New Provision
Section 12, IT Act 2025
Replaces (IT Act 1961)
New provision
Chapter
Chapter III — Incomes Not Forming Part of Total Income
Effective From
1 April 2026
Statutory Text — Section 12
n computing the total income of any political party or an electoral trust for a tax year under this Act, any income enumerated in Schedule VIII shall not be included, subject to fulfilment of conditions specified therein. (2) Wherever the conditions referred to in Schedule VIII are not satisfied in any tax year in respect of any income enumerated in the said Schedule, such income shall be charged to tax under this Act for that tax year. (3) The Central Government may make rules or issue notifications for the purposes of this section as specified in Schedule VIII
CHAPTER IV COMPUTATION OF TOTAL INCOME A. —Heads of income Heads of income 13. Sa
Shahi & Co. — Our Understanding
This section falls under Chapter III which lists incomes that are specifically exempt from income tax — the equivalent of Section 10 of the old Income Tax Act, 1961.
Practical Note: Exempt incomes do not form part of total income for tax computation. However, they may still need to be disclosed in the ITR. Always verify eligibility conditions before claiming an exemption.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 12 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to
egazette.gov.in or
incometaxindia.gov.in. This does not constitute legal or tax advice.