Just a moment...

⚠✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Keyword Search :
AI Tools : New
Ask tax questions in natural language. Powered by AI trained on the TaxTMI legal database. Use AI Tools ➞
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
    6. Text Search
  6. The system will try to fetch results that contains ALL your words.
  7. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
    8. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search ❯
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    NewsBills
    Tax rates under Part I of the First Schedule applicable for the assessment year 2025-26
    NewsBills
    Co-operative Societies - Tax Rates For the assessment year 2025-26
    NewsBills
    Firms - Tax Rates For the assessment year 2025-26
    NewsBills
    Local authorities - Tax Rates For the assessment year 2025-26
    NewsBills
    Companies - Tax Rates For the assessment year 2025-26
    NewsBills
    Rates for deduction of income-tax at source during the financial year (FY) 2025-26 from certain inco...
    NewsBills
    Rates for deduction of income-tax at source from "Salaries", computation of "advance tax" and chargi...
    NewsBills
    Individual, HUF, association of persons, body of individuals, artificial juridical person. - Rate of...
    NewsBills
    Co-operative Societies - Rate of TDS during the FY 2025-26 (Assessment Year 2026-27).
    NewsBills
    Firms - Rate of TDS during the FY 2025-26 (Assessment Year 2026-27).
    NewsBills
    Local authorities - Rate of TDS during the FY 2025-26 (Assessment Year 2026-27).
    NewsBills
    Companies - Rate of TDS during the FY 2025-26 (Assessment Year 2026-27).
    NewsBills
    Rebate under section 87A
    NewsBills
    Incentives to International Financial Services Centre
    NewsBills
    Extension of sunset dates for several tax concessions pertaining to IFSC
    NewsBills
    Exemption on life insurance policy from IFSC Insurance offices
    NewsBills
    Exemption to capital gains and dividend for ship leasing units in IFSC
    NewsBills
    Rationalisation of definition of 'dividend' for treasury centres in IFSC
    NewsBills
    Simplified regime for fund managers based in IFSC
    NewsBills
    Amendment of Section 10 related to Exempt income of Non-Residents
❮
❯
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Open Link
    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    NewsBills
    Tax rates under Part I of the First Schedule applicable for the assessment year 2025-26
    Show AI Summary
    Tax rates: existing graduated income-tax slab structure for individuals and related entities remains unchanged for the assessment year.
    Part I of the First Schedule to the Finance Bill, 2025 prescribes graduated income-tax slabs and corresponding percentage rates for assessment year 2025-26 applicable to individuals, HUFs, associations of persons, bodies of individuals and certain artificial juridical persons. It distinguishes three resident-individual categories by age with differing basic-exemption thresholds and applies graduated marginal rates across successive income bands. The schedule for 2025-26 is stated to be unchanged from the prior assessment year.
    NewsBills
    Co-operative Societies - Tax Rates For the assessment year 2025-26
    Show AI Summary
    Income-tax rates for co-operative societies remain unchanged under the Finance Bill, preserving existing tiered percentage bands.
    Income-tax rates for co-operative societies are specified in Paragraph B of Part I of the First Schedule to the Finance Bill and remain unchanged for the assessment year 2025-26, preserving a tiered rate structure that applies different percentage rates to successive income bands and maintaining continuity with the existing tax treatment for such entities.
    NewsBills
    Firms - Tax Rates For the assessment year 2025-26
    Show AI Summary
    Firm tax rate unchanged under Finance Bill, maintaining existing income-tax treatment for partnership entities provision.
    Firm taxation for assessment year 2025-26 is governed by the rate specified in Paragraph C of Part I of the First Schedule to the Finance Bill; the statutory rate for firms remains 30%, preserving the existing income-tax treatment of partnership firms as the operative rate for computing liabilities.
    NewsBills
    Local authorities - Tax Rates For the assessment year 2025-26
    Show AI Summary
    Local authority tax rate remains unchanged for the assessment year, specified in the Finance Bill's First Schedule.
    Paragraph D of Part I of the First Schedule to the Finance Bill prescribes the income-tax rate for a local authority and specifies that the rate remains unchanged at 30% for the assessment year 2025-26.
    NewsBills
    Companies - Tax Rates For the assessment year 2025-26
    Show AI Summary
    Corporate tax rate differential maintained between smaller domestic companies and others, with surcharge rules and health and education cess applied.
    Rates of income-tax for companies confirm lower rate for domestic companies below the turnover threshold and higher rates for other domestic and non-domestic companies; surcharge framework remains as prior year with exclusions for income of specified funds and capped surcharge treatment for incomes under the special domestic tax regime. Marginal relief is provided where surcharge is imposed. A Health and Education Cess is levied at a fixed percentage on income-tax inclusive of surcharge in all cases, with no marginal relief available for the cess.
