Incomes not included in total income - Section 10

In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included-

(1) agricultural income;

(2) ²⁴⁶[subject to the provisions of sub-section (2) of section 64], any sum received by an individual as a member of a Hindu undivided family, where such sum has been paid out of the income of the family, or, in the case of any impartibly estate, where such sum has been paid out of the income of the estate belonging to the family;

²⁴⁷[(2A) in the case of a person being a partner of a firm which is separately assessed as such, his share in the total income of the firm.

Explanation : For the purposes of this clause, the share of a partner in the total income of a firm separately assessed as such shall, notwithstanding anything contained in any other law, be an amount which bears to the total income of the firm the same proportion as the amount of his share in the profits of the firm in accordance with the partnership deed bears to such profits;]

¹[(3) Omitted by the Finance Act, 2002, with effect from 1st April, 2003];

²⁴⁸[(4) (i) in the case of a non-resident, any income by way of interest on such securities or bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf, including income by way of premium on the redemption of such bonds :

²[Provided that the Central Government shall not specify, for the purposes of this sub-clause, such securities or bonds on or after the 1st day of June, 2002;]

(ii) in the case of an individual, any income by way of interest on moneys standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with ¹⁸⁷[the Foreign Exchange Management Act, 1999 (42 of 1999)], and the rules made there under :

Provided that such individual is a person resident outside India as defined in ²⁰²[clause (w)] of section 2 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account :]

³[Second proviso omitted by the Finance Act, 2005, with effect from 1st April, 2006.]

²⁵⁰[(4B) in the case of an individual, being a citizen of India or a person of Indian origin, who is a non-resident, any income from interest on such ⁴[savings certificates issued before the 1st day of June, 2002] by the Central Government as that Government may, by notification in the Official Gazette, specify in this behalf :

Provided that the individual has subscribed to such certificates in convertible foreign exchange remitted from a country outside India in accordance with the provisions of ¹⁸⁷[the Foreign Exchange Management Act, 1999 (42 of 1999)], and any rules made there under.

Explanation : For the purposes of this clause, -