Section 10 of Income Tax Act for AY 2023-24: List of 50 Tax Free Income or Exempted Income

Section 10 (41):

Any income arising from transfer of a capital asset, being an asset of an undertaking engaged in the business of generation or transmission or distribution of power where such transfer is effected on or before the 31.03.2006, to the Indian company notified under section 80-IA(4)(v)(a);

Section 10 (42):

Any CG specified income arising to a body or authority which:

• Established or constituted or appointed under a treaty or an agreement entered into by CG with two or more countries or a convention signed by CG;
• Established or constituted or appointed not for the purposes of profit;
• Notified by the Central Government in for the purposes of this clause.

Section 10 (43):

Any amount received by an individual as a loan, either in lump sum or in instalment, in a transaction of reverse mortgage referred to in section 47(xvi);

Section 10 (44):

Any income received by any person for, or on behalf of, the New Pension System Trust established on 27.02.2008 under the provisions of the Indian Trusts Act, 1882.

Section 10 (45) of Income Tax Act

[Clause(45) of section 10 has been omitted w.e.f. 1st April, 2021 by the Finance Act 2020]

Section 10 (46):

Any CG specified income arising to a body or authority or Board or Trust or Commission or a class thereof which:

• (a) has been established or constituted by or under a Central, State or Provincial Act, or constituted by CG/SG, 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 CG for the purposes of this clause.

CBDT vide Notification No. 78/2021, S.O. 2774(E), dated 09-07-2021: In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Haryana Building and Other Construction Workers Welfare Board’ (PAN AAATH6995H), a Board constituted by the State Government of Haryana, in respect of the following specified income arising to that Board, namely:—

• (a) Registration fees and yearly subscription collected from Construction Workers registered with the Haryana Building and Other Construction Workers Welfare Board as beneficiaries;
• (b) Proceeds of the cess collected under the Building & Other Construction Workers Welfare Cess Act, 1996 (28 of 1996) and rules there under; and
• (c) Interest income received from investment.

This notification shall be effective subject to the conditions that Haryana Building and Other Construction Workers Welfare Board, —

• (a) shall not engage in any commercial activity;
• (b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and
• (c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961
• (d) shall file the Audit report along with the Return, duly verified by the accountant as provided in explanation to section 288(2) of the Income-tax Act, 1961 along with a certificate from the chartered accountant that the above conditions are satisfied.

This notification shall be deemed to be applied for the period from 01-06-2020 to 31-03-2021 in the financial year 2020-2021 and shall apply from the financial years 2021-2022, 2022-2023, 2023-2024 and 2024-2025.

CBDT vide Notification No. 72/2021, S.O. 2246(E), dated 09-06-2021 notifies for the purposes of the said clause, ‘Competition Commission of India’ (PAN AAAGC0012M), a Commission established under sub-section (1) of Section 7 of the Competition Act, 2002 (12 of 2003), in respect of the following specified income arising to the said Commission, namely:-

(a) Amount received in the form of Government grants;
(b) Fee received under the Competition Act, 2002; and
(c) Interest income accrued on (a) and (b) above.

This notification shall be effective subject to the conditions that Competition Commission of India, –

(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and
(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
(d) shall file the Audit report along with the Return, duly verified by the accountant as provided in explanation to section 288(2) of the Income-tax Act, 1961 along with a certificate from the chartered accountant that the above conditions are satisfied.

This notification shall apply with respect to the financial years 2021-2022, 2022-2023, 2023-2024, 2024-2025 and 2025-2026.

CBDT vide Notification No. 8/2021 dated 22-02-2021 notifies for the purposes of the clause(46) of section 10, ‘Haryana State Pollution Control Board’ (PAN AAAJH0446F), a Board constituted by the State Government of Haryana under the Water (Prevention and Control of Pollution) Act, 1974, in respect of the following specified income arising to the Board, namely:-

• (a) Grant from Central Government;
• (b) Grant from State Government; and
• (c) Consent fee for permission for setting up industry in the state of Haryana;
• (d) Analysis fees or air ambient quality survey fees;
• (e) Testing fees;
• (f) Authorization fees;
• (g) NOC fees;
• (h) Cess reimbursement and cess appeal fees;
• (i) Fees received under RTI Act, 2005;
• (j) Public hearing fees;
• (k) Recognition fees;
• (l) Interest on loan and advances given to staff; and
• (m) Interest on fixed deposit.

