Schedule IV explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Serial numbers 9 to 14 of the Table in Schedule IV to the Income-tax Act, 2025 deal with income of foreign companies and certain other persons that is not included in total income: lease rentals of cruise ships, income of the European Economic Community, income received in India in Indian currency, storage and sale of crude oil, and three serial numbers (13A, 13B and 13C) inserted by the Finance Act, 2026 on contract manufacturing, individuals visiting India for a notified scheme, and procuring data centre services. Serial numbers 1 to 8 are in our note on Schedule IV, serial numbers 1 to 8.
This explanation is as per the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026. Serial numbers 13A, 13B and 13C and Note 3 are printed as inserted by the Finance Act, 2026, with effect from 1 April 2026; Schedule IV is among those amended by section 124 of that Act. Under section 1(3) the Act came into force on the 1st April, 2026, save as otherwise provided. Later amendments, rules and notifications should be checked. For where the earlier Act's provisions on exempt income sit in the 2025 Act, see our mapping note on exemptions and the Schedules.
Schedule IV (brought in by section 11) excludes the income in column B of the eligible persons in column C from total income if the conditions in column D are met. Many rows here turn on notification by the Central Government. Serial number 9 (cruise ship lease rentals) applies to a relevant tax year beginning on or before 1 April 2029. Serial number 13A is available up to the tax year 2030-2031 and serial number 13C up to the tax year ending 31 March 2047. For foreign company and non-resident questions see non-resident tax filing.
Serial number 9: cruise ship lease rentals
| Serial number | Income (column B) | Eligible persons (column C) | Conditions (column D) |
|---|---|---|---|
| 9 | Income from lease rentals, by whatever name called, of cruise ship | Foreign company | (a) Such income is received from a specified company which operates such ship or ships in India; (b) such foreign company and the specified company are subsidiaries of the same holding company; and (c) such income is received or accrues or arises in India for any relevant tax year beginning on or before the 1st April, 2029 |
Note 1 defines the terms for serial number 9:
- "specified company" means any company, other than a domestic company, which operates cruise ships in India and opts to pay tax as per section 61(2) (Table: serial number 2), as printed;
- "holding company", in relation to a foreign company or a specified company, means a company of which such companies are subsidiary companies; and
- "subsidiary company" or "subsidiary", in relation to a holding company, means a company in which the holding company exercises or controls more than one-half of the total share capital, either at its own or together with one or more of its subsidiary companies.
All three conditions (a), (b) and (c) must be met.
Serial number 10: the European Economic Community
| Serial number | Income (column B) | Eligible persons (column C) | Conditions (column D) |
|---|---|---|---|
| 10 | Any income derived in India by way of interest, dividends or capital gains from investments made | The European Economic Community | Such investments are made out of its funds under such scheme as the Central Government may, by notification, specify |
Note 2 says "European Economic Community" means the European Economic Community established by the Treaty of Rome of 25th March, 1957. The scheme notified is not in the text consulted.
Serial numbers 11 to 13: crude oil
| Serial number | Income (column B) | Eligible persons (column C) | Conditions (column D) |
|---|---|---|---|
| 11 | Any income received in India in Indian currency | A foreign company | (a) Such income is on account of sale of crude oil or any other goods or rendering of services, as may be notified by the Central Government, to any person in India; (b) receipt of such income in India by the foreign company is pursuant to an agreement or arrangement entered into by the Central Government or approved by the Central Government; (c) such foreign company and the agreement or arrangement are notified by the Central Government, having regard to the national interest; and (d) such foreign company is not engaged in any activity in India, other than activity resulting in such income |
| 12 | Any income accruing or arising on account of storage of crude oil in a facility in India and sale of such crude oil to any person resident in India | A foreign company | (a) Such storage and sale by the foreign company is pursuant to an agreement or arrangement entered into by the Central Government or approved by the Central Government; and (b) such foreign company and the agreement or arrangement are notified by the Central Government, having regard to the national interest |
| 13 | Any income accruing or arising on account of sale of leftover stock of crude oil, if any, from the facility in India after the expiry of the agreement or arrangement referred to against serial number 12 or on termination of the said agreement or arrangement | A foreign company | Such sale shall be as per the terms mentioned in the said agreement or arrangement, subject to such conditions as may be notified by the Central Government in this behalf |
Serial number 11 has four conditions, all joined by "and"; serial number 12 has two. The foreign companies, agreements and arrangements that have been notified are not named in the text consulted.
