The Income Tax Act 2025

(1) The eligible investment fund referred to in section 9(12), means a fund established or incorporated or registered outside India, which collects funds from its members for investing it for their benefit and fulfils the following conditions:-- (a) the fund is not a person resident in India; (b) the fund is-- (i) a resident of a country or a specified territory with which an agreement referred to in section 159(1) or (2) has been entered into; or (ii) established or incorporated or registered in a country or a specified territory as notified in this behalf; (c) the aggregate participation or investment in the fund, directly, by persons resident in India does not exceed 5% of the corpus of the fund as on the 1st April and the 1st October of the tax year, subject to the conditions that— (i) for the purposes of calculation of such aggregate participation or investment in the fund, any contribution made by the eligible fund manager during the first three years of operation of the fund, not exceeding twenty-five crore rupees, shall not be taken into account; (ii) where the aforesaid aggregate participation or investment in the fund exceeds 5% on the 1st April or the 1st October of the tax year, the condition mentioned in this clause shall be deemed to be satisfied, if it is satisfied within four months of the 1st April or the 1st October of such tax year; (d) the fund and its activities are subject to applicable investor protection regulations in the country or specified territory where such fund is established or incorporated or is a resident; (e) the fund has a minimum of twenty-five members who are, directly or indirectly, not connected persons; (f) any member of the fund along with connected persons shall not have any participation interest, directly or indirectly, in the fund exceeding 10%; (g) the aggregate participation interest, directly or indirectly, of ten or less members along with their connected persons in the fund, shall be less than 50%; (h) the fund shall not invest more than 25% of its corpus in any entity; (i) the fund shall not make any investment in its associate entity; (j) the monthly average of the corpus of the fund shall not be less than one hundred crore rupees subject to the following:-- (i) if the fund has been established or incorporated in the tax year, then corpus of fund shall not be less than one hundred crore rupees at the end of twelve months from the last day of the month of its establishment or incorporation; and (ii) this clause shall not apply to a fund which has been wound up in the tax year; (k) the fund shall not carry on or control and manage, directly or indirectly, any business in India; (l) the fund is neither engaged in any activity which constitutes a business connection in India nor has any person acting on its behalf whose activities constitute a business connection in India other than the activities undertaken by the eligible fund manager on its behalf; (m) the remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf is not less than the amount calculated in such manner, as may be prescribed. (2) The conditions specified in paragraph (1)(e), (f) and (g) shall not apply, in case of— (a) an investment fund set up by the Government or the Central Bank of a foreign State or a sovereign fund; or (b) such other fund as the Central Government may, by notification, specify in this behalf, subject to conditions, if any. (3) The eligible fund manager, referred to in section 9(12), in respect of an eligible investment fund, means any person who is engaged in the activity of fund management and fulfils the following conditions:-- (a) the person is not an employee of the eligible investment fund or a connected person of the fund; (b) the person is registered as a fund manager or an investment advisor in accordance with the regulations as specified; (c) the person is acting in the ordinary course of his business as a fund manager; (d) the person along with his connected persons shall not be entitled, directly or indirectly, to more than 20% of the profits accruing or arising to the eligible investment fund from the transactions carried out by the fund through the fund manager. (4) Every eligible investment fund shall, in respect of its activities in a tax year, furnish within ninety days from the end of the tax year, a statement in the prescribed form to the prescribed income-tax authority containing information relating to the fulfilment of the conditions specified in this Schedule, and also provide such other relevant information or documents, as may be prescribed. (5) The provisions of this Schedule shall apply as per such guidelines and in such manner as the Board may prescribe in this behalf. (6) The Central Government may, by notification, specify that any one or more of the conditions specified in sub-paragraph (1) or (3) shall not apply or shall apply with such modifications, as specified in case of an eligible investment fund and its eligible fund manager, if-- (i) the eligible fund manager is located in an International Financial Services Centre; and (ii) has commenced its operations on or before the 31st March, 2030. 2. In this Schedule,— (a) "associate" means an entity in which a director or a trustee or a partner or a member or a fund manager of the investment fund, or a director or a trustee or a partner or a member of the fund manager of such fund, holds, either individually or collectively, share or interest, being more than 15% of its share capital or interest, as the case may be; (b) "connected person" shall have the meaning assigned to it in section 184(5); (c) "corpus" means the total amount of funds raised for the purpose of investment by the eligible investment fund as on a particular date; (d) "entity" means any entity in which an eligible investment fund makes an investment; and (e) "specified regulations" means the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020 or the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, or such other regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), which may be notified in this regard.

INCOME NOT TO BE INCLUDED IN TOTAL INCOME In computing the total income of a person for a tax year, the income mentioned in column B of the Table below shall not be included, subject to fulfilment of the conditions mentioned in column C of the said Table, and the expressions used in columns B and C of the said Table, shall have the meaning respectively assigned to them in the Notes below the said Table. Table Sl. No. Income not to be included in total income Conditions A B C 1. Agricultural income. Nil. 2. Any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy. (a) The insurance policies, issued during the period mentioned in column B of the table below, except where such sum is received on the death of a person, under a life Insurance policy issued by, shall fulfil the conditions mentioned in column C thereof: Sl. No. Period of issue of insurance policy Conditions A B C 1. 1st April, 2003 to 31st March, 2012. Premium to sum assured ratio is ≤ 20%. 2. 1st April, 2012 to 31st March, 2013. Premium to sum assured ratio is ≤ 10%. 3. 1st April, 2013 to 31st January, 2021. Premium to sum assured ratio is ≤ 15% for special policy; and ≤ 10% for other policies. 4. 1st February, 2021 to 31st March, 2023. Unit linked insurance policy:— (A) premium to sum assured ratio is ≤ 15% for special policy; and ≤ 10% for other policies; and (B) aggregate of premium for all such policies (in any of the tax years during the term of all of such policies) is ≤ ₹ 2,50,000. Other than unit linked insurance policy:— Premium to sum assured ratio is ≤ 15% for special policy; and ≤ 10% for other policies. 5. On or after the 1st April, 2023. Unit linked insurance policy:— (a) premium to sum assured ratio is ≤ 15% for special policy; and ≤ 10% for other policies; and (b) aggregate of premium for all such policies (in any of the tax years during the term of all of such policies) ≤ ₹ 2,50,000. Other than Unit linked insurance policy:— (i) premium to sum assured ratio is ≤ 15% for special policy; and ≤ 10% for other policies; and (ii) aggregate of premium for all such policies (in any of the tax years during the term of all of such policies) is ≤ ₹ 5,00,000; (b) the conditions of aggregate premium of ₹ 2,50,000 and ₹ 5,00,000 mentioned in clause (a) shall not apply to any sum received under a life Insurance policy issued on or after the 1st April, 2025, by the International Financial Services Centre Insurance Office; (c) the following sums shall not be eligible for exclusion from total income:— (i) any sum received under section 127(4); and (ii) any sum received under a Keyman insurance policy. Note.