India - Income Tax Act 2010 - Saarc

1.69 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 10(20)Explanation.—For the purposes of this clause, the expression“family” shall have the meaning assigned to it in the Explanation toclause (5);](18A) 88 [Omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999;]89[(19) family pension received by the widow or children or nominated heirs,as the case may be, of a member of the armed forces (including paramilitaryforces) of the Union, where the death of such member hasoccurred in the course of operational duties, in such circumstancesand subject to such conditions, as may be prescribed 90 ;]91[(19A) the annual value of any one palace in the occupation of a Ruler, beinga palace, the annual value whereof was exempt from income-taxbefore the commencement of the Constitution (Twenty-sixth Amendment)Act, 1971, by virtue of the provisions of the Merged States(Taxation Concessions) Order, 1949, or the Part B States (TaxationConcessions) Order, 1950, or, as the case may be, the Jammu andKashmir (Taxation Concessions) Order, 1958:Provided that for the assessment year commencing on the 1st day ofApril, 1972, the annual value of every such palace in the occupation 92of such Ruler during the relevant previous year shall be exempt fromincome-tax;]93(20) the income of a local authority which is chargeable under the head94[* * *] “Income from house property”, “Capital gains” or “Income fromother sources” or from a trade or business carried on by it whichaccrues or arises from the supply of a commodity or service 95 [(notbeing water or electricity) within its own jurisdictional area or fromthe supply of water or electricity within or outside its own jurisdictionalarea].96[Explanation.—For the purposes of this clause, the expression “localauthority” means—(i) Panchayat as referred to in clause (d) of article 243 of theConstitution 97 ; or88. Prior to its omission, clause (18A) was inserted by the Rulers of Indian States (Abolitionof Privileges) Act, 1972, w.e.f. 9-9-1972.89. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005. Earlier original clause (19) wasomitted by the Rulers of Indian States (Abolition of Privileges) Act, 1972, w.e.f. 2-4-1973.90. See rule 2BBA for prescribed circumstances and conditions.91. Inserted by the Rulers of Indian States (Abolition of Privileges) Act, 1972, w.r.e.f.28-12-1971.92. For the meaning of the term “occupation”, see Taxmann’s Direct Taxes Manual, Vol. 3.93. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.94. ‘ “Interest on securities”, ’ omitted by the Finance Act, 1988, w.e.f. 1-4-1989.95. Substituted for “within its own jurisdictional area” by the Finance (No. 2) Act, 1971, w.e.f.1-4-1972.96. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003.97. See Appendix.