    NewsBills
    Rates for deduction of income-tax at source during the financial year (FY) 2025-26 from certain inco...
    Show AI Summary
    Deduction of income-tax at source: insurance commission TDS rate reduced, other TDS rates and surcharges largely retained
    Deduction of income-tax at source for FY 2025-26 is set out in Part II of the First Schedule to the Finance Bill, 2025, with section-specific provisions continuing to govern TDS mechanics. The rate for taxation of insurance commission is reduced pursuant to amendments in the Finance (No. 2) Act, 2024 effective from 1 April 2025. Other TDS rates remain as specified in the prior Act, surcharge treatment is unchanged, and Health and Education Cess is levied at four per cent on income-tax including surcharge where applicable for non-residents and non-domestic companies.
    NewsBills
    Rates for deduction of income-tax at source from "Salaries", computation of "advance tax" and chargi...
    Show AI Summary
    Income-tax withholding on salaries now set by prescribed rates, also governing advance tax computation and special assessments.
    Rates for deduction of income-tax at source from Salaries and for computation of advance tax are prescribed in Part III of the First Schedule; those rates also apply for charging income-tax on current incomes where accelerated or special assessments are required, including provisional assessments, assessments of persons leaving the country, transfers to avoid tax, and short-duration bodies.
    NewsBills
    Individual, HUF, association of persons, body of individuals, artificial juridical person. - Rate of...
    Show AI Summary
    New individual tax regime introduces revised slab rates, capped surcharge rules and an option to retain the old regime.
    Proposed amendments create a revised new tax regime for individuals, HUFs, AOPs, BOIs and artificial juridical persons, prescribing progressive slab rates to determine income-tax from assessment year 2026-27, while allowing taxpayers to opt instead for rates in Part III of the First Schedule. The Part III schedule contains separate slab structures for general residents and for senior and super-senior residents. Computed tax (including specified capital gains) is subject to a multi-tiered surcharge with caps on surcharge for dividend and certain capital gains incomes, special limits for associations of companies, and marginal relief at thresholds.
    NewsBills
    Co-operative Societies - Rate of TDS during the FY 2025-26 (Assessment Year 2026-27).
    Show AI Summary
    Co-operative society tax rates and surcharge structure clarified for FY, with marginal relief and optional concessional tax regime available.
    Rates of income-tax for co-operative societies remain unchanged from the prior fiscal year. A tiered surcharge regime applies with marginal relief to smooth threshold effects. Resident co-operative societies that satisfy specified conditions may elect a concessional tax option under the Finance Bill, which attracts a reduced surcharge on the alternative tax.
    NewsBills
    Firms - Rate of TDS during the FY 2025-26 (Assessment Year 2026-27).
    Show AI Summary
    Firm income-tax rate unchanged; surcharge applies on incomes above the specified threshold, with a cap limiting surcharge impact.
    The rate of income-tax for firms remains unchanged from the prior year as set in Paragraph C of Part III of the First Schedule. A surcharge applies on a firm's income-tax where total income exceeds a specified threshold, but the total of income-tax and surcharge on income above the threshold is capped so it cannot exceed the tax on the threshold amount by more than the excess income.
    NewsBills
    Local authorities - Rate of TDS during the FY 2025-26 (Assessment Year 2026-27).
    Show AI Summary
    Surcharge on local authorities' income capped above the statutory threshold while base tax rates remain unchanged.
    The income-tax rate for local authorities set in Paragraph D of Part III of the First Schedule is unchanged for FY 2025-26; a surcharge applies where total income exceeds one crore rupees, but the aggregate tax and surcharge on income above that threshold is limited so it cannot exceed the tax on one crore rupees by more than the excess income amount.
    NewsBills
    Companies - Rate of TDS during the FY 2025-26 (Assessment Year 2026-27).
    Show AI Summary
    Corporate tax rate structure revised with differential domestic and foreign company rates, surcharge bands, marginal relief, and a health cess.
    Corporate tax rates for FY 2025-26 set differentiated base rates for domestic and non domestic companies, allow domestic companies to opt into a concessional section 115BAA regime, and apply tiered surcharge rates with marginal relief; an additional Health and Education Cess is levied on tax inclusive of surcharge and is not eligible for marginal relief.
    NewsBills
    Rebate under section 87A
    Show AI Summary
    Rebate under section 87A expanded for new tax regime, raising eligibility and capping deduction to tax payable.
