Section 123

Amendment of Schedule III

Amendment of Schedule III.

123. In Schedule III to the Income-tax Act, in the Table,—

(a)

after serial number 38 and the entries relating thereto, the following shall be inserted, namely:—

'38A.

Disability Pension received (including service element and Disability element).

An individual who has been a member of the armed forces (including paramilitary forces) of the Union.

(a)		The individual has been invalided out of service in the armed forces on account of bodily disability attributable to, or aggravated by such service; and
(b)		the individual has not retired on superannuation or otherwise.

38B.

Any interest on compensation amount awarded by Motor Accident Claims Tribunal.

An individual or his legal heir.

Such interest is received under the Motor Vehicles Act, 1988 (59 of 1988).

38C.

Any income in respect of any award or agreement made on account of compulsory acquisition of any land.

An individual or a Hindu undivided family.

Such award or agreement is made under the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013), except under section 46 of the said Act.

38D.

Any income chargeable under the head "Capital gains" arising from the transfer of specified capital asset.

An individual or a Hindu undivided family.

(a)		Such eligible person was the owner of such specified capital asset as on the 2nd June, 2014;
(b)		such specified capital asset is transferred under the Land Pooling Scheme covered under the Andhra Pradesh Capital City Land Pooling Scheme (Formulation and Implementation) Rules, 2015 made under the provisions of the Andhra Pradesh Capital Region Development Authority Act, 2014 (Andhra Pradesh Act 11 of 2014) and the rules, regulations and Schemes made under the said Act; and
(c)		such eligible person was handed over possession of reconstituted plot or land on or before the 31st March, 2031.';

(b)		after Note 11, the following Notes shall be inserted, namely:—
		'Note 12: For the purposes of Sl. No. 38A,—

(a)		the provisions as mentioned against the said serial number shall apply on or after such date as may be notified by the Central Government in this behalf; and
(b)		pending such notification, the entire disability pension, that is, disability element and service element of a disabled officer of the Indian armed forces shall be exempt from income-tax.
		Note 13: For the purposes of Sl. No. 38D, "specified capital asset" means—

(a)		the land or building or both owned by the assessee as on the 2nd June, 2014 and which has been transferred under the Scheme; or
(b)		the land pooling ownership certificate issued under the Scheme to the assessee in respect of land or building or both referred to in clause (a); or
(c)		the reconstituted plot or land, as the case may be, received by the assessee in lieu of land or building or both referred to in clause (a) in accordance with the Scheme, if such plot or land, as the case may be, so received is transferred within two years from the end of the financial year in which the possession of such plot or land was handed over to him.'.

Section

Amendment of Schedule III

Footnotes