—For removal of difficulties, the Board may issue guidelines with the previous approval of the Central Government, which shall be binding on the income-tax authorities and the assessee and every guideline issued by the Board under this clause shall be laid before each House of Parliament. 3. Any payment from a provident fund to which the Provident Funds Act, 1925 (19 of 1925) applies, or from any other provident fund set up by the Central Government and notified by it in this behalf. (a) The income by way of interest accrued during the tax year shall not be eligible for exclusion from total income where,— (i) it is attributable to the contribution (including aggregate thereof) made by that person on or after the 1st April, 2021; (ii) such contribution exceeds— (A) ₹ 5,00,000 in a tax year in such fund where no contribution is made by the employer of such person; (B) ₹ 2,50,000 in other cases; and (b) the amount of income not to be excluded from total income as referred to in clause (a) shall be computed in such manner, as may be prescribed. 4. The accumulated balance due and becoming payable to an employee participating in a recognised provident fund to the extent provided in paragraph 8 of Part A of the Schedule XI. (a) The income by way of interest accrued during the tax year shall not be eligible for exclusion from total income where,— (i) it is attributable to contribution (including aggregate thereof) made by that person on or after the 1st April, 2021; and (ii) such contribution exceeds— (A) ₹ 5,00,000 in a financial year in such fund where no contribution is made by the employer of such person; or (B) ₹ 2,50,000 in other cases; and (b) the amount of income not to be excluded from total income as referred to in clause (a) shall be computed in such manner as may be prescribed. 5. Any payment from any account opened as per the Sukanya Samriddhi Account Scheme, 2019 made under the Government Savings Promotion Act, 1873 (5 of 1873). Nil. 6. Any payment from the National Pension System Trust. (a) Such payment is on closure of account of the assessee or on his opting out of the pension scheme referred to in section 124; and (b) the said payment does not exceed 60% of the total amount payable at the time of such closure or his opting out of the scheme. 7. Any payment from the Agniveer Corpus Fund to a person enrolled under the Agnipath Scheme or to his nominee. Nil. 8. Any payment from an approved superannuation fund. Such payment is made— (a) on the death of a beneficiary; (b) to an employee in lieu of or in commutation of an annuity on his retirement at or after a specified age or on his becoming incapacitated prior to such retirement; (c) by way of refund of contributions on the death of a beneficiary; (d) by way of refund of contributions to an employee on his leaving the service in connection with which the fund is established otherwise than by retirement at or after a specified age or on his becoming incapacitated prior to such retirement, to the extent to which such payment does not exceed the contributions made prior to the commencement of this Act and any interest thereon; or (e) by way of transfer to the account of the employee under a pension scheme referred to in section 124 and notified by the Central Government in this behalf. 9. Scholarships. Such scholarship is granted to meet the cost of education. 10. Any payment made, whether in cash or in kind for any award or reward. Such payment is made— (a) in pursuance of any award instituted in the public interest by the Central Government or any State Government or instituted by any other body and approved by the Central Government in this behalf; or (b) as a reward by the Central Government or any State Government for such purposes as may be approved by the Central Government in this behalf in public interest. 11. Income by way of interest, premium on redemption or other payment on such securities, bonds, annuity certificates, savings certificates, other certificates issued by the Central Government and deposits. Such certificates and deposits are notified by the Central Government, subject to such conditions and limits as specified therein. 12. Interest on Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 or deposit certificates issued under the Gold Monetisation Scheme, 2015 notified by the Central Government. Nil. 13. Interest on bonds issued by a local authority or by a State Pooled Finance Entity. As specified by the Central Government, by notification. 14. Any income arising from the transfer of a capital asset, being a unit of the Unit Scheme, 1964 referred to in Schedule I to the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002). The transfer of such asset takes place on or after the 1st April, 2002. 15. Any payment from the National Pension System Trust received by an assessee, who is a subscriber to the Unified Pension Scheme; (a) such payment received at the time of his superannuation or voluntary retirement or retirement under rule 56(j) of the Fundamental Rules [which is not treated as penalty under the Central Civil Services (Classification, Control and Appeal) Rules, 1965]; and (b) the said payment does not exceed 60% of the Individual corpus, as defined in notification number FX-1/3/2024-PR of the Department of Financial Services, dated the 24th January, 2025; 16. Any sum received as “lump sum amount” from the National Pension System Trust by an assessee being a subscriber to the Unified Pension Scheme. The said “lump sum amount” is as per clause (vi) of Para 2, of the Notification number FX-1/3/2024-PR of the Department of Financial Services, dated the 24th January, 2025. 17. Any income covered under section 10(15)(iii) or (15)(iv)(c), (15)(iv)(d), (15)(iv)(e), (15)(iv)(f), (15)(iv)(g) or (15)(iv)(h) or (36) of the Income-tax Act, 1961 (43 of 1961), subject to the conditions as provided therein. Nil. Note 1: For the purposes of Sl. No. 2,— (a) “actual capital sum assured” shall have the meaning assigned to it in paragraph 2(2) of Schedule XV; (b) “International Financial Services Centre Insurance Office” shall have the same meaning as assigned to it regulation 3(1)(k) of the International Financial Services Centre Authority (Registration of Insurance Business) Regulations, 2021, made under the International Financial Services Centres Authority Act, 2019 (50 of 2019); (c) “Keyman insurance policy” means a life insurance policy— (i) taken by a person on the life of another person; (ii) such person is or was the employee of the first-mentioned person or is or was connected in any manner with the business of the first-mentioned person; and (iii) includes such policy which has been assigned to a person at any time during the term of the policy, with or without any consideration; (d) “premium to sum assured ratio” shall mean the highest percentage of annual premium payable to the actual capital sum assured, during the term of the policy; (e) “special policy” means any policy issued on life of any person, who is— (i) a person with disability or a person with severe disability as referred to in section 154; or (ii) suffering from disease or ailment as specified in the rules made under section 128; (f) “United Linked Insurance Policy” means a unit linked life insurance policy,— (i) which has components of both investment and insurance; and (ii) is linked to a unit as defined in regulation 3(ee) of the Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019 made under the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999); Note 2: For the purposes of Sl. No. 7, the expression “Agniveer Corpus Fund” and “Agnipath Scheme” shall have the meanings respectively assigned to them in section 125. Note 3: For the purposes of Sl. No. 11, the expression “interest” includes hedging transaction charges on account of currency fluctuation. Note 4: For the purposes of Sl. No. 13, the expression “State Pooled Finance Entity” means such entity which is set up as per the guidelines for the Pooled Finance Development Scheme notified by the Central Government in the Ministry of Housing and Urban Affairs.