    The proviso to section 87A grants a limited rebate and marginal relief to resident individuals whose income is chargeable under the new tax regime, excluding incomes taxed at special rates. From assessment year 2026-27 the Finance Bill proposes to increase the income limits and the maximum rebate under the proviso, and to add a proviso limit that the deduction cannot exceed the tax payable under the new tax-regime rates.
    NewsBills
    Incentives to International Financial Services Centre
    Show AI Summary
    Incentives to International Financial Services Centre: proposed tax and regulatory amendments to further promote IFSC operations in non rupee currencies
    IFSC is a jurisdiction providing financial services to non-residents and permitted residents in currencies other than the Indian Rupee; prior tax concessions have been granted to IFSC units to develop financial infrastructure, and the Union Budget 2025-26 proposes further amendments to provide additional incentives for operations from IFSC units, building on existing concessions to enhance its attractiveness for international financial services.
    NewsBills
    Extension of sunset dates for several tax concessions pertaining to IFSC
    Show AI Summary
    IFSC tax concession sunset extension extends commencement and relocation deadlines to March 2030, effective April 2025.
    The Finance Bill proposes extending sunset dates for tax concessions tied to IFSC units and relocation of funds to IFSC, moving the deadline for commencement and relocation-related benefits to 31 March 2030; these amendments take effect from 1 April 2025.
    NewsBills
    Exemption on life insurance policy from IFSC Insurance offices
    Show AI Summary
    Life insurance exemption extended to IFSC-issued policies without premium cap, improving parity for non-residents and clarifying scope.
    Exemption for amounts received under life insurance policies, including bonuses, will expressly apply to policies issued by IFSC insurance offices; the proposed amendment removes the existing premium-cap condition for IFSC-issued policies to provide parity for non-resident policyholders, while leaving other exemption conditions intact, effective 1 April 2025.
    NewsBills
    Exemption to capital gains and dividend for ship leasing units in IFSC
    Show AI Summary
    Exemption to capital gains and dividend expanded to ship leasing units in IFSC, aligning tax treatment with aircraft leasing.
    The measure extends existing IFSC exemptions applying to aircraft leasing so that non residents or IFSC units engaged in ship leasing are exempt from capital gains tax on transfers of equity shares of domestic companies that are IFSC ship leasing units, and dividends paid by an IFSC ship leasing company to another IFSC ship leasing unit are likewise exempt. The amendment aligns ship leasing with aircraft leasing treatment and specifies an effective commencement under the Finance Bill.
    NewsBills
    Rationalisation of definition of 'dividend' for treasury centres in IFSC
    Show AI Summary
    Dividend definition clarified for IFSC treasury centres-group entity loans to finance units excluded from dividend rules subject to conditions.
    The proposal narrows the scope of dividend for IFSC corporate treasury centres by excluding advances or loans between group entities where one is a Finance company or Finance unit in IFSC acting as a global or regional corporate treasury centre, provided the parent or principal entity is listed on an overseas stock exchange (with Board specified exceptions). Conditions defining group entity, principal entity and parent entity will be prescribed, and the amendment is to take effect from the stated effective date.
    NewsBills
    Simplified regime for fund managers based in IFSC
    Show AI Summary
    Business connection exemption for IFSC fund managers streamlined with timing relief and relaxed conditions for qualifying managers.
    Amendments to Section 9A rationalise the resident participation condition by testing aggregate participation on 1 April and 1 October of the previous year, with a four month period to cure deficiencies. Clause (c) will otherwise remain unmodified for all eligible funds and managers. Additionally, clauses (a)-(m) may be relaxed for eligible funds whose IFSC based eligible fund managers commenced operations on or before the specified commencement date under sub section (8A). The amendments take effect from 1 April 2025.
    NewsBills
    Amendment of Section 10 related to Exempt income of Non-Residents
    Show AI Summary
    Exemption for non-resident derivative income expanded to include FPIs in IFSC units, subject to prescribed conditions.
    The amendment broadens clause (4E) of section 10 to exempt from a non-resident's total income income from transfer of non-deliverable forward contracts, offshore derivative instruments, over-the-counter derivatives, and distribution of income on offshore derivative instruments when entered into with Foreign Portfolio Investors that are IFSC units, subject to prescribed conditions and applicable from the notified effective assessment year onward.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Home› TMI Notes › Income Tax › Act-Rules › Category › This
      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters
      Income Tax