Such specified income has been notified subject to the conditions that Haryana State Pollution Control Board (HSPCB),-

• (a) shall not engage in any commercial activity;
• (b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and
• (c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
• (d) shall file the Audit report along with the Return, duly verified by the accountant as provided in explanation to section 288(2) of the Income-tax Act, 1961 along with a certificate from the chartered accountant that the above conditions are satisfied.

HSPCB notified for the purpose of clause (46) of section 10 with respect to the assessment years 2020-21, 2021-2022, 2022-2023, 2023-2024 and 2024-2025.

CBDT vide Notification No. 73/2020 dated 11-09-2020 notifies for the purposes of Section 10(46), ‘District Mineral Foundation Trust’ constituted as a ‘class of Authority’, in respect of the following specified income arising to that Authority:

• (a) Contribution by lease Holder to DMF as per the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015;
• (b) Interest received from lease holders for late payment;
• (c) Any Penalty charged to lease holder;
• (d) Income from Interest on fund available under DMF;
• (e) Interest received on Saving Bank Accounts; and
• (f) Interest received on Excess Fund invested in Term Deposit.

Conditions to be satisfied by each District Mineral Foundation (DMF) Trust:

• Not engage in any commercial activity;
• Activities and the nature of the specified income shall remain unchanged throughout the FY; and
• File ITR in accordance with section 139(4C)(g) of the Income-tax Act, 1961.
• File Audit report along with the Return, duly verified by CA in practice [Refer explanation to section 288(2)]
• Certificate from the chartered accountant that the above conditions are satisfied.

DMF Trust specified for Section 10(46) for the assessment years 2018-19, 2019-20, 2020-2021, 2021-2022 and 2022-2023:

