1.

b Allowances available to different categories of Tax Payers

[AY 2018-19]

S. No. Section Particulars Limit of Exemption

exemption available to
A. Under the head Salaries
1. 10(7) Any allowance or Entire Amount Individual-
perquisite paid or allowed Salaried
by Government to its Employee (being
employees posted outside a citizen of India)
India
2. - Allowances to Judges of Exempt, subject to Individual -
High Court/Supreme Court certain conditions. Judges of High
Court/Supreme
Court
3. - Compensatory allowance Fully Exempt Individual -
received by a Judge under Judges
article 222(2) of the
Constitution
4. - Salary and allowances Fully Exempt Individual -
received by a teacher Teacher from
/professor from SAARC SAARC member
member state (Subject to State
certain conditions).
5. 10(45) Following allowances and Fully Exempt Individual -
perquisites given to serving Chairman/Membe
Chairman/Member of r of UPSC
UPSC is exempt from tax:

a) Value of rent free official

residence

b) Value of conveyance
facilities including
transport allowance

c) Sumptuary allowance

d) Leave travel concession

6. 10(45) Allowances to Retired Exempt subject to Individual -
Chairman/Members of maximum of Rs. Retired
UPSC 14,000 per month Chairman/Membe
for defraying the r of UPSC
 services of an
orderly and for
meeting expenses
incurred towards
secretarial
assistant on
contract basis.
7. - Allowances paid by the Fully Exempt Individual -
UNO to its employees Individual - Employees of
Government UNO
employee
8. 16 (ii) Entertainment Allowance Least of the Individual -
received by the following is Government
Government employees exempt from tax: Employee
(Fully taxable in case of
other employees) a) Rs 5,000

b) 1/5th of salary
(excluding any
allowance,
benefits or other
perquisite)

c) Actual
entertainment
allowance
received
9. 10(13A) House Rent Allowance Least of the Individual -
(Sec. 10(13A) & Rule 2A) following is Salaried employee
exempt:

a) Actual HRA
Received

b) 40% of Salary
(50%, if house
situated in
Mumbai, Calcutta,
Delhi or Madras)

c) Rent paid
minus 10% of
salary

* Salary= Basic +
 DA (if part of
retirement benefit)
+ Turnover based
Commission

Note:

i. Fully Taxable,
if HRA is received
by an employee
who is living in
his own house or
if he does not pay
any rent