      Comparison of SCHEDULE II "INCOME NOT TO BE INCLUDED IN TOTAL INCOME" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      17 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Print Options

      SCHEDULE II INCOME NOT TO BE INCLUDED IN TOTAL INCOME

      Income-tax Act, 2025

      At a Glance

      SCHEDULE II sets out classes of income that are excluded from "total income" for income-tax purposes. The Bill (Old Version) and the enacted Act differ in several material respects affecting life-insurance exclusions, pension/NPS entries, references to International Financial Services Centre (IFSC) entities, and the inclusion of equalisation-levy income. Affected parties include policyholders, insurers, employers, employees, pension subscribers, IFSC entities and tax authorities. Effective dates are stated within specific entries (for example, policy issue periods and 1 April 2002/2023) where provided; no single overarching commencement date for the Schedule is stated in the Bill text.

      Background & Scope

      Statutory hook: SCHEDULE II (See section 11) - "Income not to be included in total income." The Schedule lists categories of exempt income (column B) subject to conditions (column C). Definitions and notes at the end assign meanings to terms used in the table. The Bill (Old Version) is the source document for this commentary. Any differences vis-`a-vis the enacted Act are identified only insofar as both texts were provided; where a detail is absent in the Bill text, the phrase "Not stated in the document." has been used.

      Statutory Provision Mode

      Text & Scope

      The Schedule enumerates 16 heads of income excluded from total income, including: agricultural income; sums under life-insurance policies (with sub-conditions tied to period of issue, premium-to-sum-assured ratios and aggregate premium ceilings); provident fund and recognised provident fund payments (with carve-outs for interest on large contributions on/after 1 April 2021); payments under Sukanya Samriddhi, National Pension System (NPS) Trust, Agniveer Corpus Fund, approved superannuation funds; scholarships; awards/rewards instituted or approved by government; interest or other receipts on specified government securities and deposits; interest on gold bonds/certificates; interest on bonds issued by local authorities or State Pooled Finance Entities; income on transfer of certain UTI units; income chargeable to equalisation levy (new insertion); and specific categories u/s 10(15) and related provisions of the 1961 Act as applicable.

