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 Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 10(10BC)
In the 1961 statute, Section 10(10BC) deals with 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.
The new code maps this to Section 12: the provision is retained and renumbered as Section 12 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Crucial humanitarian provision.
On the ground, changes to Section 10(10BC) carry a Medium impact. Provides relief to victims of natural or man-made disasters.
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) of the Income Tax Act, 1961 covers 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.
Where does Section 10(10BC) of the ITA 1961 go under the Income-tax Act, 2025?
Section 10(10BC) of the Income Tax Act, 1961 maps to Section 12 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Crucial humanitarian provision.
Why does the change to Section 10(10BC) matter for taxpayers?
The transition impact for Section 10(10BC) is rated Medium. Provides relief to victims of natural or man-made disasters.
What are the key changes to Section 10(10BC) under the Income-tax Act, 2025?
Explicitly covers pandemic-related state compensations. These points are specific to Section 10(10BC) (Exemption of compensation received on account of disaster).
Disclaimer: This mapping of Section 10(10BC) (Exemption of compensation received on account of disaster) to Section 12 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 10(10BC) is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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