In computing the total income of a tax year of any eligible person mentioned in column C of the Table below, the income mentioned in column B of the said Table shall not be included, subject to the conditions mentioned in column D of the said Table, and the expressions used in columns B to D therein shall have the meanings respectively assigned to them in the Notes below the said Table: TABLE Sl. No. Income not to be included in total income Eligible persons Conditions A B C D 1. Any sum received by a member from Hindu undivided family. An individual who is a member of a Hindu undivided family. (a) Such sum is not covered under the provisions of section 99(3) and (4); and (b) such sum has been paid out of— (i) the income of the family; or (ii) the income of the estate belonging to the family, in the case of any impartible estate. 2. Any sum received by a partner towards his share in the total income of the firm. A person who is a partner of a firm separately assessed as such. The sum received as share in profit is as per the profit-sharing ratio provided in the partnership deed. 3. Any amount received or receivable from the Central Government or a State Government or a local authority by way of compensation on account of any disaster. Any individual or his legal heir. No deduction of this amount was allowed earlier under this Act on account of any loss or damage caused by such disaster to such individual or his legal heir. 4. Any payment from the National Pension System Trust under the pension scheme referred to in section 124. (i) Any employee; or (a) Such payment is on partial withdrawal made out of his ac-count or the account of the minor, as the case may be, as per the terms and conditions specified under the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013) and the regulations made thereunder; and (ii) an assessee, being the guardian or parent of a minor. (b) exclusion shall not exceed 25% of the amount of contributions made by him. 5. Daily allowance received. Any person by reason of his membership of Parliament or of any State Legislature or of any Committee thereof. Nil. 6. Any allowance received. Any person by reason of his membership of Parliament under the Members of Parliament (Constituency Allowance) Rules, 1986 made under the Salary, Allowances and Pension of Members of Parliament Act, 1954 (30 of 1954). Nil. 7. Any constituency allowance received. Any person by reason of his membership of any State Legislature under any State Act or rules made thereunder. Nil. 8. The value of any travel concession or assistance. Any individual. (a) Such sum is received by, or due to, such individual— (i) from his employer for himself and his family, in connection with his proceeding on leave to any place in India; (ii) from his employer or former employer for himself and his family, in connection with his proceeding to any place in India after retirement from service or after the termination of his service; (b) such sum is subject to such conditions as may be prescribed (including conditions as to number of journeys and the amount which shall be exempt per head); (c) the conditions in clause (b) shall have regard to the travel concession or assistance granted to the employees of the Central Government; and (d) the sum not included in the total income shall in no case exceed the amount of expenses actually incurred for the purpose of such travel. 9. Any allowances or perquisites paid or allowed as such outside India by the Government. A citizen of India. Such sum is paid or allowed for rendering service outside India. 10. Income in the nature of a perquisite. An employee, being an individual. (a) Such perquisite is not provided for by way of monetary payment, within the meaning of section 17(1); and (b) the tax on such income actually paid by his employer, at the option of the employer, on behalf of such employee. 11. Any special allowance from employer. Any assessee. (a) Such allowance is specifically granted to meet expenditure actually incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee; (b) such allowance is to such extent as may be prescribed having regard to the area or place in which such accommodation is situated and other relevant considerations; (c) the residential accommodation occupied by the assessee is not owned by him; and (d) the assessee has actually incurred expenditure on payment of rent (by whatever name called) in respect of the residential accommodation occupied by him. 12. Any special allowance or benefit to the extent to which such expenses are actually incurred for that purpose. Any assessee. (a) Such allowance or benefit is not in the nature of a perquisite within the meaning of section 17(1); and (b) such allowance or benefit is specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit, as may be prescribed. 13. Any allowance. Any assessee. (a) Such allowance is granted to the assessee,— (i) to meet his personal expenses at the place where the duties of his office or place of employment of profit are ordinarily performed by him or at the place where he ordinarily resides; or (ii) to compensate him for the increased cost of living, to the extent as may be prescribed; and (b) any allowance to remunerate or compensate for performing duties of a special nature relating to office or employment shall not be excluded from total income unless such allowance is related to the place of his posting or residence. 14. Pension received. An individual who has been in the service of the Central Government or State Government and has been awarded "ParamVir Chakra" or "Maha Vir Chakra" or "Vir Chakra" or such other gallantry award as the Central Government may, by notification, specify in this behalf. Nil. 15. Family pension received. Any member of the family of an individual referred against serial number 14. Nil. 16. Family pension received. Widow or children or nominated heirs of a member of the armed forces (including paramilitary forces) of the Union. The death of such member has occurred in the course of operational duties in such circumstances and subject to such conditions, as may be prescribed. 17. Any income includible in the total income under section 99(1)(c). In case of an individual referred to in that sub-section. Exclusion of such income from the total income is to the extent such income does not exceed ₹ 1,500 in respect of each minor child whose income is so includible. 18. Any income chargeable under the head "Capital gains" arising from the transfer of agricultural land. An individual or a Hindu undivided family. (a) Such land is situated in any area referred to in section 2(22)(iii); (b) such land, during the period of two years immediately preceding the date of transfer, was being used for agricultural purposes by such Hindu undivided family or individual or a parent of his; (c) such transfer is by way of compulsory acquisition under any law, or a transfer, the consideration for which is determined or approved by the Central Government or the Reserve Bank of India; and (d) such income has arisen from the compensation or consideration for such transfer received by such assessee on or after the 1st April, 2004. 19. Any income which accrues or arises— A member of a Scheduled Tribe,— Nil. (a) from any source in the areas or States mentioned in column C; or (a) as defined in article 366(25) of the Constitution; and (b) by way of dividend or interest on securities. (b) residing in any area specified in Part I or II of the Table appended to paragraph 20 of the Sixth Schedule to the Constitution or in the States of Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura or in the areas covered by notification No. TAD/R/35/50/ 109, dated the 23rd February, 1951, issued by the Governor of Assam under the proviso to the said paragraph 20(3) [as it stood immediately before the commencement of the North-Eastern Areas (Reorganisation) Act, 1971 (18 of 1971) or in the Union territory of Ladakh]. 20. Any income which accrues or arises- An individual, being a Sikkimese. Nil. (a) from any source in the State of Sikkim; or (b) by way of dividend or interest on securities. 