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Taxation Revisionary Series

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CA Intermediate

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May, 2024

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asdf

Lecture 10 – Deductions from Gross

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IS Total Income
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CA Nishant Kumar
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Income Tax Revision Schedule

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Date Day Topic

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01-02-2024 Thursday L1 - Basics of Taxation and General Tax Rates
03-02-2024 Saturday L2 - Residence and Scope of Total Income
06-02-2024 Tuesday L3 - Income from Salaries

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08-02-2024 Thursday L4 - Income from House Property

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10-02-2024 Saturday L5 - Profits and Gains from Business or Profession
13-02-2024 Tuesday L6 - Capital Gains
15-02-2024 Thursday L7 - Income from Other Sources

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17-02-2024 Saturday L8 - Clubbing of Income
20-02-2024 Tuesday
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L9 - Set Off; Carry Forward of Losses
22-02-2024 Thursday L10 - Deductions from Gross Total Income
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24-02-2024 Saturday L11 - Return Filing and Self Assessment
27-02-2024 Tuesday L12 - TDS, TCS, Advance Tax
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29-02-2024 Thursday L13 - Income Tax Liability - Computation and Optimization

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GST Revision Schedule

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Date Day Topic

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02-03-2024 Saturday L1 - Supply Under GST
05-03-2024 Tuesday L2 - Charge Under GST; Composition Levy
07-03-2024 Thursday L3 - Place of Supply

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09-03-2024 Saturday L4 - Exemptions from GST

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12-03-2024 Tuesday L5 - Time of Supply
14-03-2024 Thursday L6 - Value of Supply

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16-03-2024 Saturday L7 - Input Tax Credit
19-03-2024 Tuesday L8 - Registration Under GST
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21-03-2024 Thursday L7 - Tax Invoice; Credit and Debit Notes; E-Way Bill
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23-03-2024 Saturday L8 - Accounts and Records; TDS & TCS
26-03-2024 Tuesday L9 - Payment of Tax
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28-03-2024 Thursday L10 - Returns Under GST

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 Chapter 10 – Deductions from Gross Total
Income
Overview

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Category Description Details
Section 10: Various sources of • Exempt incomes are not considered in taxable
Exemptions income are exempt income calculation.
from total taxable • Certain exemptions lost under concessional rates
income. (section 115BAC): Leave travel concession, House
Rent Allowance, Special Allowances (with

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exceptions), Daily allowance or Constituency
allowance for MPs or State Legislatures, Exemption
related to minor's income.

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Deduction Deductions from • Deductions for specific investments/expenses
under Chapter gross total income under old tax regime.
VI-A and to determine • Under section 115BAC, limited deductions allowed
Section 10AA taxable income. (e.g., employer's contribution to NPS, Central
Government's Agnipath Scheme, employment of
new employees).
• Section 10AA: Deductions for SEZ units, not
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applicable under concessional rates of section
115BAC.
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Difference Comparison of • Deduction: Investments/contributions allow for

between deduction (Chapter deductions from Gross Total Income, relevant
Deduction and VI-A & Section under Sections 80C to 80U and Section 10AA.
Exemption 10AA) and • Exemption: Incomes exempt under Section 10 are
exemption (Section not included in Gross Total Income.
10).
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General No gross total Chapter VI-A includes deductions for payments, certain
Provision income means no incomes, and other deductions, including those under
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deductions are section 10AA.

permissible.
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Deductions from Gross Total Income

Deduction u/s
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Deductions u/Chapter VI-A

10AA
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Deductions in Deductions in Deductions in

respect of certain respect of certain respect of other Other deductions
payments incomes incomes

Later on, in this chapter, we’ll also be studying certain exemptions u/s 10.

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 Deduction in Respect of Investment in Specified Assets [Section 80C]
Deduction of upto ₹1,50,000 is available to Individuals/HUFs on investments/payments in the
following modes under Old Scheme:

S. Particulars
No.
1. Life Insurance Premium:

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Policy Issue Date Exemption under Section 10(10D) Deduction under Section
80C
Before 01-04- Any sum received including bonus is Premium up to 20% of
2003 exempt. Actual Capital Sum Assured
is deductible.
01-04-2003 to 31- Sum received including bonus is exempt Premium up to 20% of

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03-2012 unless premium > 20% of Actual Capital Actual Capital Sum Assured
Sum Assured. is deductible.
01-04-2012 to 31- Sum received including bonus is exempt Premium up to 10% of

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03-2013 unless premium > 10% of Actual Capital Actual Capital Sum Assured
Sum Assured. is deductible.
On or after 01- Sum received including bonus is exempt Premium up to 15% of
04-2013 unless premium > 15% of Actual Capital Actual Capital Sum Assured
(Disability under Sum Assured. is deductible.
Section 80U or
80DDB)
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On or after 01- Sum received including bonus is exempt Premium up to 10% of
04-2013 (Others) unless premium > 10% of Actual Capital Actual Capital Sum Assured
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Sum Assured. is deductible.

