Chapter: III — Incomes Which Do Not Form Part of Total Income Sections: 11–12 Schedules: II, III, IV, V, VI, VII, VIII Old Act equivalent: Sections 10, 13A, 13B of IT Act 1961 Status: ✅ Fully ingested (9 files)
Architecture
Section 11 is the umbrella provision — it contains no exemption list itself. Instead, it delegates entirely to Schedules II through VII:
| Schedule | Who It Covers | Content |
|---|---|---|
| Schedule II | All persons | Agricultural income, life insurance, PF, gratuity, pension commutation, leave encashment, VRS, scholarships, HRA |
| Schedule III | Eligible persons (trusts, institutions) | Charitable/religious trusts, educational institutions, hospitals, s.12AB entities (~41 entries) |
| Schedule IV | Non-residents, foreign companies | Diplomatic immunity, NRI allowances, sovereign wealth funds, pension funds (~17 entries) |
| Schedule V | Investment funds, business trusts | Mutual funds, REITs/InvITs, AIFs, VCFs, securitisation trusts (~9 entries) |
| Schedule VI | IFSC persons | GIFT City entities, aircraft/ship leasing, offshore banking, fund management (~14 entries) |
| Schedule VII | Persons exempt entirely | Regimental funds, SEBI, IRDA, PM’s Relief Fund, NDB — 49 entities |
Section 12 delegates to Schedule VIII for political parties and electoral trusts.
Sections
| Section | Heading | Page |
|---|---|---|
| 11 | Incomes not included in total income | s011-incomes-not-included |
| 12 | Political parties and electoral trusts | s012-political-parties-electoral-trusts |
Schedules
| Schedule | Heading | Page |
|---|---|---|
| II | Income not included — all persons | schedule-II-exempt-income |
| III | Income not included — eligible persons | schedule-III-eligible-persons |
| IV | Income not included — non-residents, foreign cos | schedule-IV-non-residents |
| V | Income not included — investment funds, business trusts | schedule-V-investment-funds |
| VI | Income not included — IFSC persons | schedule-VI-ifsc |
| VII | Persons exempt from tax | schedule-VII-persons-exempt |
| VIII | Political parties and electoral trusts | schedule-VIII-political-parties |
Key Doctrinal Points
- Conditions are mandatory — if conditions in the Schedule are not satisfied, income becomes taxable for that year (s.11(2), s.11(4), s.12(2)).
- Schedule VII exempts the entity, not just specific income — entire total income is exempt if conditions met.
- Central Government powers — s.11(5) and s.12(3) allow rules and notifications for these Schedules.
- Old Section 10 mapping — the old monolithic Section 10 has been distributed across Schedules II–VII. See _old-new-mapping for detailed clause-level mapping.
Related Topics
- Definitions — “agricultural income”, “charitable purpose”, etc.
- General provisions on deductions — interaction with Chapter VIII
- Section 190 — determination of tax where exempt income included
- Section 439 — penalties for under-reporting