Schedules I – XVI

All 16 Schedules of the Income Tax Act 2025 — exemptions, deductions, depreciation, provident fund rules, minerals, permitted investments, and more. Each Schedule operates as a self-contained rule set referenced from the main Act sections.

How Schedules work: Schedules are integral parts of the Act — not appendices. They have the same legal force as the main sections and are read together with the section that references them. Where a section says "as per Schedule XI" or "subject to Schedule II", the conditions and rules in that Schedule are mandatory and binding.

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Key conditions for eligible investment fund:

• Fund is not resident in India; is resident in a DTAA country or notified territory
• Resident Indian participation ≤ 5% of corpus (checked on 1 April and 1 October)
• Minimum 25 members who are not connected persons
• No single member (with connected persons) holds > 10%; top 10 members collectively < 50%
• Fund does not invest > 25% in any single entity
• Minimum corpus of ₹100 crore (monthly average)
• Fund manager: registered as fund manager / investment advisor; not employee of fund; ≤ 20% profit entitlement
• Fund must submit annual statement within 90 days of tax year end

Key exemptions:

• Sl. 1: Interest on NRE (Non-Resident External) bank account in India — individual NRI
• Sl. 2: Remuneration of embassy / high commission / diplomatic officials (non-citizen) — on reciprocity basis
• Sl. 3: Remuneration of foreign enterprise employee visiting India for ≤ 90 days (employer not engaged in India trade)
• Sl. 4: Salary for services on foreign ship — non-citizen individual with ≤ 90 days stay in India
• Sl. 5: Remuneration of foreign government trainee in India
• Sl. 8: Interest on Offshore Banking Unit (OBU) deposits — non-resident / RNOR, deposit from 1 April 2005
• Sl. 9: Lease rental from cruise ship — foreign company (holding-subsidiary arrangement; until 1 April 2029)
• Sl. 11–13: Crude oil sale income, crude oil storage income — foreign company with CG notification and agreement

Registered political parties and electoral trusts are exempt from income tax on income from house property, capital gains, other sources, and voluntary contributions — subject to strict conditions:

• Books of accounts maintained in manner enabling AO to verify income
• Every voluntary contribution > ₹20,000 (other than electoral bonds): name and address of contributor recorded
• Accounts audited by a Chartered Accountant
• No donation > ₹2,000 received in cash (only cheque, bank draft, or electronic mode)
• Return of income filed on time under Section 263
• Party registered under Section 29A of the Representation of the People Act 1951

A deduction for amounts deposited in a special account (National Bank / deposit account) for replantation, replacement, rejuvenation of tea bushes, rubber plants, coffee plants, or cardamom:

• Deduction: Lower of: (a) amount deposited; (b) 40% of PGBP profits before this deduction
• Assessee must be growing and manufacturing tea, coffee, rubber or cardamom in India
• Deposit must be made within 6 months of tax year end or before ITR due date
• Accounts must be audited
• Assets acquired from development account withdrawn within 8 years — cost relatable to deduction is deemed PGBP income in year of withdrawal
• Notified scheme approved by the relevant Commodity Board (Tea Board, Rubber Board, Coffee Board, Spices Board)

A deduction for petroleum/natural gas companies setting aside funds for eventual site restoration after oil/gas field decommissioning:

• Deduction: Lower of: (a) amount deposited; (b) 20% of PGBP profits before this deduction
• Assessee must carry on petroleum/natural gas business under agreement with Central Government
• Deposit made before end of tax year in special SBI account or site restoration account
• Interest credited to account is also deemed a deposit
• Amounts utilised for site restoration expenses are not allowed as a separate deduction
• If amount withdrawn but not utilised within the tax year, deemed PGBP income for that year
• Assets acquired under scheme and sold within 8 years — cost relatable to deduction is deemed income

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Source: Income Tax Act 2025, Act No. 30 of 2025 — Schedule I (page 617), Schedule II (pages 618–620), Schedule III (pages 621–626), Schedule IV (pages 627–629), Schedule V (pages 630–633), Schedule VI (pages 634–636), Schedule VII (pages 637–640), Schedule VIII (pages 641–642), Schedule IX (pages 642–643), Schedule X (pages 644–645), Schedule XI (pages 646–650), Schedule XII (page 651), Schedule XIII (page 652), Schedule XIV (pages 653), Schedule XV (pages 654–657), Schedule XVI (pages 658–659), as published in the Gazette of India Extraordinary dated 21st August 2025.