On or after 01- Exempt unless premium exceeds 10% Premium up to 10% of
04-2023 or 15% of Actual Capital Sum Assured or Actual Capital Sum Assured
premium > ₹5,00,000 in any year. (15% for persons suffering
Exemption choice available for policies disability u/s 80U or 80DDB)
within ₹5,00,000 aggregate premium is deductible.
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limit.
2. Contribution to PPF/ SPF/ RPF and approved superannuation fund
3. Repayment of housing loan taken from Govt., bank, LIC, specified employer etc.
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4. Tuition fees to any Indian university, college, school for full-time education of any two children
5. Term deposit for a fixed period of not less than 5 years with schedule bank
6. Subscription to notified bonds of NABARD
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7. Five-year post-office time deposit

8. Senior Citizen’s Savings Scheme Account etc.
9. Contribution by Central Govt. employee to additional account (Tier II A/c) of NPS referred to
u/s 80CCD
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Deduction in Respect of Contribution to Certain Pension Funds [Section

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80CCC]
Deduction of upto ₹1,50,000 is available to Individuals for any amount paid or deposited to keep in
force a contract for any annuity plan of LIC of India or any other insurer for receiving pension from the
fund under Old Scheme, such as LIC Pension Fund.

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 Deduction in Respect of Contribution to Pension Scheme Notified by
the Central Government [Section 80CCD]
Feature Section 80CCD(1) Section Section 80CCD(2)
80CCD(1B)
Applicability Central Govt. employees All individuals Employer contributions to
post 01/01/2004, others, contributing to employee's pension
and self-employed NPS account

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Scheme Central Govt. pension National Pension Applies to Central Govt.,
Recognition schemes, Atal Pension System (NPS) State Govt., and other
Yojana employers' contributions
Deduction Limit • 10% of salary for Additional ₹50,000 • 14% of salary for
employees over Section Govt. employees

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• 20% of gross total 80CCE limit • 10% of salary for
income for self- others
employed
• Max

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₹1,50,000
under Section
80CCE
Tax Regime Must opt out of default tax Must opt out of Available under both old
regime under section default tax regime and new tax regimes
115BAC(1A) under section
115BAC(1A)
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Section 80CCE Yes, included in the No, additional No, employer's
Limit ₹1,50,000 limit deduction over contribution not included
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80CCE limit in the ₹1,50,000 limit

Taxation of Taxable upon withdrawal, - -
Withdrawals opt-out, or annuity
purchase, except under
specific exemptions
Exemption for Up to 60% tax-free under - -
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Closure/Opting Section 10(12A)

Out
Partial Up to 25% of contributions - -
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Withdrawal tax-free under Section

Exemption 10(12B)

Limit on Deductions Under Sections 80C, 80CCC & 80CCD(1) [Section

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80CCE]
As per section 80CCE, maximum permissible deduction u/s 80C, 80CCC & 80CCD(1) is ₹1,50,000.
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However, the limit ₹1.50 lakh under section 80CCE does not apply to deduction under section 80CCD(2)
and 80CCD(1B).
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 Deduction in Respect of Contribution to Agnipath Scheme [Section
80CCH]
Feature Section 80CCH(1) Section 80CCH(2) Exemption under
Section 10(12C)
Applicability Individual Agniveers enrolled Contributions by the Payments to
in Agnipath Scheme Central Government Agniveers or their
nominees from

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Agnipath Corpus
Fund
Contribution 30% of Agniveer Package by Matching contribution by -
individual Central Government
Interest Interest on contributions - -

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Deduction Deduction for contributions Deduction for Payments from the
Availability to Agniveer Corpus Fund if Government's fund are exempt
opted out of default tax contribution, included in

