TaxTMI 
TaxTMI 
Comparison of SCHEDULE III "INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF ELIGIBLE PERSONS" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)
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....ies and specific sectors (tea, rubber, khadi, securitisation, investor protection funds, strategic petroleum reserves etc.). The Schedule operates by reference to conditions and statutory notes; the effective date or enactment date is Not stated in the document. Background & Scope Statutory hooks: The Schedule is linked by reference to section 11 of the Income Tax Bill, 2025. It purports to operate in computing "total income of a tax year" and excludes certain incomes "subject to the conditions mentioned" in column D. Coverage includes personal allowances and pensions, agricultural land compulsory acquisition gains, subsidies for specified commodities, incomes of research associations, professional associations, khadi/village industries i....
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...., certain perquisites where employer pays tax, rent allowances for residence, and allowances incurred in performance of duties (Sl. Nos.5-13). * Exclusions for pensions and family pensions in respect of gallantry awardees and armed forces deaths in operational duties (Sl. Nos.14-16). * Exclusion of limited incomes included u/s 99(1)(d) up to Rs.1,500 per minor child (Sl. No.17). * Capital gains from compulsory acquisition of agricultural land under specified conditions (Sl. No.18). * State/area-based exclusions for Scheduled Tribe members or Sikkimese on incomes from particular areas and for dividends/interest (Sl. Nos.19-20). * Sectoral subsidies (tea, rubber, coffee, cardamom etc.) where certified by concerned Boards (Sl. No.21)....
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....ears, compensation received on or after 1-4-2004), conditions of approval (research/professional/khadi institutions), notification requirements (Central Government), certificate filing (subsidy under concerned Board), and investment modes for funds (section 350 referenced). Several provisions explicitly state "Nil" or omit further conditions. Illustrations * Employee A receives partial NPS withdrawal of Rs.100,000 after satisfying PFRDA conditions. Exclusion is limited to Rs.25,000 (25% of contributions), subject to PFRDA terms. * Firm profits distributed to Partner P as per partnership deed; the partner's share received in his hands is excluded from his total income provided the distribution follows the deed ratio (Sl. No.2). * ....
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....se (Sl. No. 10): Document 2 (Bill) contains an additional clause (c): "such perquisite is paid irrespective of section 200 of the Companies Act, 1956 (1 of 1956)." Document 1 (Act) omits this clause. Practical impact: The Bill's additional clause expressly addresses company withholding provisions (s. 200, Companies Act, 1956) suggesting an intention to clarify that employer payment of tax on perquisite is effective even where Companies Act withholding rules might otherwise apply. Its omission in the Act could create uncertainty about interaction with company law withholding obligations and whether employer tax-payment satisfies all compliance facets. * Cross-references to section 99 sub-subparagraphs (Sl. No. 1 and Sl. No. 17): Doc....
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....ng (various notes) differ in punctuation and clause references. * Khadi and Village Industries Commission Act citation: Document 1 note shows "61 of 1956" while Document 2 shows "91 of 1956". Practical impact: Incorrect or inconsistent cross-references and dates can cause confusion when applying definitions or locating the correct regulatory instrument. A wrong Act number for the Khadi Act or an incorrect year for regulations can lead to mis-identification of the applicable normative instrument, potentially delaying compliance or misapplying exemption conditions until clarified by official corrigenda. * Nil / blank condition fields: In a few Sl. Nos., Document 1 expressly records "Nil" under Conditions whereas Document 2 leaves space....