21. The amount of any subsidy received from or through the concerned Board under a scheme. An assessee who carries on the business of growing and manufacturing tea, rubber, coffee, cardamom or such other commodity in India as may be notified by the Central Government. (a) Such scheme is for replantation or replacement of tea bushes, rubber plants, coffee plants, cardamom plants or plants for the growing of such other commodity or for rejuvenation or consolidation of areas used for cultivation of tea, rubber, coffee, cardamom or such other commodity; (b) such scheme is notified by the Central Government; and (c) the assessee furnishes to the Assessing Officer, along with his return of income for the tax year concerned or within such further time as the Assessing Officer may allow, a certificate from the concerned Board, as to the amount of such subsidy paid to the assessee during the tax year. 22. The income which is chargeable under the head "Income from house property", "Capital gains" or "Income from other sources" or from a trade or business. Any local authority. Income from trade or business is eligible for exclusion from total income if such income accrues or arises from the supply of— (a) a commodity or service (not being water or electricity) within its own jurisdictional area; or (b) water or electricity within or outside its own jurisdictional area. 23. Any income of a research association. A research association for the time being approved for the purpose of section 45(3)(a). (a) Applies its income or accumulates it for application, wholly and exclusively to the objects for which it is established; (b) invests its funds received in the forms or modes specified in section 350; (c) satisfies such conditions as may be prescribed; and (d) the procedure for withdrawal of approval granted shall be in such manner as may be prescribed. 24. Any income (other than income chargeable under the head "Income from house property" or any income received for rendering any specific services or income by way of interest or dividends derived from its investments). An association or institution established in India having as its object the control, supervision, regulation or encouragement of the profession of, law, medicine, accountancy, engineering or architecture or such other profession as the Central Government may, by notification specify in this behalf. (a) The association or institution applies its income, or accumulates it for application, solely to the objects for which it is established; (b) the association or institution is for the time being approved by the Central Government by general or special order; and (c) the procedure for withdrawal of approval granted shall be in such manner, as may be prescribed. 25. Any income attributable to the business of production, sale, or marketing, of khadi or products of village industries. An institution constituted as a public charitable trust or registered under the Societies Registration Act, 1860 (21 of 1860), or under any other law corresponding to that Act in force in any part of India. (a) Such institution exists solely for the development of khadi or village industries or both, and not for the purposes of profit; (b) such institution applies its income, or accumulates it for application, solely for the development of khadi or village industries, or both; (c) such institution is approved for such purpose by the Khadi and Village Industries Commission for a period not exceeding three tax years at any one time; and (d) the procedure for withdrawal of approval granted shall be in such manner as may be prescribed 26. Any income from the activity of securitisation. A securitisation trust. Nil. 27. Any income, by way of contributions received from recognised stock exchanges and the members thereof. Any Investor Protection Fund set up by recognised stock exchanges in India, either jointly or separately. (a) Such fund is notified by the Central Government; and (b) where any amount standing to the credit of the Fund and not charged to income-tax during any tax year is shared, either wholly or in part, with a recognised stock exchange, the whole of the amount so shared shall be deemed to be the income of the tax year in which such amount is so shared and shall accordingly be chargeable to income-tax. 28. Any income, by way of contributions received from commodity exchanges and the members thereof. Any Investor Protection Fund set up by commodity exchanges in India, either jointly or separately. (a) Such fund is notified by the Central Government; and (b) where any amount standing to the credit of the said Fund and not charged to income-tax during any tax year is shared, either wholly or in part, with a commodity exchange, the whole of the amount so shared shall be deemed to be the income of the tax year in which such amount is so shared and shall accordingly be chargeable to income- tax. 29. Any income, by way of contributions received from a depository. Any Investor Protection Fund set up as per the regulations by a depository. (a) Such fund is notified by the Central Government; and (b) where any amount standing to the credit of the Fund and not charged to income-tax during any tax year is shared, either wholly or in part with a depository, the whole of the amount so shared shall be deemed to be the income of the tax year in which such amount is so shared and shall, accordingly, be chargeable to income-tax. 30. (a) Any income by way of contribution received from specified persons; Any Core Settlement Guarantee Fund, set up by a recognised clearing corporation. (a) Such fund is notified by the Central Government; and (b) any income by way of penalties imposed by the recognised clearing corporation and credited to the Core Settlement Guarantee Fund; (b) where any amount standing to the credit of the Fund and not charged to income-tax during any tax year is shared, either wholly or in part with the specified person, the whole of the amount so shared shall be deemed to be the income of the tax year in which such amount is so shared and shall, accordingly, be chargeable to income-tax. (c) any income from investment made by the Fund. 31. Any income chargeable under the heads "Income from house property" and "Income from other sources". (a) A registered union within the meaning of the Trade Unions Act, 1926 (16 of 1926), formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen; or Nil. (b) an association of registered unions referred to in clause (a). 32. Any interest on securities, and any capital gains of the fund arising from the sale, exchange or transfer of such securities. Provident Fund to which the Provident Funds Act, 1925 (19 of 1925) applies. Such securities are held by, or are the property of such Provident Fund. 33. Any income of the nature and to the extent, arising from the international sporting event held in India. Any person notified by the Central Government. (a) Such international sporting event— (i) is approved by the international body regulating the international sport relating to such event; (ii) has participation by more than two countries; and (iii) is notified by the Central Government for the purposes of this clause; and (b) nature and extent of such income is notified by the Central Government. 34. Any income, of the nature and to the extent, which the Central Government may notify in this behalf. A body or authority which has been established or constituted or appointed under a treaty or an agreement entered into by the Central Government with two or more countries or a convention signed by the Central Government. Such body or authority— (a) is established or constituted or appointed not for the purposes of profit; and (b) is notified by the Central Government. 35. Any amount received as a loan, either in lump sum or in instalment, in a transaction of reverse mortgage referred to in section 70(1)(zh). Any individual. Nil. 36. Any income of the nature and to the extent which the Central Government may, by notification, specify in this behalf. A body or authority or Board or Trust or Commission (by whatever name called), or a class thereof, other than those covered under Schedule VII (Table: Sl. No. 42). Such body or authority or Board or Trust or Commission- (a) has been established or constituted by or under a Central Act, State or Provincial Act, or constituted by the Central Government or a State Government, with the object of regulating or administering any activity for the benefit of the general public; (b) is not engaged in any commercial activity; and (c) is notified by the Central Government. 37. Any income accruing or arising as a result of arrangement for replenishment of crude oil stored in its storage facility in pursuance of the directions of the Central Government in this behalf. Indian Strategic Petroleum Reserves Limited, being a wholly owned subsidiary of the Oil Industry Development Board under the Ministry of Petroleum and Natural Gas. It shall not apply to an arrangement, if the crude oil is not replenished in the storage facility within three years from the end of the tax year in which the crude oil was removed from the storage facility for the first time. 38. Any gratuity computed as per the provisions of section 19(1)(Table: Sl. No. 3.C) to (Table: Sl. No. 6.C). Any widow, children or dependants on death of an employee. Nil. 37[38A. Disability Pension received (including service element and disability element). An individual who has been a member of the armed forces (including paramilitary forces) of the Union. (a) The individual has been invalided out of service in the armed forces on account of bodily disability attributable to, or aggravated by such service; and (b) the individual has not retired on superannuation or otherwise. 