ii. It is mandatory
for employee to
report PAN of the
landlord to the
employer if rent
paid is more than
Rs. 1,00,000
[Circular No. 08
/2013 dated 10th
October, 2013].
10. 10(14) Children Education Up to Rs. 100 per Individual -
Allowance month per child Salaried employee
up to a maximum
of 2 children is
exempt
11. 10(14) Hostel Expenditure Up to Rs. 300 per Individual -
Allowance month per child Salaried employee
up to a maximum
of 2 children is
exempt
12. 10(14) Transport Allowance is Up to Rs. 1,600 Individual -
granted to an employee to per month (Rs. Salaried employee
meet expenditure on 3,200 per month
commuting between place for blind, deaf,
of residence and place of dumb and
duty handicapped
employees) is
exempt
13. Sec. 10(14) Allowance granted to an Amount of Individual -
employee working in any exemption shall Salaried employee
 transport business to meet be lower of
his personal expenditure following:
during his duty performed
in the course of running of a) 70% of such
such transport from one allowance; or
place to another place
provided employee is not in b) Rs. 10,000 per
receipt of daily allowance. month.
14. 10(14) Conveyance Allowance Exempt to the Individual -
granted to meet the extent of Salaried employee
expenditure on conveyance expenditure
in performance of duties of incurred for
an office official purposes
15. 10(14) Any Allowance to meet the Exempt to the Individual -
cost of travel on tour or on extent of Salaried employee
transfer expenditure
incurred for
official purposes
16. 10(14) Daily Allowance to meet Exempt to the Individual -
the ordinary daily charges extent of Salaried employee
incurred by an employee on expenditure
account of absence from his incurred for
normal place of duty official purposes
17. 10(14) Helper/Assistant Allowance Exempt to the Individual -
extent of Salaried employee
expenditure
incurred for
official purposes
1. 10(14) Research Allowance Exempt to the Individual -
granted for encouraging the extent of Salaried employee
academic research and expenditure
other professional pursuits incurred for
official purposes
2. 10(14) Uniform Allowance Exempt to the Individual -
extent of Salaried employee
expenditure
incurred for
official purposes
3. Sec. 10(14) Special compensatory Amount exempt Individual -
Allowance (Hilly Areas) from tax varies Salaried employee
(Subject to certain from Rs. 300 per
conditions and locations) month to Rs.
7,000 per month.
4. Sec. 10(14) read Border area allowance Amount exempt Individual -
with Rule 2BB Remote Locality or from tax varies Salaried employee
allowance or Disturbed from Rs. 200 per
Area allowance or Difficult month to Rs.
Area Allowance (Subject to 1,300 per month.
certain conditions and
locations)
5. Sec. 10(14) Tribal area allowance in (a) Up to Rs. 200 per Individual -
Madhya Pradesh (b) Tamil month Salaried employee
Nadu (c) Uttar Pradesh (d)
Karnataka (e) Tripura (f)
Assam (g) West Bengal (h)
Bihar (i) Orissa
6. Sec. 10(14) Compensatory Field Area Up to Rs. 2,600 Individual -
Allowance. If this per month Salaried employee
exemption is taken,
employee cannot claim any
exemption in respect of
border area allowance
(Subject to certain
conditions and locations)
7. Sec. 10(14) Compensatory Modified Up to Rs. 1,000 Individual -
Area Allowance. If this per month Salaried employee
exemption is taken,
employee cannot claim any
exemption in respect of
border area allowance
(Subject to certain
conditions and locations)
8. Sec. 10(14) Counter Insurgency Up to Rs. 3,900 Individual -
Allowance if this per month Members of
exemption is taken, Armed Forces
employee cannot claim any
exemption in respect of
border area allowance
(Subject to certain
conditions and locations)
9. Sec. 10(14) Underground Allowance is Up to Rs. 800 per Individual -
granted to employees month Salaried employee
working in uncongenial,
unnatural climate in
underground mines
10. Sec. 10(14) High Altitude Allowance is a) Up to Rs. Individual -
granted to armed forces 1,060 per month Members of
 operating in high altitude (for altitude of Armed Forces
areas (Subject to certain 9,000 to 15,000
conditions and locations) feet)

b) Up to Rs.
1,600 per month
(for altitude above
15,000 feet)
11. Sec. 10(14) Highly active field area Up to Rs. 4,200 Individual -
allowance is granted to per month Members of
members of armed forces Armed Forces
(Subject to certain
conditions and locations)
12. Sec. 10(14) Island Duty Allowance is Up to Rs. 3,250 Individual -
granted to members of per month Members of
armed forces in Andaman Armed Forces
and Nicobar and
Lakshadweep group of
Island (Subject to certain
conditions and locations)
13. - City Compensatory Fully Taxable Individual -
Allowance Salaried employee
14. - Fixed Medical Allowance Fully Taxable Individual -
Salaried employee
15. - Tiffin/Lunch/Dinner/Refres Fully Taxable Individual -
hment Allowance Salaried employee
16. - Servant Allowance Fully Taxable Individual -
Salaried employee
17. - Dearness Allowance Fully Taxable Individual -
Salaried employee
18. - Project Allowance Fully Taxable Individual -
Salaried employee
19. - Overtime Allowance Fully Taxable Individual -
Salaried employee
20. - Telephone Allowance Fully Taxable Individual -
Salaried employee
21. - Holiday Allowance Fully Taxable Individual -
Salaried employee
22. - Any Other Cash Allowance Fully Taxable Individual -
Salaried employee
B. Under the head Income from house property
1. First proviso to Municipal tax levied by Amount actually All assessee
 section 23(1) local authority and borne paid during the
by owner in respect of relevant previous
house property year
1A. 23(5) No Notional income for Any building and All assessee
house property held as land appurtenant
stock-in-trade thereto held as
stock-in-trade
which is not let
during the whole
or any part of the
previous year.

