Section 11
Section 11: incomes not to be included in total income
Section 11 is the umbrella provision for exemptions under the Income-tax Act, 2025. Rather than listing exempt income items directly in the section (as the old "section 10" used to), this Act moves the actual list into Schedules II to VII, and Section 11 is the operative rule that gives those Schedules legal effect - conditional on the taxpayer meeting whatever conditions each Schedule specifies.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
What Section 11 says
Section 11(1): in computing total income for a tax year, any income listed in Schedules II, III, IV, V and VI is not included, subject to the conditions specified in those Schedules.
Section 11(2): if the conditions in the relevant Schedule are not satisfied in a tax year for a particular item of income, that income becomes chargeable to tax for that tax year under the Act.
Section 11(3): the persons listed in Schedule VII are not chargeable to tax on their total income for a tax year, subject to the conditions specified in that Schedule.
Section 11(4): if the conditions in Schedule VII are not satisfied for a person listed in it, that person's income becomes chargeable to tax for that tax year under the Act.
Section 11(5): the Central Government may make rules or issue notifications for the purposes of this section, as specified in Schedules II, III, IV, V, VI and VII.
How this differs from the earlier Act
Under the Income-tax Act, 1961, exempt incomes were listed directly in section 10 with its many sub-clauses. Under this Act, that list has been reorganised into separate Schedules (II to VII), each apparently grouping related categories of exemption, and Section 11 is simply the switch that activates them - subject to whatever conditions each Schedule itself lays down.
This means the specific rupee limits, eligibility conditions, and categories of exempt income are not found in Section 11 itself, but in the text of the relevant Schedule.
Frequently asked questions
Where do I find the actual list of tax-exempt incomes under this Act?
Section 11 itself doesn't list them - it activates Schedules II to VI (for specific exempt income items, each subject to its own conditions) and Schedule VII (for specified exempt persons/entities).
What happens if I don't meet a Schedule's conditions?
Under Section 11(2) and 11(4), if the conditions specified in the relevant Schedule are not satisfied, the income (or the person's income, for Schedule VII cases) becomes taxable for that tax year under the Act.
Related sections
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Talk to our tax team about applicable exemptionsLast updated 9 September 2026