38B. Any interest on compensation amount awarded by Motor Accident Claims Tribunal. An individual or his legal heir. Such interest is received under the Motor Vehicles Act, 1988 (59 of 1988). 38C. Any income in respect of any award or agreement made on account of compulsory acquisition of any land. An individual or a Hindu undivided family. Such award or agreement is made under the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013), except under section 46 of the said Act. 38D. Any income chargeable under the head "Capital gains" arising from the transfer of specified capital asset. An individual or a Hindu undivided family. (a) Such eligible person was the owner of such specified capital asset as on the 2nd June, 2014; (b) such specified capital asset is transferred under the Land Pooling Scheme covered under the Andhra Pradesh Capital City Land Pooling Scheme (Formulation and Implementation) Rules, 2015 made under the provisions of the Andhra Pradesh Capital Region Development Authority Act, 2014 (Andhra Pradesh Act 11 of 2014) and the rules, regulations and Schemes made under the said Act; and (c) such eligible person was handed over possession of reconstituted plot or land on or before the 31st March, 2031.] 39. Any income falling under section 10(15)(iic) or (15)(iv)(i) or (19A) or (40) of the Income-tax Act, 1961(43 of 1961), shall be subject to the conditions as provided therein. Note 1.—For the purposes of Sl. No. 3, the expression "disaster" shall have the same meaning as assigned to it in section 2(d) of the Disaster Management Act, 2005 (53 of 2005). Note 2.—For the purposes of Sl. Nos. 8 and 15, the expression "family" in relation to an individual, means— (i) the spouse and children of the individual; and (ii) the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual. Note 3.—For the purposes of Sl. No. 18, the expression "compensation or consideration" includes the compensation or consideration enhanced or further enhanced by any court, Tribunal or other authority. Note 4.—For the purposes of Sl. No. 20, the expression "Sikkimese" means— (i) an individual, whose name is recorded in the register maintained under the Sikkim Subjects Regulation, 1961 read with the Sikkim Subject Rules, 1961 (herein referred to as the "Register of Sikkim Subjects"), immediately before the 26th April, 1975; (ii) an individual, whose name is included in the Register of Sikkim Subjects by virtue of the Government of India Order No. 26030/36/90-I.C.I., dated the 7th August, 1990 and Order of even number dated the 8th April, 1991; (iii) any other individual, whose name does not appear in the Register of Sikkim Subjects, but it is established beyond doubt that the name of the father or husband or paternal grand-father or brother from the same father of such individual has been recorded in that register; (iv) any other individual, whose name does not appear in the Register of Sikkim Subjects but it is established that such individual was domiciled in Sikkim on or before the 26th April, 1975; or (v) any other individual, who was not domiciled in Sikkim on or before the 26th April, 1975, but it is established beyond doubt that the father or husband or paternal grand-father or brother from the same father of such individual was domiciled in Sikkim on or before the 26th April, 1975. Note 5.—For the purposes of Sl. No. 21, the expression "concerned Board" means— (i) in relation to tea, the Tea Board shall mean the Tea Board established under section 4 of the Tea Act, 1953 (29 of 1953); (ii) in relation to rubber, the Rubber Board constituted under section 4 of the Rubber Act, 1947 (24 of 1947); (iii) in relation to coffee, the Coffee Board constituted under section 4 of the Coffee Act, 1942 (7 of 1942); (iv) in relation to cardamom, the Spices Board constituted under section 3 of the Spices Board Act, 1986 (10 of 1986); (v) in relation to any other commodity, any Board or other authority established under any law for the time being in force which the Central Government may, by notification, specify in this behalf. Note 6.—For the purposes of Sl. No. 22, the expression "local authority" means— (i) Panchayat as referred to in article 243(d) of the Constitution; or (ii) Municipality as referred to in article 243P(e) of the Constitution; or (iii) Municipal Committee and District Board, legally entitled to, or entrusted by the Government with, the control or management of a Municipal or local fund; or (iv) Cantonment Board constituted under section 3 of the Cantonments Act, 2006 (4 of 2006). Note 7.—For the purposes of Sl. No. 25,— (a) "Khadi and Village Industries Commission" means the Khadi and Village Industries Commission established under the Khadi and Village Industries Commission Act, 1956 (61 of 1956); and (b) "khadi" and "village industries" shall have the same meanings as respectively assigned to them in that Act. Note 8.—For the purposes of Sl. No. 26,— (a) "securitisation" shall have the same meaning as assigned to it,— (i) in regulation 2(1)(r) of the Securities and Exchange Board of India (Public Offer and Listing of Securitised Debt Instruments) Regulations, 2008 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and the Securities Contracts (Regulation) Act, 1956 (42 of 1956); or (ii) in section 2(1)(z) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); or (iii) under the guidelines on securitisation of standard assets issued by the Reserve Bank of India; (b) "securitisation trust" shall have the meaning assigned to it in section 221(6)(d). Note 9.—For the purposes of Sl. No. 28,— "commodity exchange" shall mean a registered association as defined in section 2(jj) of the Forward Contracts (Regulation) Act, 1952 (74 of 1952). Note 10.— For the purposes of Sl. No. 29,— (a) "depository" shall have the same meaning as assigned to it in section 2(1)(e) of the Depositories Act, 1996 (22 of 1996); (b) "regulations" shall mean the regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and the Depositories Act, 1996 (22 of 1996). Note 11: For the purposes of Sl. No. 30,— (a) "recognised clearing corporation" shall have the same meaning as assigned to it in— (i) regulation 2(1)(p) of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and the Securities Contracts (Regulation) Act, 1956 (42 of 1956); or (ii) regulation 2(1)(n) of the International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019); (b) "regulations" means— (i) the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 made under the Securities Contracts (Regulation) Act, 1956 (42 of 1956); or (ii) the International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019); (c) "specified person" means— (i) any recognised clearing corporation which establishes and maintains the Core Settlement Guarantee Fund; (ii) any recognised stock exchange, being a shareholder in such recognised clearing corporation, or a contributor to the Core Settlement Guarantee Fund; and (iii) any clearing member contributing to the Core Settlement Guarantee Fund. 38[Note 12: For the purposes of Sl. No. 38A,— (a) the provisions as mentioned against the said serial number shall apply on or after such date as may be notified by the Central Government in this behalf; and (b) pending such notification, the entire disability pension, that is, disability element and service element of a disabled officer of the Indian armed forces shall be exempt from income-tax. Note 13: For the purposes of Sl. No. 38D, "specified capital asset" means — (a) the land or building or both owned by the assessee as on the 2nd June, 2014 and which has been transferred under the Scheme; or (b) the land pooling ownership certificate issued under the Scheme to the assessee in respect of land or building or both referred to in clause (a); or (c) the reconstituted plot or land, as the case may be, received by the assessee in lieu of land or building or both referred to in clause (a) in accordance with the Scheme, if such plot or land, as the case may be, so received is transferred within two years from the end of the financial year in which the possession of such plot or land was handed over to him.]