      Interpretation

      The text frames exclusions as conditional: each head is subject to prescribed conditions and definitions in accompanying notes. Legislative intent, as discernible from the Bill text, is to preserve traditional exemptions (agriculture, certain pensions, scholarships, specified government securities) while tightening or clarifying tax-exempt treatment for life-insurance receipts and retirement/savings vehicles by reference to issue dates, premium ratios, aggregate premium ceilings and contribution thresholds. The insertion of equalisation-levy related exclusion (Sl. No. 15) signals explicit recognition of overlap between equalisation-levy chargeability and income-tax neutrality for certain cross-border digital services.

      Exceptions/Provisos

      Key carve-outs and conditions provided in the Bill include:

      • Life-insurance sums excluded only if policies meet period-specific premium-to-sum-assured ratios and, for certain periods, aggregate premium ceilings (Rs. 2,50,000 or Rs. 5,00,000) - and certain sums (section 127 receipts; Keyman policies) are expressly ineligible.
      • Portions of interest on provident fund/recognised provident fund balances attributable to contributions on/after 1 April 2021 are not eligible for exclusion where contributions exceed specified thresholds (Rs.5,00,000 / Rs.2,50,000) and the amount not excluded is to be computed as prescribed.
      • NPS payments excluded only to the extent they do not exceed 60% of the total amount payable on closure/opt-out.
      • Approved superannuation fund payments are exempt only in specified circumstances (death, commutation at retirement/age, refund in limited cases, transfer to specified pension schemes).
      • Equalisation-levy related incomes are excluded only where not chargeable as royalty/FTS in India under agreements notified u/s 159 (explicit exception in Sl. No. 15).

      Illustrations

      • Example 1: A unit-linked life policy issued on 1 Oct 2023 with annual premium such that premium-to-sum-assured ratio is 12% and aggregate premium per tax year is Rs.2,00,000 - the Bill permits exclusion if it meets the Item 2 conditions (unit-linked post-1-April-2023: ratio <=15% for special, <=10% for others; aggregate <=Rs.2,50,000 for ULIP). Whether treated as "special policy" depends on disability/disease status u/rs - Not stated in the document.
      • Example 2: An employee receives accumulated recognised provident fund balance including interest attributable to contributions of Rs.6,00,000 made on/after 1 April 2021 in a year when no employer contribution was made - interest attributable to that contribution is not eligible for exclusion (threshold exceeded Rs.5,00,000); the portion not excluded to be computed as prescribed (procedure Not stated in the document).

      Interplay

      The Bill references other statutory instruments and provisions: Section 11 (hook), Section 127 (for life-insurance ineligibility), Schedule XI para 8, Schedule XV (definition of "actual capital sum assured"), Insurance Regulatory regulations, the Provident Funds Act, Government Savings Promotion Act (Sukanya Samriddhi), Dept. notifications regarding NPS (notifications not reproduced in the Bill text), Finance Act, 2016 (equalisation levy Chapter VIII) and section 159 agreements. The Bill contemplates Board guidelines for removal of difficulties. Where computation methods are required ("as prescribed"), the Bill defers to rules/regulations; these procedural details are Not stated in the document.

      Differences between the Bill (Old Version) and the Enacted Act - Practical Impact

      TopicBill (Old Version)Act (2025) - Differences & Practical Impact
      Reference to IFSC in life-insurance entryExclusion clause expressly excludes policies issued by "International Financial Services Centre insurance intermediary office" from the general test; IFSC office language appears within clause (a).

      The Act broadens IFSC coverage differently (references to "International Financial Services Centre Insurance Office") and later adds a special carve-out that aggregate premium conditions do not apply to policies issued on or after 1 April 2025 by the IFSC Insurance Office.

      Practical impact: IFSC-issued policies post-1-Apr-2025 enjoy relaxed aggregate-premium limits under the Act versus the Bill - this benefits IFSC policyholders and insurers.

      Section reference for ineligible insurance sumsIneligibility lists section 127 (no subsection reference) and Keyman policies.

      The Act specifies "section 127(4)" as ineligible; this narrows or clarifies which portion of section 127 is meant.

