Section 190
Section 190: relief where total income includes income on which no tax is payable
Section 190 opens Chapter XIII (Determination of Tax in Special Cases) with a fairness rule: if an assessee's total income includes some income on which no income-tax is actually payable under the Act, he gets a deduction from his tax bill equal to the tax that would otherwise fall on that income at his average rate.
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.
How the relief works
Where an assessee's total income includes income on which no income-tax is payable under the Act, he is entitled to a deduction from the income-tax chargeable on his total income, of an amount equal to the income-tax calculated at the average rate of income-tax on the amount on which no income-tax is payable.
Frequently asked questions
What relief does Section 190 give?
A deduction from the tax otherwise chargeable on total income, equal to the income-tax calculated at the assessee's average rate of income-tax on the portion of that total income that is itself not chargeable to tax.
Why would tax-free income still be part of 'total income'?
In certain computational situations, income that is ultimately not taxable can still be included in the aggregate total income figure; Section 190 ensures the assessee is not effectively taxed on that portion by giving a corresponding deduction from the tax payable.
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Get help computing your tax with our tax teamLast updated 9 September 2026