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Schedule Schedule VII: Persons Exempt from Tax

The Income-tax Act, 2025Central Act · Act 30 of 2025

SCHEDULE VII

[See section 11]

PERSONS EXEMPT FROM TAX

Any eligible person, mentioned in column B of the Table below, shall not be liable to pay income-tax on the total income for any tax year, subject to the conditions mentioned in column C of the said Table, and the expression used in columns B and C of the said Table, shall have the meanings respectively assigned to them in the Notes below the said Table:

TABLE

(i) applies its income or accumulates it for application, wholly and exclusively to the objects for which it is established; and

(ii) invests its funds and contributions and other sums received by it in the forms or modes specified in section 350;

(a) dealing with and satisfying the need for housing accommodation;

(b) planning, development or improvement of cities, towns and villages;

(c) regulating, or regulating and developing, any activity for the benefit of the general public; or

(d) regulating any matter, for the benefit of the general public, arising out of the object for which it has been created.

Note 1.—For the purposes of Sl. No. 3, the expression "Controller of Insurance" shall have the same meaning as assigned to it in section 2(5B) of the Insurance Act, 1938 (4 of 1938).

Note 2.—For the purposes of Sl. No. 4, the expression "khadi" and "village industries" shall have the meanings respectively assigned to them in the Khadi and Village Industries Commission Act, 1956 (61 of 1956).

Note 3.—For the purposes of Sl. No. 21, the expression "public financial institution" shall have the same meaning as assigned to it in section 2(72) of the Companies Act, 2013 (18 of 2013).

Note 4.—For the purposes of Sl. No. 29,—

(a) "Scheduled Castes" and "Scheduled Tribes" shall have the meanings respectively assigned to them in article 366(24) or (25) of the Constitution;

(b) "backward classes" means such classes of citizens, other than the Scheduled Castes and the Scheduled Tribes, as may be notified by the Central Government or any State Government.

Note 5.—For the purposes of Sl. No. 30, the expression "minority community" means a community notified as such by the Central Government.

Note 6.—For the purposes of Sl. No. 31, the expression "ex-servicemen" means persons—

(i) who have served in any rank, whether as combatant or non-combatant;

(ii) in the armed forces of the Union or armed forces of the Indian States before the commencement of the Constitution (but excluding the Assam Rifles, Defence Security Corps, General Reserve Engineering Force, Lok Sahayak Sena, Jammu and Kashmir Militia and Territorial Army);

(iii) for a continuous period of not less than six months after attestation;

(iv) who have been released, otherwise than by way of dismissal or discharge on account of misconduct or inefficiency; and

(v) includes their wife, children, father, mother, minor brother, widowed daughter and widowed sister, wholly dependent upon such ex- servicemen, immediately before their death or incapacitation, in case of deceased or incapacitated ex-servicemen.

Where this provision sits

ActThe Income-tax Act, 2025
ScheduleSchedule VII
Marginal notePersons Exempt from Tax
JurisdictionCentral
StatusIn force as published by the source

How this provision has been amended

Taken from the footnotes printed with the provision by the source. Where a footnote names the amending instrument, it is quoted as printed.

  • inserted, Act No. 4 of 2026. Ins. by Act No. 4 of 2026, w.e.f. 1-4-2026.

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