Page 103 - DCOM301_INCOME_TAX_LAWS_I

Income Tax Laws – I

Notes 32. Income of a regimental fund or non-public fund [Section 10(23AA)]: Income derived by
any Regimental Fund or Non-Public Fund established by the armed forces of the Union
for the welfare of their past and present members and their dependents will be exempt
from tax.
33. Income of a mutual fund [Section 10(23D)]: Subject to the provisions of Chapter XIIE any
income of a Mutual Fund set up by a public sector bank or a public financial institution or
authorised by the Securities and Exchange Board of India or the Reserve Bank of India is
exempt from tax. This exemption is subject to such conditions as the Central Government
may, by notification in the Official Gazette, specify in this behalf. However, these conditions
are not applicable in case of a Mutual Fund is registered under the SEBI.
34. Income of investor protection fund (Section 23EA): Any income by way of contributions
received from recognized stock exchanges and members thereof, of such Investor Protection
Fund set up by recognised stock exchanges in India, either jointly or separately, as the
Central Government may, by notification in the Official Gazette, specify in this behalf.

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Caution Provided that where any amount standing to the credit of the Fund and not
charged to income-tax during any previous year is shared, either wholly or in part, with
a recognised stock exchange, the whole of the amount so shared shall be deemed to be the
income of the previous year in which such amount is so shared and shall accordingly be
chargeable to income-tax.
35. Income of venture capital company [Section 10(23FB)]: Any income of a venture capital
company or venture capital fund set up to raise funds for investment in a venture capital
undertaking is exempt from the assessment year 2001–02.

Did u know? Venture Capital Company means such company:
(i) Which has been granted a certificate of registration under the Securities and Exchange
Board of India Act, 1992 (15 of 1992), and regulations made thereunder;
(ii) Which fulfils the conditions as may be specified, with the approval of the Central
Government, by the Securities and Exchange Board of India, by notification in the
Official Gazette, in this behalf.

36. Income of a registered trade union [Section 10(24)]: Any income chargeable under the head
‘income from house property’ and income from other sources of a registered Trade Union
within the meaning of the Indian Trade Unions Act, 1926, formed primarily for the purposes
of regulating the relations between workmen and the employers or between the workmen
and the workmen is exempt from income-tax and also of a federation of such unions.
37. Income of minor child [Section 10(32)]: Where the income of an individual includes any
income of his minor child in terms of Section 64(1A), such individual shall be entitled to
exemption of the amount includible under Section 64(1A) of each minor child or ` 1,500 for
each minor child whichever is less.

Task Discuss in a group who is a minor as per Income Tax Act.

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