Annual value of
such property for
the period upto
one year from the
end of the
financial year in
which the
certificate of
completion of
construction of the
property is
obtained from the
competent
authority, shall be
taken to be Nil.
2. 24(a) Standard Deduction 30% of the All assessee
Annual Value
(Gross Annual
Value- Municipal
Taxes)
3. 24(b) Interest incurred on Interest on All assessee
borrowed capital borrowed capital
is allowed as
deduction from
income from
house property as
under:

a) Up to Rs.
2,00,000 (if
amount is
borrowed for
construction/acqui
 sition of self-
occupied house
property on or
after 01-04-1999),
subject to certain
other conditions

b) Up to Rs.
30,000 (if amount
is borrowed for
reconstruction,
repair or renewals
of self-occupied
house property)

c) Actual amount
of interest paid or
payable during the
year (in case of
let-out property)

d) Pre-
construction
period interest is
allowed in 5
annual equal
installments
(Subject to certain
conditions)
4. Section 25A Standard Deduction from 30% of arrears of All assessee
arrears of rent or unrealized rent or unrealized
rent received subsequently rent.
C. Under the head Profits and gains from business or profession
1. 32(1) Depreciation in respect of: Depreciation shall Taxpayer engaged
be allowed at in business of
i) Tangible assets prescribed generation or
(buildings, machinery, percentage on generation and
plant or furniture); actual cost of an distribution of
asset. power.
ii) Intangible Assets (know-
how, patents, copyrights, However, if asset Note:
trademarks, licenses, is acquired and
franchises, or any other put to use for less Taxpayer engaged
business or commercial than 180 days in business of
rights of similar nature) during the generation or
 previous year, the generation and
deduction shall be distribution of
restricted to 50% power have the
of depreciation option to claim
computed above. depreciation either
on straight line
basis or written
down value basis.
2. 32(1) Depreciation in respect of: Depreciation shall All assessees
be allowed at
i) Tangible assets prescribed
(buildings, machinery, percentage on
plant or furniture); written down
value of each
ii) Intangible Assets (know- block of asset (as
how, patents, copyrights, per WDV
trademarks, licenses, method).
franchises, or any other
business or commercial However, if asset
rights of similar nature) is acquired and
put to use for less
than 180 days
during the
previous year, the
deduction shall be
restricted to 50%
of depreciation
computed above.
3. 32(1)(iia) Additional depreciation on Additional All taxpayers
new plant and machinery depreciation to be engaged in:
(other than ships, aircraft, allowed at 20 %
office appliances, second of actual cost of a) manufacture or
hand plant or machinery, new plant and production of any
etc.) shall be allowed machinery. article or thing; or
subject to certain
conditions. However, if an b) generation or
asset is acquired transmission or
and put to use for distribution of
less than 180 days power (if taxpayer
during the not claiming
previous year, depreciation on
50% of additional basis of straight
depreciation shall line method)
be allowed in year
of acquisition and
 balance 50%
would be allowed
in the next year.
4. Proviso to Section Additional depreciation on Additional All taxpayers
32(1)(iia) new plant and machinery depreciation to be which set up an
(other than ships, aircraft, allowed at 35 % undertaking or
vehicle, office appliances, of actual cost of enterprise for
second hand plant or new plant and production or
machinery, etc.) shall be machinery. manufacture of
allowed subject to certain any article or
conditions. However, if an thing in any
asset is acquired notified backward
and put to use for area in the state of
less than one 180 Andhra Pradesh,
days during the Bihar, Telangana
previous year, or West Bengal.
50% of additional
depreciation shall Note:
be allowed in year
of acquisition and 1. Manufacturing
balance 50% in unit should be set-
next year. up on or after
April 1, 2015.

