Schedule VII — Persons exempt from tax
Parent section: Section 11 Old Act equivalent: Section 10(23)/(23AAA)/(23AAB)/(23B)-(23DBA)/(26)/(26AAA)/(29A) and related provisions of IT Act 1961
Schedule VII lists persons whose entire income is exempt from tax, subject to conditions. Unlike Schedules II–VI which exempt specific incomes, Schedule VII exempts the entire entity. Contains 49 entries covering regimental funds, statutory authorities (Khadi Commission, SEBI, IRDA), PM’s Relief Fund, credit guarantee funds, sovereign wealth entities, and others.
Full Text
SCHEDULE VII [See section 11] PERSONS EXEMPT FROM TAX Any eligible person, mentioned in column B of the Table below, shall not be liable to pay income-tax on the total income for any tax year, subject to the conditions mentioned in column C of the said Table, and the expression used in columns B and C of the said Table, shall have the meanings respectively assigned to them in the Notes below the said Table: TABLE Sl. No. Eligible persons Conditions A B C 1. Any regimental Fund or Non-public Fund established by the armed forces of the Union. Such Fund is for the welfare of the past and present members of the armed forces or their dependants. 2. Any fund established for such purposes as may be notified by the Board for the welfare of employees or their dependants and such employees are members of such fund. (a) Such fund—
(i) applies its income or accu mulates it for application, wholly and exclusively to the objects for which it is established; and
(ii) invests its funds and contributions and other sums received by it in the forms or modes specified in section 350; (b) such fund is approved by the Principal Commissioner or Commissioner in such manner as may be prescribed; and such approval shall at any one time have effect for such tax year or years not exceeding three tax years as specified in the order of approval. 3. Any fund, by whatever name called, set up by the Life Insurance Corporation of India on or after the 1st August, 1996 or any other insurer under a pension scheme. (a) The contribution is made to such pension scheme by any person for the purpose of re ceiving pension from such fund; and (b) such scheme is approved by the Controller of Insurance or the Insurance Regulatory and Development Authority estab lished under section 3(1) of Sl. No. Eligible persons Conditions A B C
the Insurance Regulatory and
Development Authority Act, 1999 (41 of 1999). 4. An authority (whether known as the Khadi and Village Industries Board or by any other name). Such authority is established in a State by or under a State Act or Provincial Act for the development of khadi or village industries in the State. 5. Any body or authority (whether or not a body corporate or corporation sole) established, constituted or appointed by or under any Central Act or State Act or Provincial Act. (a) Such body or authority pro vides for the administration of any one or more of public religious or charitable trusts or endowments (including, temples, gurudwaras, wakfs, churches, synagogues, agiaries or a mutt or other places of pub lic religious worship) or socie ties for religious or charitable purposes, registered under the Societies Registration Act, 1860 (21 of 1860), or any other law; and (b) exclusion from total income as provided herein shall not be available to any trust, endow ment or society being adminis tered by such body or authority. 6. SAARC Fund for Regional Projects set up by Colombo Declaration issued on the 21st December, 1991 by the Heads of State or Government of the Member Countries of South Asian Association for Regional Cooperation established on the 8th December, 1985 by the Charter of the South Asian Association for Regional Cooperation. Nil 7. Insurance Regulatory and De velopment Authority established under section 3(1) of the Insur ance Regulatory and Development Authority Act, 1999 (41 of 1999). Nil Sl. No. Eligible persons Conditions A B C 8. Central Electricity Regulatory Com mission constituted under section 76(1) of the Electricity Act, 2003 (36 of 2003). Nil 9. Prasar Bharati (Broadcasting Corpo ration of India) established section 3(1) of the Prasar Bharati (Broad casting Corporation of India) Act, 1990 (25 of 1990). Nil 10. The Prime Minister’s National Relief Fund or the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND). Nil 11. The Prime Minister’s Fund (Promo tion of Folk Art). Nil 12. The Prime Minister’s Aid to Students Fund. Nil 13. The National Foundation for Communal Harmony. Nil 14. The Swachh Bharat Kosh, set up by the Central Government. Nil 15. The Clean Ganga Fund set up by the Central Government. Nil 16. The Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund in respect of any State or Union territory as referred to in section 133(1)(a)(xv). Nil 17. Any University or other educational institution wholly or substantially financed by the Government. (a) It exists solely for educational purposes and not for purposes of profit; and (b) if the Government grant to such University or other educational institution exceeds such per centage of the total receipts including any donations, as may be prescribed, of such University or other educational institution, it shall be consid ered as being substantially Sl. No. Eligible persons Conditions A B C
