Act 2025Sections 11–12

Chapter III of the Income-tax Act, 2025 — Incomes Which Do Not Form Part of Total Income

Two sections that carry the exemptions — but the substance sits in the Schedules, not in the sections.

What this chapter does

The 1961 Act put its exemptions in one long section 10 of the 1961 Act with dozens of clauses. The 2025 Act splits the work: sections 11 and 12 state that certain incomes do not form part of total income, and the actual lists live in Schedules II to VIII. That is a genuine structural change, not a renumbering — an exemption is now found by going to a Schedule, and Schedule V, for instance, is where investment funds, business trusts and their unit holders sit.

What to watch

An exemption argument that cites only the section is incomplete; the condition is almost always in the Schedule.
Political parties and electoral trusts have their own section (12) and their own Schedule (VIII).

The sections in this chapter

2 sections, in the order the Act runs them. 2 have a page of their own.

What this page does not tell you. This page gives the shape of the chapter and the Act's own heading for every section in it. It does not reproduce the text of any section, and a heading is not the provision. Where a section is marked read in full, that page carries the working; everywhere else, read the section itself before relying on anything here.