# The Finance Act, 2025, Section 6: Amendment of section 10

- Act: The Finance Act, 2025 (Act 7 of 2025)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2025/section/6/

## Text

Amendment of section 10. 6.  In section 10 of the Income-tax Act,— (a) | in clause (4D), in the Explanation,— (i) | in clause (aa), for the figures "2025", the figures "2030" shall be substituted; (ii) | in clause (c),— (A) | in sub-clause (i), in item (I), for sub-item (b), the following sub-item shall be substituted, namely:— "(b) which has been granted a certificate as a retail scheme or an Exchange Traded Fund and satisfies the conditions laid down for such schemes or funds under the International Financial Services Centres Authority (Fund Management) Regulations, 2022, made under the International Financial Services Centres Authority Act, 2019 (50 of 2019)."; (B) | in sub-clause (ii), in item (I), for the figures "2025", the figures "2030" shall be substituted; (b) | in clause (4E), with effect from the 1st April, 2026,— (i) | in sub-clause (ii), after the words "offshore derivative instruments", the words "or over-the-counter derivatives" shall be inserted; (ii) | in the long line, after the word, figures and letters "section 80LA", the words "or any Foreign Portfolio Investor being a unit of an International Financial Services Centre" shall be inserted; (iii) | the following Explanation shall be inserted, namely:— 'Explanation.—For the purposes of this clause, "Foreign Portfolio Investor" means a person registered under the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);'; (c) | in clause (4F), for the figures "2025", the figures "2030" shall be substituted; (d) | in clause (4H),— (i) | in the opening portion,— (A) | for the word "aircraft" at both the places where it occurs, the words "aircraft or a ship" shall be substituted; (B) | for the figures "2026", the figures "2030" shall be substituted; (ii) | for the Explanation, the following Explanation shall be substituted, namely:— 'Explanation.—For the purposes of this clause,— (a) | "aircraft" means an aircraft or a helicopter, or an engine of an aircraft or a helicopter, or any part thereof; (b) | "ship" means a ship or an ocean vessel, engine of a ship or ocean vessel, or any part thereof;'; (e) | in clause (10D), for the eighth proviso, the following proviso shall be substituted, namely:— 'Provided also that the provisions of the fourth, fifth, sixth and seventh provisos shall not apply to any sum received— (a) | on the death of a person; or (b) | under a life insurance policy issued by the International Financial Services Centre insurance office, including the sum allocated by way of bonus on such policy. Explanation.—For the purposes of this proviso, "International Financial Services Centre insurance office" shall have the same meaning as assigned to it in clause (k) of sub-regulation (1) of regulation 3 of the International Financial Services Centres Authority (Insurance Intermediary) Regulations, 2021, made under the International Financial Services Centres Authority Act, 2019 (50 of 2019):'; (f) | after clause (12B), the following clause shall be inserted with effect from the 1st April, 2026, namely:— "(12BA) any payment from the National Pension System Trust to an assessee, being the parent or guardian of a minor, under the pension scheme referred to in section 80CCD, on partial withdrawal made out of the account of the minor, as per the terms and conditions, specified under the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013) and the regulations made thereunder, to the extent it does not exceed twenty-five per cent of the amount of contributions made by him;"; (g) | in clause (23FE),— (i) | in the opening portion, after the words "long-term capital gains", the brackets, words, figures and letters "(whether or not such capital gains are deemed as short-term capital gains under section 50AA)" shall be inserted; (ii) | in sub-clause (i), for the figures "2025", the figures "2030" shall be substituted; (h) | in clause (34B),— (i) | for the word "aircraft" at both the places where it occurs, the words "aircraft or a ship" shall be substituted; (ii) | for the Explanation, the following Explanation shall be substituted, namely:— 'Explanation.—For the purposes of this clause,— (a) | "aircraft" means an aircraft or a helicopter, or an engine of an aircraft or a helicopter, or any part thereof; (b) | "International Financial Services Centre" shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005); (c) | "ship" means a ship or an ocean vessel, engine of a ship or ocean vessel, or any part thereof;'; (i) | in clause (50), after the long line and before Explanation 1, the following proviso shall be inserted with effect from the 1st day of April, 2025, namely:— "Provided that the provisions of this clause shall not apply to any income of the previous year relevant to the assessment year beginning on or after the 1st day of April, 2026.".

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