financed by the Government
during the relevant tax year. 18. Any hospital or other institution wholly or substantially financed by the Government. (a) It is for the reception and treatment of persons suffering from illness or mental defective ness, or for the reception and treatment of persons during convalescence or of persons requiring medical attention or rehabilitation; (b) it exists solely for philanthropic purposes and not for the pur poses of profit; and (c) if the Government grant to such hospital or other institution exceeds such percentage of the total receipts including any do nations, as may be prescribed, of such hospital or other insti tution, it shall be considered as being substantially financed by the Government during the relevant tax year. 19. (a) Any University or other educa tional institution; (b) any hospital or other institu tion. (a) Such University or other edu cational institution exists solely for educational purposes and not for the purposes of profit; (b) such hospital or other institu tion is for the reception and treatment of persons suffering from illness or mental defective ness, or for the reception and treatment of persons during convalescence or of persons requiring medical attention or rehabilitation; (c) such hospital or other insti tution exists solely for philan thropic purposes and not for the purposes of profit; and Sl. No. Eligible persons Conditions A B C (d) the aggregate of annual receipts of such University or Universi ties or educational institution or institutions, and hospital or hospitals or institution or institutions, does not exceed five crore rupees; (e) where such University or other educational institution or such hospital or other institution receives any anonymous do nation defined under section 355(a), the provisions of section 337 (Table: Sl. No. 1) in respect of specified income shall apply mutatis mutandis as they ap ply in the case of a registered non-profit organisation and such anonymous donations shall be excluded from the in come on which no tax is payable. 20. A Mutual Fund registered under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or regulations made thereunder. Nil. 21. Any Mutual Fund set up by a public sector bank or a public financial institution or authorised by the Reserve Bank of India. Such conditions as the Central Government may, by notification, specify. 22. A recognised provident fund. Nil. 23. An approved superannuation fund. Nil. 24. An approved gratuity fund. Nil. 25. Deposit-linked Insurance Fund established under section 3G of the Coal Mines Provident Funds and Miscellaneous Provisions Act, 1948 (46 of 1948). Nil. 26. Deposit-linked Insurance Fund established under section 6C of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952). Nil. Sl. No. Eligible persons Conditions A B C 27. Employees’ State Insurance Fund set up under the provisions of the Employees’ State Insurance Act, 1948 (34 of 1948). Nil. 28. An agricultural produce market committee or board constituted under any law. Such committee or board is consti tuted for the purpose of regulating the marketing of agricultural pro duce. 29. A corporation established by a Central Act or State Act or Provincial Act or of any other body, institution or association (being a body, institu tion or association wholly financed by the Government). Such corporation or other body or institution or association has been established or formed for promoting the interests of the members of the Scheduled Castes or the Scheduled Tribes or backward classes, or of any two, or all of them. 30. A corporation established by the Central Government or any State Government for promoting the interests of the members of a minority community. Nil. 31. Any corporation established by a Central Act or State Act or Provincial Act for the welfare and economic upliftment of ex-servicemen being the citizens of India. Nil. 32. Any co-operative society formed for promoting the interests of the members of either the Scheduled Castes or Scheduled Tribes, or both. Membership of such co-operative society shall consist of only other co-operative societies formed for similar purposes and the finances of the society are provided by the Government and such other societies. 33 Coffee Board constituted under section 4 of the Coffee Act, 1942 (7 of 1942). Nil. 34. Rubber Board constituted under section 4(1) of the Rubber Board Act, 1947 (24 of 1947). Nil. 35. Tea Board established under section 4 of the Tea Act, 1953 (29 of 1953). Nil. 36. Tobacco Board constituted under the Tobacco Board Act, 1975 (4 of 1975). Nil. Sl. No. Eligible persons Conditions A B C 37. Marine Products Export Development Authority established under section 4 of the Marine Products Export Development Authority Act, 1972 (13 of 1972). Nil. 38. Agricultural and Processed Food Products Export Development Authority established under section 4 of the Agricultural and Processed Food Products Export Development Act, 1985 (2 of 1986). Nil. 39. Spices Board constituted under section 3(1) of the Spices Board Act, 1986 (10 of 1986). Nil. 40. Coir Board established under section 4 of the Coir Industry Act, 1953 (45 of 