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CS Executive · Tax Laws and Practice · Incomes which do not form part of Total Income

Which statement correctly describes the scope of Section 11(3) of the Income-tax Act, 2025?

Section 11(3) provides that persons enumerated in Schedule VII are not chargeable to tax on their total income for a tax year, but only if the conditions specified in that Schedule are fulfilled. If conditions fail, Section 11(4) makes their income taxable for that year.

  1. APersons listed in Schedule VII are not chargeable to tax on total income for a tax year, subject to the specified conditionsCorrect
  2. BPersons listed in Schedule VIII are exempt on all income without conditions
  3. CAny person may claim exemption for any receipt by notification
  4. DOnly individuals listed in Schedule II are exempt from filing returns

Explanation

Section 11(3) covers persons enumerated in Schedule VII, who are not chargeable to tax on total income if the Schedule's conditions are met. Schedule VIII relates to Section 12 (political parties and electoral trusts), and that exclusion is conditional too. If the conditions fail, Section 11(4) taxes their income.

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