Tax Ready Reckoner

Purpose: This section provides a full tax exemption on pension received by government employees (or their families) who have been awarded gallantry awards by the Central/State Government. Key Conditions for Exemption: ✅ Applicable to: Gallantry award winners(e.g., Param Vir Chakra, Maha Vir Chakra, Vir Chakra, etc.) Family pensionreceived by their dependents (if the awardee is deceased) ✅ No monetary limit – Entire […]

Purpose: This section provides a tax exemption on family pension received by the widow or children of a deceased member of the armed forces (Army, Navy, Air Force, or Paramilitary Forces). Key Conditions for Exemption: ✅ Applicable to: Family pensionreceived by the widow, children, or dependent heirs of a deceased armed forces member. Only for armed forces personnel(not civilians or non-military government

Purpose: This section provides a full tax exemption on the income of local authorities, such as municipalities, panchayats, and other governing bodies, to support public welfare and governance. Key Conditions for Exemption: ✅ Applicable to: Municipal Corporations(e.g., BMC, NDMC) Municipalities Panchayats(Village Councils) Port Trusts Other legally recognized local governing bodies ✅ Exemption Covers: Property taxes, water charges, fees, and other

Purpose: This section provides a full tax exemption on income earned by scientific research associations that are approved by the government. The goal is to promote scientific research in India. Key Conditions for Exemption: ✅ Must be an approved scientific research association (recognized by the Department of Science & Technology (DST) or Prescribed Authority). ✅ Income must be applied solely for research purposes (not for personal profit). ✅ Exemption

Purpose: This section provides a full tax exemption on income earned by approved news agencies that operate for the collection and distribution of news, provided they meet certain conditions. Key Conditions for Exemption: ✅ Must be an Indian news agency (not foreign). ✅ Must be approved by the Central Government (Ministry of Information & Broadcasting). ✅ Income must be solely from news collection/distribution (not from advertisements

Purpose: This section provides tax exemption to professional associations (like medical councils, bar councils, etc.) that promote art, science, or education, provided they meet certain conditions. Key Conditions for Exemption: ✅ Must be an association/institution (not a business). ✅ Must be approved by the Central Government (e.g., Indian Medical Association, Bar Council of India). ✅ Income must be used solely for promoting its objectives (not for

Section 10(23AA) of the Income Tax Act provides an exemption for income received by any person on behalf of a regimental fund or non-public fund established by the armed forces of the Union for the welfare of past or present members of such forces. Example: Let’s say the “Bravehearts Welfare Trust” is a non-public fund

Section 10(23AAA) of the Income Tax Act provides an exemption for income received by any person on behalf of a fund that is: Established for the welfare of employees or their dependents, and Notified by the Central Board of Direct Taxes (CBDT) in the Official Gazette. To qualify for exemption, the fund must: Apply its

Section 10(23AAB) of the Income Tax Act provides an exemption for income of a pension fund set up by: Life Insurance Corporation of India (LIC) or Any other insurer, provided the fund is: Established on or after 1st August 1996, Set up under a pension scheme, Receives contributions from individuals for the purpose of receiving

Section 10(23B) of the Income Tax Act provides a tax exemption for income earned by certain institutions that are: Constituted as a public charitable trust or registered under the Societies Registration Act, 1860, or any equivalent law, Existing solely for the development of khadi or village industries, and Not established for profit-making purposes. To qualify