Section 10(10BC) → Section 12
Exemption of compensation received on account of disaster
Quick Answer
Section 10(10BC) of the Income Tax Act, 1961 (Exemption of compensation received on account of disaster) corresponds to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 10(10BC)
Provision Summary
Exempts any amount received from the Central/State Govt or local authority as compensation on account of any disaster.
Sec 12
Provision Summary
Retained. Crucial humanitarian provision.
Key Changes & Highlights
- Explicitly covers pandemic-related state compensations.
Frequently Asked Questions
What does Section 10(10BC) of the Income Tax Act 1961 deal with?
Section 10(10BC) (Exemption of compensation received on account of disaster) Exempts any amount received from the Central/State Govt or local authority as compensation on account of any disaster.
What is the new section number for Section 10(10BC) under the Direct Tax Code 2025?
Section 10(10BC) of the ITA 1961 maps to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 10(10BC) under the new tax code?
Section 10(10BC) is marked as "Retained" with status "Active". Impact: Medium - Provides relief to victims of natural or man-made disasters.
What are the key changes to Section 10(10BC) under DTC 2025?
Explicitly covers pandemic-related state compensations.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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