Section 10(30): Income Tax Exemption for Tea Board Subsidies
Section 10(30) of the Income-tax Act, 1961 provided a specific exemption for eligible Tea Board subsidies received by businesses growing and manufacturing tea in India. The relief concerns approved tea replantation, replacement, rejuvenation and consolidation programmes, not all tea-manufacturing income.
Eligible assessee: An assessee engaged in growing and manufacturing tea in India.
Exempt receipt: A qualifying subsidy received through or from the Tea Board.
Permitted purposes: Replantation or replacement of tea bushes, or rejuvenation or consolidation of tea cultivation areas.
Exempt amount: The full qualifying subsidy, subject to statutory conditions.
Document: Tea Board certificate stating the subsidy amount.
What does Section 10(30) provide?
Section 10 lists specified income excluded from total income under the Income-tax Act, 1961. Under clause 10(30), the relevant exemption applies to an amount of subsidy received by an assessee engaged in the business of growing and manufacturing tea in India, through or from the Tea Board, under a scheme specified by the Central Government by notification.
The notified scheme must relate to replantation or replacement of tea bushes or rejuvenation or consolidation of areas used for cultivation of tea in India. The legal wording and notification applicable to the relevant income period govern eligibility.
Eligible assessee and qualifying income
| Eligible assessee | Any assessee carrying on the business of growing and manufacturing tea in India. |
|---|---|
| Nature of income | Subsidy received through or from the Tea Board under a qualifying Central Government-notified scheme. |
| Qualifying activities | Replanting or replacing tea bushes; rejuvenating or consolidating tea cultivation areas in India. |
| Amount exempt | Entire amount of the qualifying subsidy, with no separate monetary cap stated in Section 10(30). |
| Evidence | Tea Board subsidy certificate, scheme notification, sanction letter, receipt details and return records. |
Conditions for the exemption
- Tea cultivation and manufacturing: The recipient must be engaged in the business of both growing and manufacturing tea in India.
- Specified source: The subsidy must be received through or from the Tea Board.
- Notified scheme: It must be paid under a scheme specified by the Central Government by notification.
- Approved purpose: The payment must be for replantation or replacement of tea bushes or rejuvenation or consolidation of land used for tea cultivation in India.
- Certificate: The historical clause requires the assessee to furnish to the Assessing Officer, along with the return of income, a Tea Board certificate showing the subsidy amount paid during the previous year. For electronic filing or subsequent periods, check the applicable procedural requirements.
Meaning of key terms
Tea Board
The Tea Board is a statutory body associated with development and regulation of the tea industry under the Tea Act, 1953. Its subsidy programmes and documentation should be checked against the specific scheme and notification.
Replantation and replacement
Replantation generally involves establishing new tea bushes in place of old or unproductive plants. Replacement involves substituting existing bushes in accordance with the approved programme.
Rejuvenation and consolidation
Rejuvenation generally aims to restore productivity of tea cultivation areas, while consolidation refers to measures covered by an eligible scheme for improving or reorganising cultivation areas. The notified scheme determines which activities qualify.
Example of tax treatment
Suppose a tea estate grows and manufactures tea in India and receives a subsidy of Rs. 8 lakh through the Tea Board for replacing old tea bushes under a Central Government-notified scheme. If it satisfies the applicable conditions and holds the required Tea Board certificate, the Rs. 8 lakh qualifying subsidy may be excluded from total income under historical Section 10(30). This does not automatically exempt the estate's tea sales or other business receipts.
Which law applies in 2026?
Section 10(30) refers to the Income-tax Act, 1961. The Income-tax Act, 2025 came into effect on 1 April 2026. For tax year 2026-27 and later, verify the corresponding provision under the 2025 Act, the relevant scheme notifications and any transition rules. For earlier assessment years, use the wording and procedures of the 1961 Act applicable to that year. Do not assume the old clause number remains the operative citation for new tax years.
Frequently asked questions
What subsidy qualifies for the exemption?
A subsidy received through or from the Tea Board under a notified scheme for the specified replantation, replacement, rejuvenation or consolidation purposes.
Can a business that only trades tea claim it?
Not merely because it trades tea. The historical clause requires the assessee to be engaged in growing and manufacturing tea in India.
Is the entire qualifying subsidy exempt?
Yes. The clause exempts the qualifying subsidy amount, subject to all statutory conditions.
Is a Tea Board certificate necessary?
Yes. The historical provision expressly refers to a certificate from the Tea Board as to the subsidy amount and furnishing it with the return of income.
Does this exemption cover all profits from tea manufacture?
No. It applies to specified subsidies, not generally to manufacturing or trading profits.
Official legal sources
- Income Tax Department - legislation and guidance concerning historical Section 10(30).
- India Code - texts of the Income-tax Act, 2025, the Income-tax Act, 1961 and the Tea Act, 1953.
- Tea Board India - schemes, subsidy information and certificates.
- Income Tax e-Filing Portal - return filing and official updates.
Related articles: Section 10 income-tax exemptions, tax-free income explained and Chapter VI-A deductions.
General educational information. Confirm the notified subsidy scheme, documentary requirements and governing legislation for the relevant tax year before claiming an exemption.