Section 10 is the longest section most tax professionals ever read. In the Income-tax Act, 2025 it becomes a short gateway — section 11 — with the actual exemptions moved into Schedules II to VII, organised by who is claiming them.
Quick answer: the mapping
| Income-tax Act, 1961 | Subject | Income-tax Act, 2025 |
|---|---|---|
| 10 | Incomes not included in total income | 11 (read with Schedules II to VII) |
| 10(10), 10(10A), 10(10AA), 10(10B), 10(10C) | Gratuity, pension, leave encashment, retrenchment, VRS | 19 |
| 10AA | SEZ unit deduction | 144 |
| 13A | Income of political parties | 12 (read with Schedule VIII) |
| 13B | Income of electoral trusts | 12 (read with Schedule VIII) |
The Income-tax Act, 2025 received Presidential assent on 21 August 2025 and takes effect from 1 April 2026. The Income-tax Act, 1961 continues to govern every tax year up to 31 March 2026, and all assessments, appeals, penalties and prosecutions relating to those years are completed under the old Act by virtue of the repeal and savings provision in section 536. The mapping on this page is drawn from the section-wise concordance published with the Act, including the corrigenda notified in the Gazette on 3 September 2025.
What the 1961 provision did
Section 10 of the Income-tax Act, 1961 listed dozens of exempt incomes in a single running section, from agricultural income to gratuity to income of specified institutions, accumulating clauses and sub-clauses over six decades.
Where it sits in the Income-tax Act, 2025
Section 11 of the Income-tax Act, 2025 provides that income listed in the Schedules is not included in total income. The lists are split by claimant: Schedule II for income not to be included generally, Schedule III for eligible persons, Schedule IV for eligible non-residents and foreign companies, Schedule V for investment funds, business trusts and their unit holders, Schedule VI for International Financial Services Centre units, and Schedule VII for persons wholly exempt from tax. Political parties and electoral trusts are dealt with in section 12 read with Schedule VIII.
What actually changed
- You now look up the person first. The Schedules are organised by claimant category, which reverses the way section 10 was usually searched.
- Salary-linked exclusions moved out of the exemption regime. Gratuity, commuted pension, leave encashment, retrenchment compensation and VRS — sections 10(10) to 10(10C) — are dealt with through section 19 in the salary computation.
- The SEZ deduction moved to the deduction chapter. Section 10AA becomes section 144 in Chapter VIII, so it is a deduction rather than an exemption in structure.
- Schedule VII is a list of exempt persons, not exempt incomes — a distinction section 10 never drew clearly.
What to do about it
- When looking for an exemption, identify the claimant category first, then the Schedule, then the entry.
- Do not assume a section 10 clause survived in the same form — check the Schedule entry text.
- Salary exemptions are now part of the section 19 computation, so payroll teams should read section 19 rather than searching the Schedules.
The sections around it in the new Act
Renumbering is easier to absorb in context. The table below lists the neighbouring provisions of the Income-tax Act, 2025 with the 1961 sections each of them carries forward, so you can see where this provision sits and what moved with it.
| New section (2025) | Provision | Corresponding 1961 section(s) |
|---|---|---|
| 11 | Incomes not to be included in total income (Read with Schedules II to VII) | 10 |
| 12 | Incomes not to be included in total income of political parties and electoral trusts (Read with Schedule VIII) | 13A, 13B |
| 13 | Heads of Income | 14 |
| 14 | Income not forming part of total income and expenditure in relation to such income | 14A |
| 15 | Salaries | 15 |
| 16 | Income from salary | 17 |
| 17 | Perquisite | 17 |
| 18 | Profits in lieu of salary | 17 |
| 19 | Deductions from salaries | 10(10), 10(10A), 10(10AA), 10(10B), 10(10C), 16 |
How to read a section mapping
- A corresponding section is not always an identical section. Where several 1961 sections map to one new section, conditions that used to sit apart are now read together.
- Where one 1961 section maps to several new sections, the old provision was split, and each new section carries only part of what you used to cite.
- Some new sections have no 1961 equivalent at all — the registered non-profit code in sections 332 to 355 is the largest example.
- Always cite by year. The Act that applies is decided by the tax year in question, not by the date you are writing on.
This page is a structural mapping guide, not tax advice. A corresponding section is not always an identical section — several provisions were merged, split or re-worded when they were carried over. Always read the actual text of the new section before relying on it, and check for later amendments, rules and CBDT notifications.