Schedule VII 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.
Schedule VII to the Income-tax Act, 2025 lists persons who are not liable to pay income-tax on total income for a tax year, subject to the conditions in column C. This article covers the Table from serial number 25 to the end (serial number 49), with Notes 4 to 6: insurance and employee funds, agricultural produce market committees, welfare corporations, commodity and export boards, the New Pension System Trust, credit guarantee bodies, infrastructure financing institutions and the New Development Bank. Serial numbers 1 to 24 are in our note on Schedule VII, serial numbers 1 to 24.
This explanation is as per the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026. Serial number 49 is printed as inserted by the Finance Act, 2026, with effect from 1 April 2026; Schedule VII is among the Schedules amended by section 126 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 persons sit in the 2025 Act, see our mapping note on exemptions and the Schedules.
Under Schedule VII (brought in by section 11), any eligible person in column B is not liable to pay income-tax on total income for a tax year, subject to column C. From serial number 25 most rows are "Nil". The rows with real conditions are serial numbers 28, 29 and 32 (purpose and constitution), 42 (notification), 46 (guidelines by notification), 47 (ten consecutive tax years, notified), 48 (five consecutive tax years, extendable by up to five more) and 49 (New Development Bank, subject to prescribed information). For help with an institution's status see legal consultation.
Serial numbers 25 to 32
| Serial number | Eligible persons (column B) | Conditions (column C) |
|---|---|---|
| 25 | Deposit-linked Insurance Fund established under section 3G of the Coal Mines Provident Funds and Miscellaneous Provisions Act, 1948 (46 of 1948) | Nil |
| 26 | Deposit-linked Insurance Fund established under section 6C of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) | Nil |
| 27 | Employees' State Insurance Fund set up under the provisions of the Employees' State Insurance Act, 1948 (34 of 1948) | Nil |
| 28 | An agricultural produce market committee or board constituted under any law | Such committee or board is constituted for the purpose of regulating the marketing of agricultural produce |
| 29 | A corporation established by a Central Act or State Act or Provincial Act or of any other body, institution or association (being a body, institution or association wholly financed by the Government) | Such corporation or other body or institution or association has been established or formed for promoting the interests of the members of the Scheduled Castes or the Scheduled Tribes or backward classes, or of any two, or all of them |
| 30 | A corporation established by the Central Government or any State Government for promoting the interests of the members of a minority community | Nil |
| 31 | Any corporation established by a Central Act or State Act or Provincial Act for the welfare and economic upliftment of ex-servicemen being the citizens of India | Nil |
| 32 | Any co-operative society formed for promoting the interests of the members of either the Scheduled Castes or Scheduled Tribes, or both | Membership of such co-operative society shall consist of only other co-operative societies formed for similar purposes and the finances of the society are provided by the Government and such other societies |
Serial numbers 33 to 41: boards, authorities and the pension trust
| Serial number | Eligible persons (column B) | Conditions |
|---|---|---|
| 33 | Coffee Board constituted under section 4 of the Coffee Act, 1942 (7 of 1942) | Nil |
| 34 | Rubber Board constituted under section 4(1) of the Rubber Board Act, 1947 (24 of 1947) | Nil |
| 35 | Tea Board established under section 4 of the Tea Act, 1953 (29 of 1953) | Nil |
| 36 | Tobacco Board constituted under the Tobacco Board Act, 1975 (4 of 1975) | Nil |
| 37 | Marine Products Export Development Authority established under section 4 of the Marine Products Export Development Authority Act, 1972 (13 of 1972) | Nil |
| 38 | Agricultural and Processed Food Products Export Development Authority established under section 4 of the Agricultural and Processed Food Products Export Development Act, 1985 (2 of 1986) | Nil |
| 39 | Spices Board constituted under section 3(1) of the Spices Board Act, 1986 (10 of 1986) | Nil |
| 40 | Coir Board established under section 4 of the Coir Industry Act, 1953 (45 of 1953) | Nil |
| 41 | New Pension System Trust established on the 27th February, 2008 under the provisions of the Indian Trusts Act, 1882 (2 of 1882) | Nil |
Printing notes: serial number 33 is printed "33" without a full stop after the number, and serial number 38 cites the Agricultural and Processed Food Products Export Development Act as "1985 (2 of 1986)". Both are quoted as printed and not corrected. The Acts named are other laws; check them separately.
