Home > Income Tax Act 2025 > Schedule IILast Updated: Oct 08th 2025
"Schedule II" provides for Income Not To Be Included In Total Income. Learn to understand the "Schedule II" as it is, it's help and useful links to follow.
Here onwards, "Act" refers to "Income Tax Act 2025"
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.
Sl No. | Income not to be included in total income | Conditions | |||||||||||||||||||||
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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. |
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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. |
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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. |
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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. |
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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—
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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––
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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; |
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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,––
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.
Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.