2. New plant and

5. 32AC Deduction under section
32AC is available if actual
cost of new plant and
machinery acquired and
installed by a
manufacturing company
after 31-3-2013 but before
1-4-2015 exceeds Rs.
25/100 Crores, as the case
may be.(Subject to certain
conditions)
6. 32AD Investment allowance for
investment in new plant
and machinery (other than
machinery should
be acquired and
installed on or
after April 1, 2015
but before April 1,
2020.
15% of actual cost Company engaged
of new asset in business or
acquired and manufacturing or
installed production of any
article or thing
Investment All taxpayers who
allowance to be acquire new plant
allowed at 15 % and machinery for
 ships, aircraft, vehicle,
office appliances, second
hand plant or machinery,
etc.) if manufacturing unit
is set-up in notified
backward area in the State
of Andhra Pradesh, Bihar,
Telangana or West Bengal
(subject to certain
conditions)
of actual cost of purpose of
new plant and setting-up
machinery in the manufacturing
year in which such unit in notified
asset is installed. backward areas in
the State of
Andhra Pradesh,
Bihar, Telangana
or West Bengal
Note:

1) New asset
should be
acquired and
installed on or
after April 1, 2015
but before April 1,
2020.

2) Manufacturing
unit should be set-
up on or after
April 1, 2015.

3) Deduction shall
be allowed under
Section 32AD in
addition to
deduction under
Section 32AC if
assessee fulfils the
specified
conditions.
7. 33AB Amount deposited in Deduction shall be All assessee
Tea/Coffee/Rubber lower of engaged in
Development Account by following: business of
assessee engaged in growing and
business of growing and a) Amount manufacturing
manufacturing deposited in tea/Coffee/Rubber
tea/Coffee/Rubber in India account with
National Bank for
Agricultural and
Rural
Development
(NABARD) or in
 Deposit Account
of Tea Board,
Coffee Board or
Rubber Board in
accordance with
approved scheme;
or

b) 40% of profits
from such
business before
making any
deduction under
section 33AB and
before adjusting
any brought
forward loss.

(Subject to
certain conditions)
8. 33ABA Amount deposited in Deduction shall be All assessee
Special Account with lower of engaged in
SBI/Site Restoration following: business of
Account by assessee prospecting for, or
carrying on business of a) Amount extraction or
prospecting for, or deposited in production of,
extraction or production of, Special Account petroleum or
petroleum or natural gas or with SBI/Site natural gas or both
both in India Restoration in India
Account; or

b) 20% of profits
from such
business before
making any
deduction under
section 33ABA
and before
adjusting any
brought forward
loss.

(Subject to certain
conditions)
9. 35(1)(i) Revenue expenditure on Entire amount All assessee
 scientific research incurred on
pertaining to business of scientific research
assessee is allowed as is allowed as
deduction (Subject to deduction.
certain conditions).
Expenditure on
scientific research
within 3 years
before
commencement of
business (in the
nature of purchase
of materials and
salary of
employees other
than perquisite) is
allowed as
deduction in the
year of
commencement of
business to the
extent certified by
prescribed
authority.
10. 35(1)(ii) Contribution to approved 175% of sum paid All assessee
research association, to such
university, college or other association,
institution to be used for university,
scientific research shall be college, or other
allowed as deduction institution is
(Subject to certain allowed as
conditions) deduction.