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regime (115BAC(1A)) salary but deductible
Tax Regime Must opt out of default tax Available under both old Exemption applies
regime under section and new tax regimes regardless of tax
115BAC(1A) regime
Quantum of Amount deposited in Full amount of Full amount received
Deduction Agniveer Corpus Fund Government from the fund is
on/after 1.11.2022 contribution exempt
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Deduction in Respect of Medical Insurance Premium [Section 80D]
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Eligible Payments Permissible Deductions

Premium for Health Insurance Maximum ₹25,000
• For self, spouse, and dependent (₹50,000 if individual or spouse is a senior
children (individual). citizen).
• For any family member (HUF).
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Contribution to CGHS or Notified Scheme Maximum ₹25,000

• By an individual, other than by cash. (₹50,000 if individual or spouse is a senior
citizen).
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Premium for Parents' Health Insurance Maximum ₹25,000

• Paid otherwise than by cash, for (₹50,000 if either or both parents are senior
parents (dependent or not). citizens).
Medical Expenditure on Senior Citizen Maximum ₹50,000
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• Paid otherwise than by cash, where no (If medical expenditure and premium are for
health insurance premium is paid. different parents, total deduction capped at
₹50,000).
Preventive Health Checkup Maximum ₹5,000, in aggregate
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• Payment for self, spouse, dependent (Within the individual limits of ₹25,000/₹50,000).
children, and parents, including cash
payments.
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 Deduction in Respect of Maintenance Including Medical Treatment of
a Dependent Disabled [Section 80DD]
Feature Details
Applicability of Must opt out of default tax regime (Section 115BAC(1A)).
Tax Regime
Eligible Assessee Residents of India, both individuals and HUFs.
Qualifying • Medical treatment, nursing care, training, and rehabilitation of a

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Payments dependent with a disability.
• Payments to a scheme by LIC or other insurers for maintenance of a
disabled dependent, providing annuity or lump sum amount upon
subscriber's death or reaching age 60.
Deemed Income Amount becomes taxable if the dependent dies before the subscriber, except

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if the dependent received annuity or lump sum based on the subscriber
reaching age 60 or more.
Quantum of ₹ 75,000 for disability; ₹ 1,25,000 for severe disability (80% or more).

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Deduction
Conditions for Need a certificate from a medical authority as per the Persons with Disability
Deduction Act, 1995. A new certificate is required after the expiration of the original for
re-evaluation of disability.
Meaning of • For individual: Spouse, children, parents, brother or sister who are
“Dependent” mainly dependent and not claimed under section 80U.
• For HUF: A member who is mainly dependent on the HUF and not
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claimed under section 80U.
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Deduction in Respect of Medical Treatment etc. [Section 80DDB]

Eligible Eligible Payments Permissible Deduction
Assessee
Resident For self or dependant (spouse, children, Actual sum paid or ₹40,000, whichever
Individual parents, brothers, sisters) who are is less (₹1,00,000 for senior citizens),
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wholly or mainly dependant on the minus any amount received from

individual for support and maintenance. insurance or reimbursed by employer.
HUF For any member of the HUF. Actual sum paid or ₹40,000, whichever
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is less (₹1,00,000 for senior citizens),

minus any amount received from
insurance or reimbursed by employer.
Tax Regime Deduction available only if opted out of -
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Applicability default tax regime (Section 115BAC(1A)).

Deduction in Respect of Interest on Loan Taken for Higher Education

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[Section 80E]
Feature Details
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Eligible Assessee Individual

Eligible Interest on loan taken from any financial institution or approved charitable
Payments institution for higher education of:
• The individual
• Spouse or children of the individual
• Student for whom the individual is the legal guardian

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 Permissible Interest payment deduction is available for:
Deduction • The initial assessment year (year of commencement of interest
payment)
• Seven assessment years immediately succeeding the initial assessment
year or until the interest is paid in full by the assessee, whichever is
earlier
Tax Regime Deduction available only if opted out of default tax regime (Section
Applicability 115BAC(1A))

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Deduction for Interest on Loan Borrowed for Acquisition of House
Property by an Individual [Section 80EE]
Feature Details

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Eligible Assessee Individual
Eligible Payments Interest on loan borrowed from a financial institution (bank/HFC) for
acquisition of residential house property.

