Comparison of SCHEDULE VII "PERSONS EXEMPT FROM TAX" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... date: Not stated in the document. Background & Scope Statutory hook: "See section 11" (Schedule VII attached to the Income Tax Bill, 2025 - Old Version). The Schedule sets out a Table of eligible persons (column B) and conditions for exemption (column C). Notes below the Table define expressions used in specified entries. Coverage: persons and entities enumerated in 48 serial entries, ranging from regimental funds, notified welfare funds, pension and insurance funds, statutory boards and authorities, relief funds, universities and hospitals, mutual funds, approved employee funds, commodity boards, national funds, infrastructure and developmental financing institutions, among others. The Schedule provides conditions applicable to many ent....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bt funds), institutions set up for financing infrastructure (with time-limited exclusion) and developmental financing institutions licensed by RBI (time-limited exclusion with extension power for Central Government). Defined terms and cross-references: Several Notes (1-6) supply definitional cross-references-e.g., "Controller of Insurance" per section 2(5B) of the Insurance Act, 1938; "khadi" and "village industries" per Khadi and Village Industries Commission Act, 1956; "public financial institution" per section 2(72) Companies Act, 2013; meanings of "Scheduled Castes/Scheduled Tribes" per article 366(24)/(25) of the Constitution; "minority community" as notified by the Central Government; and a multi-part definition of "ex-servicemen". ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... power to extend by up to five more years subject to conditions). * Notification requirement by Central Government for certain bodies to be eligible (e.g., Sl. Nos. 42, 46, 47, 48). Not stated in the document: any formal mechanism for revocation of notifications or detailed transitional rules for entities moving between notified and non-notified status. Illustrations * Example 1: A university receiving 70% of its receipts as Government grants in a tax year would be "substantially financed" (subject to prescribed percentage). Not stated in the document: the exact percentage threshold; it refers to "as prescribed". * Example 2: An infrastructure financing institution notified by the Central Government in tax year X would be exempt fro....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....duces ambiguity in statutory text and assists tax administrators and taxpayers in interpreting the anonymous-donation treatment. Document 2 may retain the earlier typographical error and thus could cause uncertainty until corrected. * Wording and punctuation variations: Several minor differences in wording and punctuation appear across the two texts (for example, Document 1 uses "in such manner as may be prescribed" at Sl. No.2(b), while Document 2 uses "in such manner as prescribed"; Document 1 uses "Sl. No" styling, Document 2 uses "Sl.No." or similar). Document 2 contains a number of typographical inconsistencies (e.g., "Central Actor State Act" at Sl. No. 29 and broken spacing characters). * Practical impact: These drafting and typo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... * Specific enumerations of religious places in Sl. No. 5: Document 1 lists "temples, gurudwaras, wakfs, churches, synagogues, agiaries or a mutt or other places of public religious worship". Document 2 lists "mosques, temples, gurudwaras, wakfs, churches, synagogues, agiaries or other places of public religious worship" (note inclusion of "mosques" and omission of the phrase "a mutt"). * Practical impact: The slight variation in enumerated religious institutions may reflect drafting inconsistency; however both texts capture core categories of public religious worship. Any omission or change of a category in the enacted text could have material consequences for institutions that expect exemption; the enacted Act (Document 1) should be ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e evident; stakeholders should confirm the enacted text for precise compliance timelines and notification requirements. Practical Implications * Compliance and risk areas: Entities claiming exemption must ensure they meet the enumerated substantive conditions (non-profit/philanthropic purpose, substantial government financing thresholds where specified, approvals/notifications where required). Failure to secure required approvals/notifications (e.g., approval by Principal Commissioner or Central Government notification) risks denial of exemption. The multiple cross-references require careful statutory mapping when preparing tax filings. * Record-keeping/evidence points: The Schedule implies need for documentary proof of objects/purpose....