§ 190
Chapter XIII — Determination Of Tax In Special Cases

Where there is included in the total income of an assessee any income on

Income-tax Act, 2025

Business owners are entitled to a deduction from their total income tax if it includes income that is not taxable. This deduction is calculated at the average income tax rate on the non-taxable amount.

  • The deduction applies to income that is not subject to income tax under this Act.
This helps to avoid double taxation on certain types of income.

📜 Official text of the section +
190. Where there is included in the total income of an assessee any income on which no income-tax is payable under the provisions of this Act, the assessee shall be entitled to a deduction, from income-tax with which he is chargeable on his total income, of an amount equal to the income-tax calculated at the average rate of income-tax on the amount on which no income-tax is payable. Tax on accumulated balance of recognised provident fund.

Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.