1953). Nil. 41. New Pension System Trust estab lished on the 27th February, 2008 under the provisions of the Indian Trusts Act, 1882 (2 of 1882). Nil. 42. Any body or authority or Board or Trust or Commission, not being a company, which has been established or constituted by or under a Central Act or State Act with one or more of the following purposes,— (a) dealing with and satisfying the need for housing accommoda tion; (b) planning, development or im provement of cities, towns and villages; (c) regulating, or regulating and developing, any activity for the benefit of the general public; or (d) regulating any matter, for the benefit of the general public, arising out of the object for which it has been created. Such body or authority or Board or Trust or Commission is notified by the Central Government. Sl. No. Eligible persons Conditions A B C 43. National Credit Guarantee Trustee Company Limited, being a company established and wholly financed by the Central Government for the purposes of operating credit guarantee funds established and wholly financed by the Central Government. Nil. 44. A credit guarantee fund established and wholly financed by the Central Government and managed by the National Credit Guarantee Trustee Company Limited. Nil. 45. Credit Guarantee Fund Trust for Micro and Small Enterprises, being a trust created by the Central Gov ernment and the Small Industries Development Bank of India estab lished under section 3(1) of the Small Industries Development Bank of India Act, 1989 (39 of 1989). Nil. 46. An infrastructure debt fund. Such fund is set up as per the guidelines issued by the Central Government, by notification. 47. An institution established for financing the infrastructure and development set up under an Act of Parliament. Such exclusion from total income is for ten consecutive tax years, beginning from the tax year in which such institution is set up and such institution is notified by the Central Government. 48. A developmental financing institu tion, licensed by the Reserve Bank of India under an Act of Parliament referred to against serial number 47. (a) Such institution is notified by the Central Government; (b) exclusion of such income from the total income is for five con secutive tax years beginning from the tax year in which the developmental financing insti tution is set up; and (c) the Central Government may, by notification extend the pe riod of exclusion for a further period, not exceeding five more Sl. No. Eligible persons Conditions A B C
consecutive tax years, subject
to fulfilment of such conditions as specified in the said notifi cation. [49. New Development Bank. Such exemption shall be subject to furnishing of information in such form and manner, as may be prescribed.] Note 1.—For the purposes of Sl. No. 3, the expression “Controller of Insurance” shall have the same meaning as assigned to it in section 2(5B) of the Insurance Act, 1938 (4 of 1938). Note 2.—For the purposes of Sl. No. 4, the expression “khadi” and “village industries” shall have the meanings respectively assigned to them in the Khadi and Village Industries Com mission Act, 1956 (61 of 1956). Note 3.—For the purposes of Sl. No. 21, the expression “public financial institution” shall have the same meaning as assigned to it in section 2(72) of the Companies Act, 2013 (18 of 2013). Note 4.—For the purposes of Sl. No. 29,––
(a) “Scheduled Castes” and “Scheduled Tribes” shall have the meanings respectively assigned to them in article 366(24) or (25) of the Constitution;
(b) “backward classes” means such classes of citizens, other than the Scheduled Castes and the Scheduled Tribes, as may be notified by the Central Government or any State Government. Note 5.—For the purposes of Sl. No. 30, the expression “minority community” means a com munity notified as such by the Central Government. Note 6.—For the purposes of Sl. No. 31, the expression “ex-servicemen” means persons—
(i) who have served in any rank, whether as combatant or non-combatant;
(ii) in the armed forces of the Union or armed forces of the Indian States before the commencement of the Constitution (but excluding the Assam Rifles, Defence Security Corps, General Reserve Engineering Force, Lok Sahayak Sena, Jammu and Kashmir Militia and Territorial Army);
(iii) for a continuous period of not less than six months after attestation;
(iv) who have been released, otherwise than by way of dismissal or discharge on account of misconduct or inefficiency; and
(v) includes their wife, children, father, mother, minor brother, widowed daughter and widowed sister, wholly dependent upon such ex- servicemen, immediately before their death or incapacitation, in case of deceased or incapacitated ex-servicemen.
Provisos
None.
Explanations
None.
Key Structure
- Applies to: Specified entities/persons — entire income exempt (not just specific income heads).
- Conditions: Each entity has specific conditions in Column C of the Table.
- Time limits: Tax year; some entries time-bound.
- Monetary limits: None generally — entire income exempt if conditions met.
- Exceptions: If conditions not met, entire income becomes taxable under Section 11(4).
Cross-References
Amendment Notes
None noted from the extracted pages.