted Incomes : Section-10(10BB)-Sec-10(10BC)-Sec-10(C)
Exempted Incomes : Section-10(10CC),Sec-10(10D),Sec-10(11),Sec-10(12),Sec-10(13)
Exempted Incomes : Section-10(15A),Sec-10(16),Sec-10(17),Sec-10(17A)
Exempted Incomes : Section-10(18),Sec-10(19),Sec-10(19A),Sec-10(20)
Exempted Incomes : Section-10(21),Sec-10(22B),Sec-10(23A),Sec-10(23AA)
Exempted Incomes : Section-10(23AAA),Sec-10(23MB),Sec-10(23A),Sec-10(23AA)
Exempted Incomes : Section-10(23BBA),Sec-10(23BBB),Sec-10(23BBC),Sec-10(23BBE),Sec-10(23BBH)
Exempted Incomes : Section-10(23C),Sec-10(23D),Sec-10(23DA),Sec-10(23EA),Sec-10(23EB),Sec-10(ED)
Exempted Incomes : Section-10(23FB),Sec-10(24),Sec-10(25),Sec-10(25A),Sec-10(26A)
Exempted Incomes : Sec.10(4B) to Sec.10(6)
Exempted Incomes : Section-10(26AAN),Sec-10(26AAB),Sec-10(26B),Sec-10(26BB),Sec-10(26BBB)
Exempted Incomes : Section-10(27),Sec-10(29A),Sec-10(30),Sec-10(31),Sec-10(32)
Exempted Incomes : Section-10(33),Sec-10(34),Sec-10(34A),Sec-10(35),Sec-10(35A),Sec-10(36)
Exempted Incomes : Section-10(37),Sec-10(38),Sec-10(39),Sec-10(40),Sec-10(41)
Exempted Incomes : Section-10(42),Sec-10(43),Sec-10(44),Sec-10(45),Sec-10(46),Sec-10(47),Sec-10(48),Sec-10(49)
Exempted Incomes : Section 10(6A), (6B), (6BB) and (6C)
List of Exempted Incomes (Tax-Free) Under Section-10
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