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Permissible Up to ₹50,000 for interest on loan.
Deduction
Conditions for • Loan sanctioned during P.Y. 2016-17
Deduction • Loan amount ≤ ₹35 lakhs
• Value of house ≤ ₹50 lakhs
• The assessee should not own any residential house on the date of
loan sanction.
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Tax Regime Deduction available only if opted out of default tax regime (Section
Applicability 115BAC(1A)).
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Deduction in Respect of Interest Payable on Loan Taken for Acquisition

of Residential House Property [Section 80EEA]
Feature Details
Eligible Assessee Individual
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Eligible Payments Interest payable on loan taken from a financial institution (FI) for acquisition
of residential house property
Permissible Up to ₹1,50,000 for interest on loan
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Deduction
Conditions for • Loan sanctioned by FI from 1st April 2019 to 31st March 2022
Deduction • Stamp Duty Value of house ≤ ₹45 lakhs
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• The individual should not own any residential house at the date of
loan sanction
• The individual should not be eligible for deduction under Section
80EE
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Tax Regime Deduction available only if opted out of default tax regime (Section
Applicability 115BAC(1A))
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 Deduction in Respect of Interest Payable on Loan Taken for Purchase of
Electric Vehicle [Section 80EEB]
Feature Details
Eligible Assessee Individual
Eligible Payments Interest payable on loan taken from a financial institution (FI) or certain
NBFCs for the purchase of an electric vehicle
Permissible Up to ₹1,50,000 for interest on loan. Loan must be sanctioned by FI between

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Deduction 1.4.2019 to 31.3.2023
Tax Regime Deduction available only if opted out of default tax regime (Section
Applicability 115BAC(1A))

Deduction in Respect of Donations to Certain Funds, Charitable

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Institutions etc. [Section 80G]
1. Eligible Assessee: All Assessees

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2. Eligible Payments:

Category Donee Deduction Qualifying Limit

Rate
I Prime Minister’s National Relief Fund, National 100% of No qualifying
Children’s Fund, Swachh Bharat Kosh, National amount limit
Defence Fund, PM CARES Fund, etc. donated
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II Prime Minister’s Drought Relief Fund 50% of No qualifying
amount limit
donated
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III • Government/local authority for family 100% of Subject to

planning amount qualifying limit
• Donations to Indian Olympic Association or donated
notified entities for sports/games
development
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IV • Charitable institutions/funds with 50% of Subject to

prescribed conditions amount qualifying limit
• Government/local authority for charitable donated
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purposes (excluding family planning)

• Notified entities for housing/ community
development
• Corporations for minority community
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interests
• Renovation/repair of notified religious
places
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3. Calculation of Qualifying Limit (for Categories III & IV):

a. Adjusted Total Income Calculation: Gross total income minus deductions (except
Section 80G), short-term capital gains (u/s 111A) and long-term capital gains.
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b. Qualifying Limit: 10% of Adjusted Total Income

c. If the donation falls under category IV, then it’s treatment would be as follows:
i. Suppose Actual Donation = ₹1,00,000
ii. Qualifying Limit = ₹80,000
iii. Donation allowed u/s 80G = 50% of (Lower of Actual Donation or Qualifying
Limit). Therefore, donation allowed u/s 80G = 50% of ₹80,000 = ₹40,000.

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 d. Deduction Adjustment: Deductions for 100% deductible donations are prioritized; 50%
of the remaining amount is eligible under Section 80G.
4. Notes:
a. No deduction shall be allowed for donation in excess of ₹2,000, if paid in cash.
b. In case of individuals, HUF, AoP (other than a cooperative society) or BoI or an artificial
juridical person, deduction would be available only if they exercise the option of
shifting out of the default tax regime provided under section 115BAC(1A).

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Deduction in Respect of Rent Paid [Section 80GG]
Criteria Details
Eligible Individual not in receipt of house rent allowance
Assessee

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Eligible Rent paid for residential accommodation
Payments
Permissible Least of the following is allowable as deduction:
Deduction a. 25% of total income;

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b. Rent paid – 10% of total income;
c. ₹5,000 per month
No deduction if any residential accommodation is owned by the assessee/his
spouse/minor child/HUF at the place where he ordinarily resides or performs the
duties of his office or employment or carries on his business or profession.
Condition for Deduction would be available only if the individual exercises the option of shifting
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Deduction out of the default tax regime provided under section 115BAC(1A).