In computing the total income of a tax year of any eligible person mentioned in column C of the Table below, the income mentioned in column B of the said Table shall not be included, subject to the conditions mentioned in column D of the said Table, and the expressions used in columns B to D shall have the meanings respectively assigned to them in the Notes below the said Table: TABLE Sl. No. Income not to be included in total income Eligible persons Conditions A B C D 1. Any income by way of interest. (a) A person being an individual, who is a resident outside India as defined in section 2(w) of the Foreign Exchange Management Act, 1999 (42 of 1999); or Such interest is on moneys standing to the credit of such person in a Non-Resident (External) Account in any bank in India as per the said Act and the rules made thereunder. (b) a person being an individual who has been permitted by the Reserve Bank of India to maintain the said account. 2. Any remuneration received for service in the capacity as an official mentioned in column C, not being a citizen of India. An official, by whatever name called, of an embassy, high commission, legation, commission, consulate or the trade representation of a foreign State, or as a member of the staff of any of these officials. (a) The remuneration received as a trade commissioner or other official representative in India of the government of a foreign State (not holding office as such in an honorary capacity), or as members of the staff, if any, of the government, resident for similar purposes in the country concerned enjoy a similar exemption in that country; and (b) the members of the staff are subjects of the country represented and are not engaged in any business or profession or employment in India otherwise than as members of such staff. 3. Any remuneration received as an employee for services rendered by him during his stay in India. A person who is an employee of a foreign enterprise, not being a citizen of India. (a) The foreign enterprise is not engaged in any trade or business in India; (b) his stay in India does not exceed in the aggregate a period of ninety days in such tax year; and (c) such remuneration is not liable to be deducted from the income of the employer chargeable under this Act. 4. Any income chargeable under the head "Salaries", received or due as remuneration for services rendered in connection with his employment on a foreign ship. Any individual being a non-resident, not being a citizen of India. The total stay of such individual in India does not exceed in the aggregate a period of ninety days in the tax year. 5. Any remuneration received as an employee of the Government of a foreign State. An employee of the Government of a foreign State, not being a citizen of India. Such remuneration is received during his stay in India in connection with his training in any establishment or office of, or in any undertaking owned by— (a) the Government; or (b) any company in which the entire paid-up share capital is held by the Central Government or any State Government or State Governments, or partly by the Central Government and partly by one or more State Governments; or (c) any company which is a subsidiary of a company referred to in clause (b); or (d) any corporation established by or under a Central Act or State Act or Provincial Act; or (e) any society registered under the Societies Registration Act, 1860 (21 of 1860), or under any other law and wholly financed by the Central Government, or any State Government or State Governments, or partly by the Central Government and partly by one or more State Governments. 6. Any income arising by way of royalty or fees for technical services. Any foreign company. (a) Such company is notified by the Central Government; and (b) such income is received in pursuance of an agreement entered into with the Central Government for providing services in or outside India in projects connected with security of India. 7. Any income arising by way of royalty from, or fees for technical services rendered in or outside India. A non-resident, not being a company, or a foreign company. (a) Such royalty is received from the National Technical Research Organisation; or (b) such fees is for technical services rendered to the National Technical Research Organisation. 8. Interest received. Non-resident or a person who is not ordinarily resident. Such interest is received in India on a deposit made on or after the 1st April, 2005 in an Offshore Banking Unit referred to in section 2(u) of the Special Economic Zones Act, 2005 (28 of 2005). 9. Income from lease rentals, by whatever name called, of cruise ship. Foreign company. (a) Such income is received from a specified company which operates such ship or ships in India; (b) such foreign company and the specified company are subsidiaries of the same holding company; and (c) such income is received or accrues or arises in India for any relevant tax year beginning on or before the 1st April, 2029. 10. Any income derived in India by way of interest, dividends or Capital gains from investments made. The European Economic Community. Such investments are made out of its funds under such scheme as the Central Government may, by notification specify. 11. Any income received in India in Indian currency. A foreign company. (a) Such income is on account of sale of crude oil or any other goods or rendering of services, as may be notified by the Central Government in this behalf, to any person in India; (b) receipt of such income in India by the foreign company is pursuant to an agreement or an arrangement entered into by the Central Government or approved by the Central Government; (c) such foreign company and the agreement or arrangement is notified by the Central Government, having regard to the national interest; and (d) such foreign company is not engaged in any activity in India, other than activity resulting in such income. 12. Any income accruing or arising on account of storage of crude oil in a facility in India and sale of such crude oil to any person resident in India. A foreign company. (a) Such storage and sale by the foreign company is pursuant to an agreement or an arrangement entered into by the Central Government or approved by the Central Government; and (b) such foreign company and the agreement or arrangement is notified by the Central Government, having regard to the national interest. 13. Any income accruing or arising on account of sale of leftover stock of crude oil, if any, from the facility in India after the expiry of the agreement or arrangement referred to against serial number 12 or on termination of the said agreement or arrangement. A foreign company. Such sale shall be as per the terms mentioned in the said agreement or arrangement, subject to such conditions as may be notified by the Central Government in this behalf. 39[13A. Any income arising on account of providing capital goods, equipment or tooling to a contract manufacturer, being a company resident in India. A foreign company, who is providing capital goods, equipment or tooling to the contract manufacturer for use in electronic manufacturing in India. (a)Ownership of such capital goods, equipment or tooling remains with the foreign company; (b)such capital goods, equipment or tooling is under the control and direction of the contract manufacturer; (c)the contract manufacturer is located in a custom bonded area, that is, a warehouse referred to in section 65 of the Customs Act, 1962 (52 of 1962); (d)the contract manufacturer produces electronic goods on behalf of the foreign company for a consideration; (e)such exemption shall be available up to the tax year 2030-2031. 13B. Any income which accrues or arises outside India, and is not deemed to accrue or arise in India. An individual, being a non-resident for a period of five consecutive tax years immediately preceding the tax year during which he visits India for the first time for rendering services in India in connection with any scheme as may be notified by the Central Government. (a)Such individual, during the relevant tax year renders any service in India in connection with any scheme as may be notified by the Central Government; (b)such exemption shall not be available beyond a period of five consecutive tax years commencing from the first tax year during which he visits India in connection with such scheme; and (c)such other conditions, as may be prescribed. 