150% of sum paid

to such
association,
university, college
or other institution
is allowed as
deduction
(applicable from
AY 2018-19)

Note:- From the

AY beginning on
or after the 1st day
 of April, 2021, the
deduction shall be
equal to the sum
so paid.
11. 35(1)(iia) Contribution to an 125% of sum paid All assessee
approved company to the company is
registered in India to be allowed as
used for the purpose of deduction
scientific research is
allowed as deduction Entire sum paid to
(Subject to certain the company is
conditions) allowed as
deduction
(applicable from
AY 2018-19)
12. 35(1)(iii) Contribution to approved 125% of sum paid All assessee
research association, to such
university, college or other association,
institution with objects of university,
undertaking statistical college, or other
research or research in institution is
social sciences shall be allowed as
allowed as deduction deduction
(Subject to certain
conditions) Entire sum paid to
such association,
university, college
or other institution
is allowed as
deduction
(applicable from
AY 2018-19)

13. 35(1)(iv) read Capital expenditure Entire capital All assessee

with 35(2) incurred during the year on expenditure
scientific research relating incurred on
to the business carried on scientific research
by the assessee is allowed is allowed as
as deduction (Subject to deduction.
certain conditions)
Capital
expenditure
incurred within 3
years before
 commencement of
business is
allowed as
deduction in the
year of
commencement of
business.

Note:

i. Capital
expenditure
excludes land and
any interest in
land;

ii. No
depreciation shall
be allowed on
such assets.
14. 35(2AA) Payment to a National 200% of payment All assessee
Laboratory or University or is allowed as
an Indian Institute of deduction (Subject
Technology or a specified to certain
person is allowed as conditions).
deduction.
150% of payment
The payment should be is allowed as
made with the specified deduction
direction that the sum shall (applicable from
be used in a scientific AY 2018-19)
research undertaken under
an approved programme. Note:- From the
AY beginning on
or after the 1st day
of April, 2021, the
deduction shall be
equal to the sum
so paid.
15. 35(2AB) Any expenditure incurred 200% of Company engaged
by a company on scientific expenditure so in business of bio-
research (including capital incurred shall be technology or in
expenditure other than on as deduction. any business of
land and building) on in- manufacturing or
house scientific research 150% of production of
 and development facilities expenditure so eligible articles or
as approved by the incurred shall be things
prescribed authorities shall allowed as
be allowed as deduction deduction
(Subject to certain (applicable from
conditions). AY 2018-19)

Expenditure on scientific Note:

research in relation to Drug
and Pharmaceuticals shall i. Deduction
include expenses incurred shall be allowed if
on clinical trials, obtaining company enters
approvals from authorities into an agreement
and for filing an application with the
for patent. prescribed
authority for co-
operation in such
research and
development and
fulfils conditions
with regard to
maintenance of
accounts and audit
thereof and
furnishing of
reports in such
manner as may be
prescribed.

ii. From the AY

beginning on or
after the 1st day of
April, 2021, the
deduction shall be
equal to the
expenditure so
incurred.
16. 35AD Deduction in respect of 150% of capital All assessee
expenditure on specified expenditure
businesses, as under: incurred for the
purpose of
a) Setting up and operating business is
a cold chain facility allowed as
deduction
b) Setting up and operating provided the
a warehousing facility for specified business
 storage of agricultural has commenced
produce its operation on or
after 01-04-2012.
c) Building and operating,
anywhere in India, a 100% of capital
hospital with at least 100 expenditure will
beds for patients be allowed to be
deducted from the
d) Developing and building assessment year
a housing project under a 2018-19 onwards
notified scheme for
affordable housing Note: If such
specified
e) Production of fertilizer in businesses
India commence
operations on or
(Subject to certain before 31-03-2012
conditions) but after
prescribed dates,
deduction shall be
limited to 100% of
capital
expenditure.

Note: No
deduction of any
capital
expenditure above
Rs 10,000 shall be
allowed where
such expenditure
is incurred in
cash.
17. 35AD Deduction in respect of 100% of capital All assessee
expenditure on specified expenditure
businesses, as under: incurred for the Note: Such
purpose of deduction is
a) Laying and operating a business is available to Indian
cross-country natural gas or allowed as company in case
crude or petroleum oil deduction of following
pipeline network for provided specified business, namely;-
distribution, including businesses
storage facilities being an commence (i) Business of
integral part of such operations on or laying and
network; after the operating a cross-
prescribed dates. country natural
 b) Building and operating, gas or crude or
anywhere in India, a hotel petroleum oil
of two-star or above pipeline network
category;
(ii) Developing or
c) Developing and building maintaining and
a housing project under a operating or
scheme for slum developing,
redevelopment or maintaining and
rehabilitation operating a new
infrastructure
d) Setting up and operating facility.
an inland container depot or
a container freight station No deduction of
any capital
e) Bee-keeping and expenditure shall
production of honey and be allowed in
beeswax respect of which
cash payment is
f) Setting up and operating made above Rs.
a warehousing facility for 10,000.
storage of sugar

