Home > Income Tax Act 2025 > Schedule IIILast Updated: Oct 08th 2025
"Schedule III" provides for Income Not To Be Included In Total Income Of Eligible Persons. Learn to understand the "Schedule III" 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 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.
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. |
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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. |
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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. |
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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. |
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11 | Any special allowance from employer. | Any assessee. |
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12 | Any special allowance or benefit to the extent to which such expenses are actually incurred for that purpose. | Any assessee. |
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13 | Any allowance. | Any assessee. |
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14 | Pension received. | An individual who has been in the service of the Central Government or State Government and has been awarded "Param Vir 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. |
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19 | Any income which accrues or arises—
| A member of a Scheduled Tribe,—
| Nil. |
20 | Any income which accrues or arises—
| An individual, being a Sikkimese. | Nil. |
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. |
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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––
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23 | Any income of a research association. | A research association for the time being approved for the purpose of section 45(3)(a). |
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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. |
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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. |
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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. |
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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. |
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29 | Any income, by way of contributions received from a depository. | Any Investor Protection Fund set up as per the regulations by a depository. |
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30 |
| Any Core Settlement Guarantee Fund, set up by a recognised clearing corporation. |
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31 | Any income chargeable under the heads “Income from house property” and “Income from other sources”. |
| Nil. |
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. |
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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—
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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—
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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. |
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—
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—
Note 5.—For the purposes of Sl. No. 21, the expression “concerned Board” means—
Note 6.—For the purposes of Sl. No. 22, the expression “local authority” means—
Note 7.—For the purposes of Sl. No. 25,––
Note 8.—For the purposes of Sl. No. 26,––
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,––
Note 11: For the purposes of Sl. No. 30,––
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