Determination of tax where total income includes income on which no tax is payable
[Section-190 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Where there is included in the total income of an assessee any income on which no income-tax is payable under the provisions of this Act, the assessee shall be entitled to a deduction, from income-tax with which he is chargeable on his total income, of an amount equal to the income-tax calculated at the average rate of income-tax on the amount on which no income-tax is payable.
FAQs on Section 190 of Income Tax Act 2025
What does Section 190 of the Income Tax Act, 2025 deal with?
Section 190 provides for a deduction from tax payable when the total income includes any income on which no income-tax is payable under the provisions of the Act.
Who is eligible for the deduction under Section 190?
Any assessee whose total income includes income on which no income-tax is payable under the Act is eligible.
What kind of income is covered under ‘income on which no tax is payable’?
It refers to specific incomes that are exempt or non-taxable as per provisions of the Act, but are still included in the total income.
How is the deduction calculated under Section 190?
The deduction is equal to the income-tax calculated at the average rate of income-tax on the amount of income on which no tax is payable.
What is meant by ‘average rate of income-tax’?
It is the rate arrived at by dividing the total income-tax payable (before this deduction) by the total income of the assessee.
Is the income excluded from total income under Section 190?
No, the income is included in total income, but a deduction from tax is allowed for it.
Does this deduction affect the computation of total income?
No, it affects only the computation of the tax payable, not the total income.
Is this provision applicable automatically?
Yes, once the conditions are satisfied, the deduction is to be allowed as per the section.
Can this benefit be claimed by all types of assessees?
Yes, there is no restriction on the category of assessee; it applies to all.
From which date is Section 190 applicable?
It is applicable from 1st April, 2026, as per the Income Tax Act, 2025.
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