13C. Any income accruing or arising in India or deemed to accrue or arise in India by way of procuring data centre services from a specified data centre. A foreign company. (a) Such foreign company is notified by the Central Government in this behalf; (b) such foreign company does not own or operate any of the physical infrastructure or any resources of the specified data centre; (c) all sales by such foreign company to users located in India are made through a reseller entity being an Indian company; (d)such foreign company maintains and furnishes such information in such form and manner, as may be prescribed; and (e) such exemption shall be available up to tax year ending on the 31st March, 2047.] 39a[13D. Any interest on Government security, and any capital gains arising from the sale, exchange or transfer of such Government security. A Foreign Institutional Investor. Such exemption shall be subject to furnishing of information in such form and manner, as may be prescribed. 13E. Any interest on Government security, and any capital gains arising from the sale, exchange or transfer of such Government security. Bank for International Settlements. Such exemption shall be subject to furnishing of information in such form and manner, as may be prescribed.] 14. Any income falling under section 10(6A), (6B), (6BB), (15A), (15)(iiia), (15)(iiib), (15)(iiic) or (15)(iv)(a), (15)(iv)(b) or (15)(iv)(fa) of the Income-tax Act, 1961 (43 of 1961) subject to the conditions as specified therein. Note 1.—For the purposes of Sl. No. 9,— (a) "specified company" means any company, other than a domestic company which operates cruise ships in India and opts to pay tax as per the provisions of section 61(2) (Table: Sl. No. 2); (b) "holding company", in relation to a foreign company or a specified company, means a company of which such companies are subsidiary companies; and (c) "subsidiary company" or "subsidiary", in relation to a holding company, means a company in which the holding company exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies. Note 2: For the purposes of Sl. No. 10,— "European Economic Community" means the European Economic Community established by the Treaty of Rome of 25th March, 1957. 40[Note 3: For the purposes of Sl. No. 13C,— (a) "data centre" means a dedicated secure space within a building or centralised location where computing and networking equipment is concentrated for the purpose of collecting, storing, processing, distributing or allowing access to large amounts of data; (b) "data centre services" means the services provided by a data centre through the use of physical infrastructure including land, buildings, mechanical electrical power equipments, cooling system, security and information technology infrastructure including servers, computers, storage systems, operating systems, security solutions, network and associated software platforms, networking and other equipment, human resource in India; (c) "specified data centre" means a data centre which is— (i) set up under an approved scheme and is notified in this behalf by the Central Government in the Ministry of Electronics and Information Technology; and (ii) owned and operated by an Indian company.] 40a[Note 4: For the purposes of Sl. Nos. 13D and 13E,— (a) "Bank for International Settlements" means the Bank for International Settlements established at the Hague Conference in 1930 and headquartered at Basel, Switzerland; (b) "Foreign Institutional Investor" shall have the meaning assigned to it in section 210(6)(a); (c) "Government security" shall have the same meaning as assigned to it in section 2(f) of the Government Securities Act, 2006 (38 of 2006).]

In computing the total income of a tax year of any eligible person mentioned in column C of the Table below, the income mentioned in column B of the said Table shall not be included, subject to the conditions mentioned in column D of the said Table, and the expressions used in columns B to D of the said Table shall have the meanings respectively assigned to them in Notes below the said Table: TABLE Sl. No. Income not to be included in total income Eligible persons Conditions A B C D 1. Any income other than the income chargeable under the head "Profits and gains of business or profession". An investment fund. Nil. 2. Any income referred to in section 224, accruing or arising to, or received being that proportion of income which is of the same nature as income chargeable under the head "Profits and gains of business or profession". A unit holder of an investment fund. Nil. 3. Any income by way of- (a) interest received or receivable from a special purpose vehicle; or (b) dividend received or receivable from a special purpose vehicle. A business trust. Nil. 4. Any income by way of renting or leasing or letting out any real estate asset owned directly by such business trust. A business trust, being a real estate investment trust. Nil. 5. Any distributed income referred to in section 223. Any unit holder of a business trust. Exemption shall not be allowed on that proportion of the income which is of the same nature as-- (a) interest received or receivable from a special purpose vehicle by the business trust; or (b) dividend received or receivable from a special purpose vehicle by the business trust (in a case where the special purpose vehicle has exercised the option under section 200); or (c) income of a business trust, being a real estate investment trust, by way of renting or leasing or letting out any real estate asset owned directly by such business trust. 6. Any income from investment in a venture capital undertaking. Venture capital company or venture capital fund other than an investment fund specified in section 224(10)(a). Nil. 7. Any income of the nature of-- (a) dividend; (b) interest; (c) any sum referred to in section 92(2)(k); or (d) long-term capital gains (whether or not such capital gains are deemed as short-term capital gains under section 76), arising from an investment made by a specified person in India, whether in the form of debt or share capital or unit. A specified person. (a) Such investment— (i) is made on or after the 1st April, 2020 but on or before the 31st March, 2030; (ii) is held for at least three years; and (iii) is in,— (A) a business trust being an eligible InvIT; (B) an eligible infrastructure entity; (C) an eligible Alternate Investment Fund; (D) an eligible domestic company; or (E) an eligible Non- banking Financial Company; (b) if any difficulty arises in interpreting or implementing the provisions, the Board may issue guidelines; (c) such guidelines shall be-- (i) issued with the previous approval of the Central Government; (ii) laid before each House of Parliament; and (iii) binding on the Income- tax Authority and the specified person; (d) where any income has not been included in the total income of the specified person, and subsequently during any tax year the specified person fails to satisfy any of these conditions so that the said income would not have been eligible for such non-inclusion, such income shall be chargeable to income-tax as the income of the specified person of that tax year; (e) where an eligible Alternate Investment Fund has investment of less than 100% in one or more of eligible infrastructure entity or eligible domestic company or eligible Non-Banking Financial Company or in an eligible InvIT, income accrued or arisen or received or attributable to such investment, directly or indirectly, which is exempt herein shall be calculated proportionately to that investment made in one or more of the eligible infrastructure entity or eligible domestic company or eligible Non- Banking Financial Company or in an eligible InvIT, in such manner as may be prescribed; (f) where an eligible domestic company has investment of less than 100% in one or more of the eligible infrastructure entity, income accrued or arisen or received or attributable to such investments, directly or indirectly, which is exempt herein shall be calculated proportionately to the investment made in one or more of the eligible infrastructure entity, in such manner, as may be prescribed; (g) where an eligible Non-Banking Financial Company has lending of less than 100% in one or more of the eligible infrastructure entity, income accrued or arisen or received or attributable to such lending, directly or indirectly, which is exempt herein shall be calculated proportionately to the lending made in eligible infrastructure entity, in such manner, as may be prescribed; (h) in case a sovereign wealth fund or pension fund has loans or borrowings, directly or indirectly, for the purposes of making investment in India, such fund shall be deemed to be not eligible for exclusion from total income. 8. Any income falling under section 10(23F) and (23FA) of the Income-tax Act, 1961 (43 of 1961), subject to the conditions as specified therein. Note 1.—For the purposes of Sl. Nos. 1 and 2, the expression "investment fund" shall have the meaning assigned to it in section 224(10)(a). Note 2.