Serial numbers 42 to 46
| Serial number | Eligible persons (column B) | Conditions (column C) |
|---|---|---|
| 42 | Any body or authority or Board or Trust or Commission, not being a company, which has been established or constituted by or under a Central Act or State Act with one or more of these purposes: (a) dealing with and satisfying the need for housing accommodation; (b) planning, development or improvement of cities, towns and villages; (c) regulating, or regulating and developing, any activity for the benefit of the general public; or (d) regulating any matter, for the benefit of the general public, arising out of the object for which it has been created | Such body or authority or Board or Trust or Commission is notified by the Central Government |
| 43 | National Credit Guarantee Trustee Company Limited, being a company established and wholly financed by the Central Government for the purposes of operating credit guarantee funds established and wholly financed by the Central Government | Nil |
| 44 | A credit guarantee fund established and wholly financed by the Central Government and managed by the National Credit Guarantee Trustee Company Limited | Nil |
| 45 | Credit Guarantee Fund Trust for Micro and Small Enterprises, being a trust created by the Central Government and the Small Industries Development Bank of India established under section 3(1) of the Small Industries Development Bank of India Act, 1989 (39 of 1989) | Nil |
| 46 | An infrastructure debt fund | Such fund is set up as per the guidelines issued by the Central Government, by notification |
The bodies notified under serial number 42 and the guidelines under serial number 46 are not in the text consulted.
Serial numbers 47 to 49: infrastructure financing and the New Development Bank
| Serial number | Eligible persons (column B) | Conditions (column C) |
|---|---|---|
| 47 | An institution established for financing the infrastructure and development set up under an Act of Parliament | Such exclusion from total income is for ten consecutive tax years, beginning from the tax year in which such institution is set up, and such institution is notified by the Central Government |
| 48 | A developmental financing institution, licensed by the Reserve Bank of India under an Act of Parliament referred to against serial number 47 | (a) Such institution is notified by the Central Government; (b) exclusion of such income from the total income is for five consecutive tax years beginning from the tax year in which the developmental financing institution is set up; and (c) the Central Government may, by notification, extend the period of exclusion for a further period, not exceeding five more consecutive tax years, subject to fulfilment of such conditions as specified in the said notification |
| 49 (inserted by the Finance Act, 2026) | New Development Bank | Such exemption shall be subject to furnishing of information in such form and manner, as may be prescribed |
In the copy consulted, serial number 47 is printed with its words run together; they are read as ordinary words.
Notes 4 to 6
- Note 4 (serial number 29): "Scheduled Castes" and "Scheduled Tribes" have the meanings assigned in article 366(24) or (25) of the Constitution; "backward classes" means such classes of citizens, other than the Scheduled Castes and the Scheduled Tribes, as may be notified by the Central Government or any State Government.
- Note 5 (serial number 30): "minority community" means a community notified as such by the Central Government.
- Note 6 (serial number 31): "ex-servicemen" means persons who (i) have served in any rank, whether as combatant or non-combatant; (ii) in the armed forces of the Union or armed forces of the Indian States before the commencement of the Constitution (but excluding the Assam Rifles, Defence Security Corps, General Reserve Engineering Force, Lok Sahayak Sena, Jammu and Kashmir Militia and Territorial Army); (iii) for a continuous period of not less than six months after attestation; (iv) who have been released, otherwise than by way of dismissal or discharge on account of misconduct or inefficiency; and (v) includes their wife, children, father, mother, minor brother, widowed daughter and widowed sister, wholly dependent upon such ex-servicemen immediately before their death or incapacitation, in case of deceased or incapacitated ex-servicemen.
(Notes 1 to 3 of the Schedule are in our note on serial numbers 1 to 24.)
A worked example (names and years assumed)
A developmental financing institution, licensed by the Reserve Bank of India under an Act of Parliament referred to against serial number 47, is set up in a tax year, which for illustration we call Year 1. The Central Government has notified it (assumed).
- Serial number 48(b): the exclusion applies for five consecutive tax years beginning from Year 1, that is Years 1 to 5.
- Serial number 48(c): by notification, the Central Government may extend the period by a further period of not more than five more consecutive tax years, that is up to Year 10, on the conditions in the notification. Without an extension the exclusion stops after Year 5.
- For an institution under serial number 47, the period is ten consecutive tax years from the year it is set up, Years 1 to 10, if notified.
Need help with an institution's status?
Whether a board, fund or institution falls in a row of Schedule VII depends on the statute that created it and on notifications. Our legal consultation team can review the founding documents and the notifications that apply.
Key takeaways
- Schedule VII lists persons not liable to pay income-tax on total income, subject to column C.
- From serial number 25 most rows have the condition "Nil", including the Coffee Board, Rubber Board, Tea Board and Tobacco Board.
- Serial numbers 29, 30, 31 and 32 are tied to welfare of Scheduled Castes, Scheduled Tribes, backward classes, minorities, ex-servicemen and co-operative societies, with definitions in Notes 4 to 6.
- Serial numbers 42, 46 and 47 depend on notification.
- Serial number 47 runs for ten consecutive tax years; serial number 48 for five, extendable by up to five more.
- Serial number 49, the New Development Bank, was inserted by the Finance Act, 2026 and needs prescribed information.
Read next
- Schedule VII, serial numbers 1 to 24: funds, relief funds, universities, hospitals and mutual funds
- Schedule XI, Part A, paragraphs 1 to 6: recognised provident fund conditions
- Schedule II, serial numbers 3 to 17: provident fund and pension receipts
- Section 332: registration of non-profit organisations
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.