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BW Businessworld

Latest Tax Free Incomes

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Business Trust Income
As per section 10 (23FCA) any income of the Business Trust, being a real estate investment trust by way of income from renting or leasing or letting out of any real estate asset owned directly by such business trust. For this purpose real estate assets means properties owned by REIT whether directly or through special purpose vehicle.

Business Trust-Interest Income
As per section 10(23FC) any income of a business trust by way of interest received or receivable from a special purpose vehicle.

Clean Ganga Fund
As per section 1(23C) (iii aaa) any income received by any person on behalf of Clean Ganga Fund is exempted from Income-tax

Core Settlement Guarantee Fund
Any specified income of Core Settlement Guarantee Fund set up by a recognised clearing corporation in accordance with the regulations of the Central Government as notified in the Official Gazette is exempted from Income-tax payment as per section 10 (23EE) of the Income-tax Act 1961

Distribution Income to Unit Holders
The distributed income being the business income of Business Trust will be exempted to the unit holders. However, the exempted income of business trust would be taxable in the hands of the unit holders. Further as per section 10(23FD) any distributed income referred to in section 1154A received by a unit holder from the business trust would be tax exempted but not being the proportion of the income which is of the same nature as the income referred to in clause 10(23FC) of the Income-tax Act.

Income of the Investment Fund
As section 10(23FBA) of the Income-tax Act any income of an investment fund other than the income chargeable under the head “Profits & Gains of Business or Profession” would be exempted from the payment of Income-tax.

Income received by a unit holder of an Investment Fund
Any amount received by a unit holder of an investment fund in respect of income of the said investment fund from the profits and gains of Business or Profession of the said fund.

Swachh Bharat Kosh
As per section 10(23) (iii a) the interest received by any person on behalf of Swachh Bharat Kosh is exempted from Income-tax.

Sukanya Samridhi Account
The Sukanya Samridhi Account opened in the name of the minor girl child provides for interest payment to the girl child in whose name the account is opened @ 9.1 percent. The said interest is tax free in terms of section 10(11A) of the Income-tax Act, 1961.


The author, Subhash Lakhotia, is Tax and Investment Consultant
[email protected]