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Exempted Incomes (Tax-FREE): Section-10(23C),Section-10(23D),Section-10(23DA), Section-10(23EA),Section-10(23EB), Sec-10(23ED)


50. Any income received by a person on behalf of following Funds [Section 10(23C)]

Any income received by any person on behalf of :

  1. the Prime Minister’s National Relief Fund ; or

  2.  the Prime Minister’s Fund (Promotion of Folk Art) ; or

  3. the Prime Minister’s Aid to Student’s Fund ; or

  4. The National Foundation for Communal Harmony

  5.      Any educational institution which is

  6.      a non profit earning body and is wholly or substantially financed by the Government;

  7.      a non profit earning body whose aggregate annual receipts do not exceed the prescribed limits (to be notified) ; or

  8.      a non profit earning body other than those mentioned at (a) and (b) above but are approved by the prescribed authority.

  9. any hospital or other institution for the reception and treatment of persons suffering from illness or mental defectiveness or reception and treatment of persons during convalescence or of persons requiring medical attention and existing solely for philanthropic purposes and which:

  10.      is wholly or substantially financed by the Government ; or

  11.      whose aggregate annual receipts do not exceed the prescribed limits (to be notified); or

  12.      other than those mentioned a) and (b) above but is approved by the prescribed authority.

  13. any other fund established for charitable purposes which may be notified by Central Government ; or

  14. any trust or institution set up wholly for religious purposes or purpose which may be notified by the Central Government.

The above exemption shall not be available for the profits and gains of any business which is carried on, on behalf of or by any fund or institution referred in points (iv) and (v) above or to the profits or gains of any business undertaking held under trust for the purposes of any fund or institution referred in points (iv) and (v) above. This amendment has come into effect from assessment year 1984-85.

In case annual receipts of such an institution exceeds ` 1 crore in a previous year, it has to file an application upto 30th September in the succeeding financial year.

Under Section 10(23C) income of institutions specified above shall be exempt from income tax. In certain cases, approvals are required to be taken from prescribed authority in the prescribed manner to became eligible for claiming exemption.

51. Income of Mutual Fund [Section 10(23D)]

Any income of such Mutual Fund set up by other public sector bank or a public financial institution or any fund authorised by Securities & Exchange Board of India or Reserve Bank of India and subject to such conditions as the Central Govt. may, by notification in the Official Gazette, specify in this behalf.

‘Other Public Sector Banks’ means the State Bank of India, all its subsidiary banks and all other’ nationalised banks. The expression ‘public financial institution’ shall have the meaning assigned to it in Section 4A of the Companies Act, 1956.

52. Exemption of income of a securitisation trust [Section 1O(23DA)] [w.e.f. A.Y. 2014-15]

Any income of a securitisation trust from the activity of securitisation shall be exempt.

53. Income of Investor Protection Fund [Section 10(23EA)]

Any income received by an Investor Protection Fund by way of contributions received from recognised stock exchanges and the members thereof shall be fully exempted.

From the assesssment year 2007-08 similar exemption has been extended to Investor Protection Fund set up by Commodity Exchanges also.

54. Income of the Credit Guarantee Trust for Small Industries [Section 10(23EB)]

Such income shall be fully exempted for a period of 5 assessment years commencing with the assessment year 2002-03 to 2006-07.

55. Exemption of income of investor protection fund of depository [Section 10(23ED)] [w.e.f. A.Y. 2014-15]

Any income, by way of contribution received from a depository, of such Investor Protection Fund set up in accordance with the regulations made under SEBI Act, 1992 and the Depositories Act, 1996 by a depository, as the Central Government may specify, by notification in the Official Gazette.
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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