The Statutory Brief

IT Act 1961 → 2025 / Section 10(15)

Exemptions

Section 10(15) → Schedule II

Tax-free interest: notified bonds, gold deposit bonds, local authority bonds

Section 10(15) of the old Income-tax Act, 1961 · new Schedule II under the Income-tax Act, 2025

New reference Schedule II, Table Sl. Nos. 11–13 and 17 (and Schedules III, IV, VI)

Income-tax Act, 1961Section 10(15)

  • Interest on notified Government securities, bonds and certificates exempt
  • Gold Deposit / Gold Monetisation interest exempt
  • Local authority and pooled finance bonds as notified

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Schedule II, Table Sl. Nos. 11–13 and 17 (and Schedules III, IV, VI)

  • Notified securities and deposits: Schedule II, Sl. No. 11
  • Gold deposit/monetisation interest: Sl. No. 12
  • Local authority bonds: Sl. No. 13
  • Some sub-clauses moved to Schedules III, IV and VI

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Split across Schedules; notified exemptions continue.

Practice notes

  • Tax-free bond issues continue to be notified case by case; check the notification for each bond.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

Where is tax-free bond interest in the new Income Tax Act 2025?

Schedule II, Table Sl. Nos. 11 to 13 (old section 10(15)).

What is section 10(15) called in the new Income-tax Act, 2025?

Section 10(15) of the Income-tax Act, 1961 corresponds to Schedule II, Table Sl. Nos. 11–13 and 17 (and Schedules III, IV, VI) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 10(15) under the new Income Tax Act?

Split across Schedules; notified exemptions continue.

Is section 10(15) still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 10(15) of the 1961 Act. Schedule II, Table Sl. Nos. 11–13 and 17 (and Schedules III, IV, VI) of the 2025 Act applies from tax year 2026-27.

Related sections

194A→393TDS on interest other than interest on securities (FD, RD, loans)10(4)(ii)→Sch IVTax-free interest on NRE accounts80C→123Deduction for life insurance, PF, PPF, ELSS, tuition fees, home-loan principal and other specified savings