Schedule VII — PERSONS EXEMPT FROM TAX

[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.
43[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.