g) Laying and operating a

slurry pipeline for the
transportation of iron ore

h) Setting up and operating

a semi-conductor wafer
fabrication manufacturing
unit

i) Developing or
maintaining and operating
or developing , maintaining
and operating a new
infrastructure facility

(Subject to certain
conditions)
18. 35CCC Expenditure (not being cost 150% of the All assessee
of land/building) incurred expenditure
on notified agricultural (Subject to certain
extension project for the conditions)
purpose of training,
educating and guiding the Note:- 100%
 farmers shall be allowed as
deduction, provided the
expenditure to be incurred
is expected to be more than
Rs. 25 lakhs (Subject to
certain conditions).
19. 35CCD Expenditure incurred by a
company (not being
expenditure in the nature of
cost of any land or
building) on any notified
skill development project is
allowed as deduction
(Subject to certain
conditions).
deduction shall be
allowed from the
1st day of April,
2021
150% of the Company engaged
expenditure in manufacturing
(Subject to certain of any article or
conditions) providing
specified services
Note: (i) No
deduction shall be
allowed to a
company engaged
in manufacturing
alcoholic spirits or
tobacco products.

(ii) 100%
deduction shall be
allowed for the
AY beginning on
or after 1st day of
April, 2021
D. Under the head Capital Gain
Particul Section Section Section Section Section Section Section Section Section
ars 54 54B 54D 54EC 54EE 54F 54G 54GA 54GB
Eligible Individu Individu Any Any Any Individu Any Any Individu
taxpaye al and al and person person Person al and person person al and
r HUF HUF HUF HUF
Capital Long- Short- Short- Long- Long- Long- Short- Short- Long-
gains term term or term or term term term term or term or term
eligible Long- Long- Long- Long-
for term term term term
exempti
on
Capital Residenti Agricult Compuls Any Any Any long Land, Land, Resident
gains al House ure land ory long- long- term building building ial
arising property used by acquisitio term term asset , plant , plant property
from taxpaye n of land capital capital (other or or (house or
transfer r or by or asset asset than a machin machin a plot of
of his building residenti ery, in ery, in land)
parents forming al house order to order to
 or HUF part of property) shift shift Note:
for industrial provided industri industri
agricult undertaki on date al al Provisio
ure ng of underta underta ns of this
purpose (which transfer king king section
s in last was used taxpayer from from shall not
2 years for does not urban urban apply to
before industrial own area to area to any
its purposes more rural SEZ. transfer
transfer for at than one area. of
least 2 residenti residenti
years al house al
before its property property
acquisitio (except made
n). the new after
house) March
31, 2017.
However
, in case
of an
investme
nt in
eligible
start-up,
the
residenti
al
property
can be
transferr
ed up to
March
31, 2019.
Assets One Agricult Land or Bond Units of One Land, Land, Subscrip
to be residenti ural building of such residenti building building tion in
acquire al house land for NHAI fund as al house , plant , plant equity
d for property (may be shifting or may be property or or shares of
exempti in urban or REC, notified machin machin an
on area or reestablis etc. by ery, in ery, in eligible
rural hing said Central order to order to company
area) industrial Govern shift shift .
undertaki ment to industri industri
ng finance al al Note:
start-ups underta underta
king to king to 1. W.e.f.
rural SEZ. April 1,
area. 2017,
eligible
start-up
is also
included
in
definitio
n of
eligible
company
.