Serial numbers 13A, 13B and 13C (inserted by the Finance Act, 2026)
These three serial numbers are printed in square brackets, with a footnote saying that they were inserted by the Finance Act, 2026, with effect from 1 April 2026.
| Serial number | Income (column B) | Eligible persons (column C) | Conditions (column D) |
|---|---|---|---|
| 13A | Any income arising on account of providing capital goods, equipment or tooling to a contract manufacturer, being a company resident in India | A foreign company, who is providing capital goods, equipment or tooling to the contract manufacturer for use in electronic manufacturing in India | (a) Ownership of such capital goods, equipment or tooling remains with the foreign company; (b) such capital goods, equipment or tooling is under the control and direction of the contract manufacturer; (c) the contract manufacturer is located in a custom bonded area, that is, a warehouse referred to in section 65 of the Customs Act, 1962 (52 of 1962); (d) the contract manufacturer produces electronic goods on behalf of the foreign company for a consideration; (e) such exemption shall be available up to the tax year 2030-2031 |
| 13B | Any income which accrues or arises outside India, and is not deemed to accrue or arise in India | An individual, being a non-resident for a period of five consecutive tax years immediately preceding the tax year during which he visits India for the first time for rendering services in India in connection with any scheme as may be notified by the Central Government | (a) Such individual, during the relevant tax year, renders any service in India in connection with any scheme as may be notified by the Central Government; (b) such exemption shall not be available beyond a period of five consecutive tax years commencing from the first tax year during which he visits India in connection with such scheme; and (c) such other conditions, as may be prescribed |
| 13C | Any income accruing or arising in India or deemed to accrue or arise in India by way of procuring data centre services from a specified data centre | A foreign company | (a) Such foreign company is notified by the Central Government in this behalf; (b) such foreign company does not own or operate any of the physical infrastructure or any resources of the specified data centre; (c) all sales by such foreign company to users located in India are made through a reseller entity being an Indian company; (d) such foreign company maintains and furnishes such information in such form and manner, as may be prescribed; and (e) such exemption shall be available up to tax year ending on the 31st March, 2047 |
The Customs Act, 1962 is another law; check it for the warehouse provision. For serial number 13B the scheme to be notified, and for the "other conditions" under (c), the detail is left to notification and to the Income-tax Rules, 2026; neither is in the text consulted.
Note 3 (inserted by the Finance Act, 2026): serial number 13C
- "data centre" means a dedicated secure space within a building or centralised location where computing and networking equipment is concentrated for the purpose of collecting, storing, processing, distributing or allowing access to large amounts of data;
- "data centre services" means the services provided by a data centre through the use of physical infrastructure, including land, buildings, mechanical electrical power equipment, cooling system, security and information technology infrastructure including servers, computers, storage systems, operating systems, security solutions, network and associated software platforms, networking and other equipment, human resource in India; and
- "specified data centre" means a data centre which is (i) set up under an approved scheme and notified in this behalf by the Central Government in the Ministry of Electronics and Information Technology, and (ii) owned and operated by an Indian company.
Serial number 14
| Serial number | Income (column B) | Conditions |
|---|---|---|
| 14 | Any income falling under section 10(6A), (6B), (6BB), (15A), (15)(iiia), (15)(iiib), (15)(iiic) or (15)(iv)(a), (15)(iv)(b) or (15)(iv)(fa) of the Income-tax Act, 1961 (43 of 1961) | Subject to the conditions as specified therein |
At serial number 14 the Act itself names sections of the Income-tax Act, 1961; they are quoted as printed and nothing more is said about them. The row has no separate entries in columns C and D in the copy consulted; the closing words are the only condition.
A worked example (names and facts assumed)
Seacrest Holdings Limited, a foreign company, owns the tooling used by Eastbay Electronics Private Limited, an Indian company, to make electronic goods in a custom bonded area for Seacrest for a consideration. (All names and facts are assumed.)
- Serial number 13A applies to income arising from providing capital goods, equipment or tooling to a contract manufacturer that is a company resident in India, for use in electronic manufacturing in India.
- Conditions (a) to (d) are met if Seacrest retains ownership, the tooling is under Eastbay's control and direction, Eastbay is located in a warehouse referred to in section 65 of the Customs Act, 1962, and produces electronic goods on Seacrest's behalf for a consideration.
- Under condition (e), the exemption is available up to the tax year 2030-2031. For a tax year after 2030-2031, serial number 13A does not apply.
Need help with a foreign company's income in India?
These rows depend on notifications, agreements and, for the new serial numbers, prescribed conditions. Our non-resident tax filing team can read your facts against the rows and the notifications that apply.
Key takeaways
- Serial number 9 covers cruise ship lease rentals received by a foreign company from a specified company under the same holding company, for a relevant tax year beginning on or before 1 April 2029.
- Serial numbers 11 to 13 depend on agreements or arrangements and notifications of the Central Government.
- Serial numbers 13A, 13B and 13C were inserted by the Finance Act, 2026, with effect from 1 April 2026.
- Serial number 13A runs to the tax year 2030-2031; serial number 13C to the tax year ending 31 March 2047.
- Serial number 13B gives a five-consecutive-tax-year window to an individual visiting India for a notified scheme.
- Serial number 14 refers to sections of the Income-tax Act, 1961, as printed.
Read next
- Schedule IV, serial numbers 1 to 8: income of non-residents and foreign companies
- Schedule V: investment funds, business trusts and venture capital income
- Section 6: residential status
- Schedules XI to XIII of the Income-tax Act 2025
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.