Income of Mutual Fund [Section 10(23D)] :

(i) The income of a Mutual Fund set up by a public sector bank / public financial institution / SEBI / RBI subject to certain conditions is exempt.

(ii) ―Public sector bank‖ means SBI or any nationalised bank or a bank included in the category ―other public sector banks‖ by the RBI, for example, IDBI Bank.

Note: The income of a mutual fund registered under the SEBI will be exempt without any conditions laid down by the Central Government In the case of other mutual funds, the conditions will be applicable.