Deduction in Respect of Donations for Scientific Research and Rural

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Development [Section 80GGA]

Criteria Details
Eligible Any assessee not having income chargeable under the head “Profits and gains of
Assessee business or profession”
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Eligible Donations for scientific research and rural development

Payments
Permissible Actual donation;
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Deduction No deduction shall be allowed for donation in excess of ₹2,000, if paid in cash.
Condition for Deduction would be available to individual, HUF, AoP (other than a co-operative
Deduction society) or BoI or an artificial juridical person only if they exercise the option of
shifting out of the default tax regime provided under section 115BAC(1A).
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Deduction in Respect of Contributions Given by Companies to Political

Parties [Section 80GGB]
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Criteria Details
Eligible Assessee Indian company (not opting for section 115BAA/ 115BAB)
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Eligible Payments Contributions to political parties: Any sum contributed by it to a registered

political party or an electoral trust.
Permissible Actual contribution (otherwise than by way of cash)
Deduction

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 Deduction in Respect of Contributions Given by Any Person to Political
Parties [Section 80GGC]
Criteria Details
Eligible Any person, other than local authority and an artificial juridical person funded by
Assessee the Government
Eligible Contributions to political parties: Amount contributed to a registered political
Payments party or an electoral trust.

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Permissible Actual contribution (otherwise than by way of cash)
Deduction
Condition for An individual, HUF, AoP (other than a co-operative society) or BoI would be
Deduction eligible for deduction only if the assessee exercises the option of shifting out of
the default tax regime provided under section 115BAC(1A).

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Deductions in Respect of Certain Incomes
As per section 80AC, furnishing return of income on or before due date is mandatory for claiming

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deduction in respect of certain incomes. Three sections are there in our syllabus: 80JJAA, 80QQB,
80RRB.

Deduction in Respect of Employment of New Employees [Section

80JJAA]
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Criteria Details
Amount and • If a taxpayer falls under Section 44AB and his gross total income
Duration of includes profits from business, he can claim a deduction equal to 30%
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Deduction of the additional employee cost incurred during the previous year.
• This deduction is available for three assessment years, including the
year relevant to the previous year in which new employees are hired.
Conditions for • The business should not be created by splitting up an existing business
Eligibility or through the reconstruction of an existing business.
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• The taxpayer should not acquire the business through a transfer from
another person or as a result of business reorganization.
• An accountant's report with specific details must be submitted before
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September 30 of the assessment year.

Explanation of • Additional Employee Cost: Total payments to new employees hired
Key Terms during the previous year.
• Specific electronic means include account payee cheque, bank draft, or
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electronic clearing system through a bank account.

• Additional Employee:
o Someone hired during the previous year, increasing the total
number of employees.
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o Exclusions include:
▪ employees earning over ₹25,000 per month,
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▪ those whose pension fund contributions are fully

covered by the government,
▪ employees not participating in a recognized provident
fund, and
▪ employees hired for less than 240 days (or 150 days in
the business of manufacturing of apparel or footwear
or leather products)

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 • Emoluments: Payments to an employee excluding contributions to
pension/provident fund and one-time payments at retirement.
Applicability of The deduction under Section 80JJAA is available to all taxpayers, regardless of
Deduction the tax regime they follow.

Deduction in Respect of Royalty Income, etc., of Authors of Certain

Books Other Than Textbooks [Section 80QQB]

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Criteria Details
Eligible Resident individual, being an author
Assessee
Eligible Royalty income, etc., of authors of certain books other than textbooks:
Income Consideration for assignment or grant of any of his interests in the copyright of

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any book, being a work of literary, artistic or scientific nature or royalty or
copyright fee received as lumpsum or otherwise.
Permissible Income derived in the exercise of profession or ₹3,00,000, whichever is less. In

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Deduction respect of royalty or copyright fee received otherwise than by way of lumpsum,
income to be restricted to 15% of value of books sold during the relevant previous
year.
Condition for Deduction would be available only if the individual exercises the option of shifting
Deduction out of the default tax regime provided under section 115BAC(1A).

Deduction in Respect of Royalty on Patents [Section 80RRB]

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Criteria Details
Eligible Assessee Resident individual, being an author
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Eligible Income Royalty on patents: Any income by way of royalty on patents registered on or
after 1.4.2003
Permissible Whole of such income or ₹3,00,000, whichever is less.
Deduction
Condition for Deduction would be available only if the individual exercises the option of
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Deduction shifting out of the default tax regime provided under section 115BAC(1A).