1. Thiruvananthapuram DMF Trust
2. Kollam DMF Trust
3. Pathanamthitta DMF Trust
4. Alappuzha DMF Trust
5. Kottayam DMF Trust
6. Idukki DMF Trust
7. Ernakulam DMF Trust
8. Thirissur DMF Trust
9. Palakkad DMF Trust
10. Malappuram DMF Trust
11. Wayanad DMF Trust
12. Kozhikode DMF Trust
13. Kannur DMF Trust
14. Kasargod DMF Trust
15. District Mineral Foundation – Ahmedabad
16. District Mineral Foundation – Amreli
17. District Mineral Foundation – Anand
18. District Mineral Foundation – Aravali
19. District Mineral Foundation – Banaskantha
20. District Mineral Foundation – Bharuch
21. District Mineral Foundation – Bhavnagar
22. District Mineral Foundation – Botad
23. District Mineral Foundation – Chhotaudepur
24. District Mineral Foundation – Dahod
25. District Mineral Foundation – Devbhumi (Dwarka)
26. District Mineral Foundation – Gandhinagar
27. District Mineral Foundation – Girsomnath
28. District Mineral Foundation – Jamnagar
29. District Mineral Foundation – Junagadh
30. District Mineral Foundation – Kachchh
31. District Mineral Foundation – Kheda
32. District Mineral Foundation – Mahesana
33. District Mineral Foundation – Mahisagar
34. District Mineral Foundation – Morbi
35. District Mineral Foundation – Narmada
36. District Mineral Foundation – Navsari
37. District Mineral Foundation – Panchmahal
38. District Mineral Foundation – Porbandar
39. District Mineral Foundation – Rajkot
40. District Mineral Foundation – Sabarkantha
41. District Mineral Foundation – Surat
42. District Mineral Foundation – Surendranagar
43. District Mineral Foundation – Tapi
44. District Mineral Foundation – Vadodara
45. District Mineral Foundation – Valsad
46. District Mineral Fund Trust, Raipur
47. District Mineral Foundation Trust, Balodabazar-Bhatapara
48. District Mineral Fund Kabirdham
49. District Mineral Foundation Trust Durg
50. Balod Jila Khanij Sansthan Nyas
51. Bastar District Mineral Foundation Trust
52. Narayanpur District Mineral Foundation Trust
53. Kondagaon District Mineral Foundation Trust
54. District Mineral Foundation Trust Fund- Dantewada
55. Sukma District Mineral Foundation Trust
56. Bilaspur District Mineral Foundation Trust
57. Mungeli District Mineral Foundation Trust
58. District Mineral Foundation Trust Janjgir-Champa
59. Raigarh DMF Dept.
60. District Mineral Foundation Trust Surguja
61. District Mineral Foundation Trust Fund-Balrampur
62. District Mineral Foundation Trust, Surajpur
63. Korea District Mineral Foundation Trust
64. Dhanbad Zila Khanij Foundation Trust
65. DMFT Hazaribagh
66. Chitradurga District Mineral Foundation Trust
67. Bagalkot District Mineral Foundation Trust
68. District Mineral Foundation Trust, Tumkur
69. District Mineral Foundation Trust, Devangere
70. District Mineral Foundation Trust, Belagavi
71. District Mineral Foundation Trust, Kalaburagi
72. District Mineral Foundation Trust, Chikkamaggaluru
73. District Mineral Foundation Trust, Shivmoga
74. District Mineral Foundation Trust, Koppal
75. District Mineral Foundation Trust, Bengaluru Rural
76. District Mineral Foundation Trust, Bengaluru Urban
77. District Mineral Foundation Trust, Chikballpur
78. District Mineral Foundation Trust, Dakshin Kannad
79. District Mineral Foundation Trust Dharwad
80. District Mineral Foundation Trust, Kodagu
81. District Mineral Foundation Trust, Raichur
82. District Mineral Foundation Trust, Ramanagara
83. District Mineral Foundation Trust, Yadgir
84. District Mineral Foundation Trust, Nagpur
85. District Mineral Foundation Trust, Nashik
86. Angul District Mineral Foundation
87. District Mineral Foundation Bolangir
88. District Mineral Foundation, Bargarh
89. District Mineral Foundation Trust, Jajpur
90. District Mineral Foundation, Jharsuguda
91. District Mineral Foundation, Keonjhar
92. District Mineral Foundation, Koraput
93. District Mineral Foundation, Sundargarh
94. Alwar DMFT
95. DMFT Bikaner
96. Nagour DMFT
97. Ariyalur District Mineral Foundation Trust
98. Coimbatore District Mineral Foundation Trust
99. District Mineral Foundation Trust, Coddalore
100. Dharmapuri District Mineral Foundation Trust
101. Mineral Foundation Trust, DINDIGUL
102. Erode District Mineral Foundation Trust
103. District Mineral Foundation Trust, Kanniyakumari
104. District Mineral Foundation Trust, Karur
105. Krishnagiri District Mineral Foundation Trust
106. Namakkal District Mineral Foundation Trust
107. District Mineral Foundation Trust, Pudukkottai
108. Ramnathapuram District Mineral Foundation Trust
109. Salem District Mineral Foundation Trust
110. District Mineral Foundation Trust Theni
111. District Mineral Foundation Trust, Tirunelveli
112. District Mineral Foundation Trust, Tiruvallur
113. District Mineral Foundation Trust, Vilupuram
114. District Mineral Foundation Trust, Virdhunagar
115. District Mineral Foundation Trust Madurai
116. Nagapattinam District Mineral Foundation Trust
117. Perambalur District Mineral Foundation Trust
118. Thanjavur District Mineral Foundation Trust
119. District Mineral Foundation Trust
120. Thiruvarur District Mineral Foundation Trust
121. District Mineral Foundation Trust, Trichy
122. Mineral Foundation Trust, Tirupur
123. District Mineral Foundation Trust Adilabad
124. District Mineral Foundation Trust Kumurambheem-Asifabad
125. District Mineral Foundation Trust Nirmal
126. District Mineral Foundation Trust Mancherial
127. District Mineral Foundation Trust Nizamabad
128. District Mineral Foundation Trust Kamareddy District
129. District Mineral Foundation Trust Medak
130. District Mineral Foundation Trust Sangareddy
131. District Mineral Foundation Trust Siddipet
132. District Mineral Foundation Trust Wanaparthy
133. District Mineral Foundation Trust Jogulamba-Gadwal
134. District Mineral Foundation Trust Vikarabad
135. District Mineral Foundation Trust Rangareddy
136. District Mineral Foundation Trust Medchal-Malkajgiri
137. District Mineral Foundation Trust Yadadri-Bhongir
138. District Mineral Foundation Trust Nalgonda
139. District Mineral Foundation Trust Suryapet
140. District Mineral Foundation Trust Jangaon
141. District Mineral Foundation Trust Warangal Rural
142. District Mineral Foundation Trust Warangal Urban
143. District Mineral Foundation Trust Mahabubabad
144. District Mineral Foundation Trust Jayashankar-Bhupalpally
145. District Mineral Foundation Trust Karimnagar District
146. District Mineral Foundation Trust Jagitial
147. District Mineral Foundation Trust, Peddapalli
148. District Mineral Foundation Trust Rajanna-Siricilla
149. District Mineral Foundation Trust Khammam District
150. District Mineral Foundation Trust Bhadradri-Kothagudam
151. District Mineral Foundation Trust Dehradun