—For the purposes of Sl. No. 3, the expression "special purpose vehicle" means an Indian company in which the business trust holds controlling interest and any specific percentage of shareholding or interest, as may be required by the law under which such trust is granted registration. Note 3.—For the purposes of Sl. Nos. 4 and 5, the expression "real estate asset" shall have the same meaning as assigned to it in regulation 2(1)(zj) of the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992). Note 4.—For the purposes of Sl. No. 6,-- (a) "venture capital company" means a company which— (i) has been granted a certificate of registration, before the 21st May, 2012, as a Venture Capital Fund and is regulated under the Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996 (herein referred to as the Venture Capital Funds Regulations) made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); or (ii) has been granted a certificate of registration as Venture Capital Fund as a sub-category of Category I Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 (herein referred to as the Alternative Investment Funds Regulations) made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), and which fulfils the following conditions:— (A) it is not listed on a recognised stock exchange; (B) it has invested not less than two-thirds of its investible funds in unlisted equity shares or equity linked instruments of venture capital undertaking; and (C) it has not invested in any venture capital undertaking in which its director or a substantial shareholder (being a beneficial owner of equity shares exceeding 10% of its equity share capital) holds, either individually or collectively, equity shares in excess of 15% of the paid-up equity share capital of such venture capital undertaking; (b) "venture capital fund" means a fund— (i) operating under a trust deed registered under the provisions of the Registration Act, 1908 (16 of 1908), which— (A) has been granted a certificate of registration, before the 21st May, 2012, as a Venture Capital Fund and is regulated under the Venture Capital Funds Regulations; or (B) has been granted a certificate of registration as Venture Capital Fund as a sub-category of Category I Alternative Investment Fund under the Alternative Investment Funds Regulations or as referred to in regulation 18(2) of the International Financial Services Centres Authority (Fund Management) Regulations, 2022 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019), and which fulfils the following conditions:— (I) it has invested not less than two-thirds of its investible funds in unlisted equity shares or equity linked instruments of venture capital undertaking; (II) it has not invested in any venture capital undertaking in which its trustee or the settler holds, either individually or collectively, equity shares in excess of 15% of the paid-up equity share capital of such venture capital undertaking; (III) the units, if any, issued by it are not listed in any recognised stock exchange; and (IV) any other condition as may be prescribed; or (ii) operating as a venture capital scheme made by the Unit Trust of India; (c) "venture capital undertaking" means— (i) a venture capital undertaking as defined in regulation 2(n) of the Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996; or (ii) a venture capital undertaking as defined in regulation 2(1)(aa) of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. Note 5.—For the purposes of Sl. No. 7,-- (a) "specified person" means— (i) a wholly owned subsidiary of the Abu Dhabi Investment Authority, which— (A) is a resident of the United Arab Emirates; and (B) makes investment, directly or indirectly, out of the fund owned by the Government of Abu Dhabi; (ii) a sovereign wealth fund, which satisfies the following conditions:— (A) it is wholly owned and controlled, directly or indirectly, by the government of a foreign country; (B) it is set up and regulated under the law of such foreign country; (C) the earnings of the said fund are credited either to the account of the government of that foreign country or to any other account designated by that government so that no portion of the earnings enures any benefit to any private person; (D) the asset of the said fund vests in the government of such foreign country upon dissolution; (E) the provisions of items (C) and (D) shall not apply to any payment made to creditors or depositors for loan taken or borrowing for the purposes other than for making investment in India; (F) it does not participate in the day-to-day operations of investee but the monitoring mechanism to protect the investment with the investee including the right to appoint directors or executive director shall not be considered as participation in the day to day operations of the investee; and (G) it is specified by the Central Government, by notification for this purpose and fulfils the conditions specified in such notification; (iii) a pension fund, which— (A) is created or established under the law of a foreign country including the laws made by any of its political constituents, being a province, State or local body, by whatever name called; (B) is not liable to tax in such foreign country or if liable to tax, exemption from taxation for all its income has been provided by such foreign country; (C) does not participate in the day-to-day operations of investee but the monitoring mechanism to protect the investment with the investee including the right to appoint directors or executive director shall not be considered as participation in day-to-day operations of the investee; (D) is specified by the Central Government, by notification for this purpose and fulfils conditions specified in such notification; and (E) satisfies such other conditions as may be prescribed; (iv) the Public Investment Fund of the Government of the Kingdom of Saudi Arabia; (v) a wholly owned subsidiary of the Public Investment Fund of the Government of the Kingdom of Saudi Arabia, which-- (A) is a resident of Saudi Arabia; and (B) makes investment, directly or indirectly, out of the fund owned by such Government; (b) "investee" means a business trust or eligible infrastructure entity or eligible Alternate Investment Fund or eligible domestic company or eligible Non-Banking Financial Company, in which the sovereign wealth fund or the pension fund has made the investment directly or indirectly; (c) "loan and borrowing" means— (i) any loan taken or borrowing by a sovereign wealth fund from or any deposit or investment made in a sovereign wealth fund by, any person other than the Government of the country in which the sovereign wealth fund is set up; (ii) any loan taken or borrowing by a pension fund from or any deposit or investment made in a pension fund by any person, but shall not include-- (A) the deposit or investment which represents statutory obligations and defined contributions of one or more funds or plans established for providing retirement, social security, employment, disability or death benefits; or (B) any similar compensation to the participants or beneficiaries of such funds or plans, as the case may be; (d) "eligible infrastructure entity" means a company or enterprise or an entity carrying on-- (i) the business of developing, or operating and maintaining, or developing, operating and maintaining an infrastructure facility as defined in section 138; or (ii) such other business as the Central Government may, by notification, specify in this behalf; (e) "eligible Alternate Investment Fund" means Category-I or Category-II Alternative Investment Fund-- (i) regulated under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); (ii) having not less than 50% investment in one or more of the eligible infrastructure entity or eligible domestic company or eligible Non-Banking Financial Company or in an eligible InvIT, computed in such manner as may be prescribed; (f) "eligible domestic company" means a domestic company-- (i) set up and registered on or after the 1st April, 2021; and (ii) having minimum 75% investments in one or more of the eligible infrastructure entities, computed in such manner, as may be prescribed; (g) "eligible Non-Banking Financial Company" means-- (i) a non-banking financial company registered as an Infrastructure Finance Company as referred to in notification number RBI/2009-10/316 issued by the Reserve Bank of India or in an Infrastructure Debt Fund, a non-banking finance company as referred to in the Reserve Bank of India (Non-Banking Financial Company-Scale Based Regulations) Directions, 2023, issued by the Reserve Bank of India; and (ii) having minimum 90% lending to one or more of eligible infrastructure entities, computed in such manner, as may be prescribed; and (h) "eligible InvIT" means an Infrastructure Investment Trust referred to in section 2(21)(a).