Deduction in Respect of Interest on Deposits in Savings Accounts

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[Section 80TTA]
Criteria Details
Eligible Assessee Individual or a HUF, other than a resident senior citizen
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Eligible Income Interest on deposits in savings account with a bank, a co-operative society or a
post office (not being time deposits, which are repayable on expiry of fixed
periods)
Permissible Actual interest subject to a maximum of ₹10,000.
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Deduction
Condition for Deduction would be available only if the individual/HUF exercises the option of
Deduction shifting out of the default tax regime provided under section 115BAC(1A).
C

Deduction in Respect of Interest on Deposits in Case of Senior Citizens

[Section 80TTB]
Criteria Details

CA NISHANT KUMAR 10
 Eligible Assessee Resident senior citizen (i.e., an individual of the age of 60 years or more at any
time during the previous year)
Eligible Income Interest on deposits (both fixed deposits and saving accounts) with banking
company, cooperative society engaged in the business of banking or a post
office.
Permissible Actual interest or ₹50,000, whichever is less.
Deduction
Condition for Deduction would be available only if the individual exercises the option of

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Deduction shifting out of the default tax regime provided under section 115BAC(1A).

Deduction in the Case of a Person with Disability [Section 80U]

Criteria Details
Eligible Assessee Resident Individual

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Condition for Deduction in case of a person with disability: Any person, who is certified by the
Deduction medical authority to be a person with disability.
Permissible • Flat deduction of ₹75,000, in case of a person with disability.

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Deduction • Flat deduction of ₹1,25,000, in case of a person with severe disability
(80% or more disability).
Condition for Deduction would be available only if the individual exercises the option of
Deduction shifting out of the default tax regime provided under section 115BAC(1A).

Deduction u/s 10AA

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Criteria Details
Eligible An assessee who derives profits from an undertaking, being a Unit established in
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Assessee SEZ, which begins to manufacture or produce articles or things or provide any
service on or after 1.4.2005 but before 1.4.2021
Eligible Profits derived from exports of such articles or things or export of services
Income (including computer software).
Conditions for • Proceeds to be received in convertible foreign exchange within 6 months
Deduction from the end of the P.Y. or such further period as the competent authority
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may allow.
• The report of chartered accountant certifying that the deduction has been
correctly claimed should be furnished before the date specified in section
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44AB.
• Return of income to be filed on or before due date u/s 139(1).
Permissible • Deduction for 15 consecutive assessment years.
• Amount of deduction =
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Deduction
𝐸𝑥𝑝𝑜𝑟𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑜𝑓 𝑈𝑛𝑖𝑡 𝑖𝑛 𝑆𝐸𝑍
𝑃𝑟𝑜𝑓𝑖𝑡𝑠 𝑜𝑓 𝑈𝑛𝑖𝑡 𝑖𝑛 𝑆𝐸𝑍 ×
𝑇𝑜𝑡𝑎𝑙 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑜𝑓 𝑈𝑛𝑖𝑡 𝑖𝑛 𝑆𝐸𝑍
• Years 1 to 5 - 100% of such profits would be exempt in the first five years;
A

• Years 6 to 10 - 50% of such profits in the next five years; and

• Years 11 to 15 - In the last five years, 50% of such profits subject to transfer
to SEZ Re-investment Reserve Account.
C

Condition for In case of individuals, HUF, AoP (other than a cooperative society), BoI or an
Deduction artificial juridical person, deduction would be available only if they exercise the
option of shifting out of the default tax regime provided u/s 115BAC(1A).

CA NISHANT KUMAR 11
 Exemptions Under Section 10
Section Provision
10(4(ii) Income by way of interest on moneys standing to his credit in a Non-resident (External)
Account (NRE A/c), is exempt in the hands of an individual, being a person resident
outside India as per the FEMA, 1999 or in the hands of an individual who has been
permitted by the RBI to maintain such account.
10(10BC) Compensation received or receivable from the Central Government, State Government

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or local authority by an individual or his legal heir on account of any disaster is exempt
except to the extent of loss or damage allowed as deduction under the Act
10(16) The value of scholarship granted to meet the cost of education would be exempt from
tax in the hands of the recipient irrespective of the amount or source of scholarship.
10(17) Daily allowance and Constituency allowance received by any Member of Parliament or
of State Legislatures is exempt

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10(17A) Payment, whether in cash or kind, in pursuance of an award instituted in public interest
by the Govt or reward by the Govt. for approved purposes is exempt.
10(10A) Any commuted pension received by an individual from a fund set up by LIC of India or

KU
any other insurer under a pension scheme, approved by Controller of Insurance or IRDA
of India will be exempted.
Important Questions: Questions 5, 9, 14, 15, 17, 18, 24, 25, 26, 31, 32, 33, 38
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AN
H
IS
N
A
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CA NISHANT KUMAR 12