Exempted Incomes

Section 10(23EE) of the Income Tax Act provides a tax exemption for specified income of a Core Settlement Guarantee Fund (CSGF) set up by a recognised clearing corporation, as notified by the Central Government. What’s Exempt: The following types of income are exempt if credited to the CSGF: Contributions received from specified persons (like clearing […]

Section 10(23F) of the Income Tax Act provided a tax exemption for dividends and long-term capital gains earned by a venture capital fund (VCF) or venture capital company (VCC) from investments in equity shares of a venture capital undertaking. However, this exemption applied only to investments made before 31st March 1999 and is now largely

Section 10(23FB) of the Income Tax Act provides a tax exemption for income earned by a Venture Capital Company (VCC) or Venture Capital Fund (VCF) from investments in a Venture Capital Undertaking (VCU). Who Qualifies: VCC: A company registered under SEBI’s Venture Capital Fund Regulations or as a sub-category of Category I AIF under SEBI’s

Section 10(23FBA) of the Income Tax Act provides a targeted tax exemption for investment funds—but with a key limitation: it exempts only income other than that chargeable under the head “Profits and Gains of Business or Profession.” Who Qualifies: Investment funds registered as Category I or Category II Alternative Investment Funds (AIFs) under SEBI’s AIF

Section 10(23FBB) of the Income Tax Act deals with taxation of business income earned by unit holders of an investment fund—specifically, Category I or II Alternative Investment Funds (AIFs) registered with SEBI. What It Covers: It applies to that portion of income accruing or arising to, or received by, a unit holder which is of

Section 10(23FBC) of the Income Tax Act provides a tax exemption for income earned by a unit holder from a specified fund, or on transfer of units in such a fund. Key Features: Who’s Covered: Unit holders (investors) in a specified fund. What’s Exempt: Any income accruing, arising to, or received by the unit holder

Section 10(23FC) of the Income Tax Act provides a tax exemption for specific types of income earned by a Business Trust, such as an Infrastructure Investment Trust (InvIT) or Real Estate Investment Trust (REIT). What’s Exempt: The following income is exempt in the hands of the business trust: Interest income received from a Special Purpose

Section 10(23FCA) of the Income Tax Act provides a tax exemption for rental income earned by a Real Estate Investment Trust (REIT) from directly owned real estate assets. Key Features: Eligible Entity: Only REITs (not InvITs or other business trusts). Nature of Income: Income from renting, leasing, or letting out real estate assets. Ownership Condition:

Section 10(23FE) of the Income Tax Act provides a tax exemption for certain types of income earned by a specified person—such as a Sovereign Wealth Fund (SWF), Pension Fund, or a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA)—from investments made in India’s infrastructure sector. What’s Exempt: Dividend income, Interest income, and Long-term

Section 10(23FF) of the Income Tax Act provides a targeted capital gains exemption for non-residents and specified funds in the context of relocation of offshore funds to India. What’s Exempt: Capital gains arising or received by: A non-resident, or A specified fund (typically a Category III AIF in an IFSC), from the transfer of shares