2. The
eligible
company
should
utilize
the
amount
of
subscript
ion for
purchase
of new
assets
(i.e.,
plant and
machiner
y except
vehicle,
office
applianc
es,
compute
r or
compute
r
software
etc.).
However
, In the
case of
eligible
startup,
the new
asset
 shall
include
compute
rs or
compute
r
software.
Time Purchase Within Within 3 Within Within Purchase within 1 Within Investme
limit for : within 2 years years 6 6 : within year 1 year nt by the
acquirin 1 year after from date months months 1 year before before assessee
g the before or date of of receipt from after the before or or 3 or - Before
new 2 years transfer of date of date of within 2 years within 3 due date
assets after date compens transfer transfer years after years for
of ation of after date date of after furnishin
transfer original of transfer date of g of
asset transfer transfer return
Construc under
tion: Construc Sec.
within 3 tion: 139(1).
years within 3
after date years Investme
of after date nt by the
transfer of company
transfer - within
1 year
from
date of
subscript
ion.
Exempti Investme Investm Investme Invest Investm Investme Investm Investm Investme
on nt in new ent in nt in new ment in ent in nt in new ent in ent in nt in new
Amount assets or agricult assets or new new assets X new new assets X
capital ural capital assets assets or capital assets assets capital
gain, land or gain, or capital gain/net or or gain/net
whichev capital whicheve capital gains, consider capital capital consider
er is gain, r is lower gains, whichev ation gain, gain, ation
lower whichev whiche er is whiche whiche
er is ver is lower, ver is ver is
lower lower, however lower lower
howeve , subject
r, to Rs.
subject 50
to Rs. lakhs.
50
lakhs
 in a
financi
al year.
Withdr If new If new If new If new If new a) If new If new If new If equity
awal of asset is asset is asset is asset is asset is asset is asset is asset is shares in
exempti transferr transferr transferre transfer transferr transferr transfer transfer company
on ed within ed d within red or ed ed within red red or new
3 years within 3 3 years it is within a 3 years within 3 within 3 asset
of its years of of its convert period of years of years of acquired
acquisiti its acquisitio ed into of 3 acquisiti acquisit acquisit by
on acquisiti n money years on, ion ion company
on or a from the is sold or
loan is date of b) if transferr
taken its another ed within
on its acquisiti
residenti a period
securit on. al house of 5
y is years
Note: purchase from
within d within date of
3 years Where 2 years acquisiti
of its assessee of on.
acquisit takes transfer
ion loans or of
advance original
on asset;
security
of such c) if
specifie another
d asset, house is
he shall construct
be ed within
deemed 3 years
to have of
transferr transfer
ed such of
asset on original
the date asset
on
which
such
loan or
advance
is taken.
Deposit Yes Yes Yes No No Yes Yes Yes Yes
in
Capital
gains
deposit
scheme
before
due
date
under
Sec.
139(1)

Capital Gain Account Scheme 1988

a) The scheme is open to all taxpayers, who wish to claim exemption under Sections 54, 54B,
54D, 54F, 54G or 54GB.

b) If taxpayer could not invest the capital gains to acquire new asset before due date of
furnishing of return, the capital gains can be deposited before due date for furnishing of return of
income in deposit account in any branch of a nationalized bank in accordance with Capital Gain
Account Scheme 1988.

E. Under the head Income from other sources

1. 56(2)(vii) Any sum of money or immovable The whole amount Individual
property or movable property received received from specified and HUF
without consideration or for inadequate relatives or in specified
consideration from a relative or member circumstances shall not
of HUF (subject to certain conditions and be included in taxable
circumstances) [on or after 01-10-2009 income.
but before 01-04-2017]
1A. 56(2)(x) Any sum of money or immovable The whole amount Any
property or movable property received received from specified person
without consideration of for inadequate relatives or in specified
consideration from any person. [on or circumstances shall not
after 01-04-2017] be included in taxable
income.
2. 57(iia) Standard Deduction for family pension 33.33% of Family Individual
Pension subject to
maximum of Rs. 15,000

[As amended by Finance Act, 2017]