Section 10 (47):

Any income of an infrastructure debt fund, set up in accordance with the prescribed and CG notified guidelines for the purposes of this clause.

CBDT vide Notification No. 74/2020 dated 11-09-2020 notifies the Infrastructure Debt Fund (IDF) namely, the ‘L&T Infra Debt Fund (PAN: AACCL4493R)’ for the purposes of Section 10(47) for the assessment year 2018-2019 and subsequent years subject to the following conditions:

• IDF shall conform to and comply with:
  • Provisions of the Income-tax Act 1961;
  • Rule 2F of the Income-tax Rules 1962;
  • Conditions provided by RBI in this regard, and
• IDF shall file its ITR within due date as required by section 139(4C) of the Income-tax Act, 1961.

Section 10 (48):

Any income received in India in Indian currency by a foreign company on account of sale of crude oil, any other goods or rendering of services, as may be notified by CG in this behalf, to any person in India. Provided that—

• Receipt of such income is pursuant to an agreement or an arrangement entered into or approved by CG;
• Foreign company and the agreement or arrangement are notified by CG in this behalf; and
• Foreign company is not engaged in any activity, other than receipt of such income, in India.

Section 10 (48A):

Any income accruing or arising to a foreign company on account of storage of crude oil in a facility in India and sale of crude oil therefrom to any person resident in India. Provided that—

• (i) the storage and sale by the foreign company is pursuant to an agreement or an arrangement entered into or approved by CG; and
• (ii) having regard to the national interest, the foreign company and the agreement or arrangement are notified by CG in this behalf;

Section 10 (48B):

Any income accruing or arising to a foreign company on account of sale of leftover stock of crude oil, if any, from the facility in India after the expiry or termination of the agreement or the arrangement referred to in clause (48A) subject to CG notified conditions this behalf.

Section 10 (48C):

any income accruing or arising to the Indian Strategic Petroleum Reserves Limited, being a wholly owned subsidiary of the Oil Industry Development Board under the Ministry of Petroleum and Natural Gas, as a result of arrangement for replenishment of crude oil stored in its storage facility in pursuance of directions of the Central Government in this behalf:

Provided that nothing contained in this clause shall apply to an arrangement, if the crude oil is not replenished in the storage facility within three years from the end of the financial year in which the crude oil was removed from the storage facility for the first time;

Section 10 (49):

Any income of the National Financial Holdings Company Limited of any previous year relevant to any assessment year commencing on or before the 1st day of April, 2014.

Section 10 (50):

Any income arising from any specified service provided on or after the date on which the provisions of Chapter VIII of the Finance Act, 2016 comes into force or arising from any e-commerce supply or services made or provided or facilitated on or after the 1st day of April, 2021 or arising from any e-commerce supply or services made or provided or facilitated on or after the 1st day of April, 2020 and chargeable to equalisation levy under that Chapter.

[Clause(50) of section 10 has been amended(substituted) w.e.f. 1st April, 2021 by the Finance Act 2020]

Explanation-1: For the removal of doubts it is hereby clarified that the income referred to in this clause shall not include and shall be deemed never to have been included any income which is chargeable to tax as royalty or fees for technical services in India under this Act read with the agreement notified by the Central Government under section 90 or section 90A.

Explanation-2: For the purposes of this clause,––

• (i) “e-commerce supply or services” shall have the meaning assigned to it in clause (cb) of section 164 of the Finance Act, 2016;
• (ii) “specified service” shall have the meaning assigned to it in clause (i) of section 164 of the Finance Act, 2016.

[Explanation-1 and Explanation-2 of clause (50) of section 10 has been newly inserted w.e.f. 01.04.2021 by the Finance Act 2020]

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