      Practical impact: narrower/clearer exclusion scope for section 127 receipts, reducing interpretive ambiguity.

      Aggregate premium thresholds for policies issued on/after 1-Apr-2023ULIPs: aggregate <=Rs.2,50,000; other policies: aggregate <=Rs.5,00,000.

      The Act restates these ceilings but then adds the IFSC carve-out for policies issued on/after 1-Apr-2025.

      Practical impact: domestic policyholders unchanged, IFSC policyholders gain advantage.

      NPS-related entries (Sl. Nos. 15 & 16)The Bill lacks specific entries for "lump sum amount" defined by a particular notification and for Unified Pension Scheme subscriber-specific references.

      The Act adds two discrete entries (Sl. Nos. 15 and 16) dealing with NPS payments to Unified Pension Scheme subscribers and "lump sum amount" per a departmental notification dated 24 Jan 2025.

      Practical impact: greater specificity and targeted exemption for Unified Pension Scheme subscribers under NPS, linking to a concrete notification (FX-1/3/2024-PR). This reduces uncertainty for affected NPS subscribers.

      Equalisation levy incomeBill includes Sl. No. 15 addressing income chargeable to equalisation levy.

      The Act omits the Bill's Sl. No. 15 equalisation-levy entry or shifts numbering; comparison shows the Act instead includes other NPS-related items.

      Practical impact: the treatment of equalisation-levy incomes requires reconciliation between Act text and prior Bill; taxpayers relying on the Bill's exclusion must verify the final Act wording (Not stated in the document).

      Practical Implications

      • Compliance and risk areas: Life-insurance exclusions carry detailed temporal and quantitative conditions (period of issue, premium-to-sum-assured ratio, aggregate premium ceilings). Insurers and policyholders must verify issue date classifications and compute premium ratios and aggregate premiums across the policy term. The explicit ineligibility for keyman policies and section 127 receipts increases scrutiny over policy ownership and assignment.
      • NPS and provident fund entries impose record-keeping obligations: authorities and subscribers must track contributions made on or after 1 April 2021 separately, and identify portions of interest attributable to contributions exceeding thresholds. The method of computing the amount not excluded is left to prescribed rules - until rules are notified, potential uncertainty persists.
      • Equalisation-levy clause (Sl. No. 15): taxpayers and digital service providers should reconcile equalisation-levy exposure and Income-tax chargeability; the clause excludes income chargeable to equalisation levy except where the income is otherwise taxable in India as royalty/FTS under notified agreements (thus creating an interplay with tax treaty determinations and notifications u/s 159).
      • IFSC references: the Bill treats certain IFSC insurance intermediary office receipts differently in the life-insurance entry (exclusion/inclusion language differs versus the Act). Parties operating within IFSCs should note the special treatment and any administrative guidance forthcoming.
      • Procedural uncertainty: multiple entries defer to "as prescribed" computations and to notifications by the Central Government; until those are issued, taxpayers face interpretation and compliance risk. The Board's power to issue binding guidelines (with Central Government approval) is preserved, indicating administrative rule-making will shape practical application.

      Key Takeaways

      • The Bill retains traditional exemptions (agriculture, scholarships, certain pension/retirement receipts) while imposing quantified tests on insurance exclusions (period-specific ratios and aggregate premium ceilings).
      • Interest on provident fund balances attributable to large post-1-April-2021 contributions is explicitly excluded from exemption, with thresholds (Rs.5,00,000 / Rs.2,50,000) and prescribed computation methods.
      • Equalisation-levy related income is newly addressed - excluded except where taxable in India as royalty/FTS under notified agreements.
      • Certain specific sums are expressly excluded from insurance exemption (section 127 receipts; Keyman insurance), tightening the prior broader language.
      • Several entries defer key operational questions to rules/notifications; substantial administrative guidance is required to operationalise the Schedule.

      Full Text:

      SCHEDULE II INCOME NOT TO BE INCLUDED IN TOTAL INCOME

      Topics

      ActsIncome Tax
      Next ➔