Scheduled Bank – Section 2(98) | Income-tax Act, 2025 vs 1961

§ 2(98) · Income-tax Act, 2025

Scheduled bank

ITA 2025 · 2(98) ITA 1961 · 2(48) Expln 1
Definition — Section 2(98)

Has the same meaning as assigned to it in section 2(e) of the Reserve Bank of India Act, 1934 — means a bank included in the Second Schedule to that Act. The Second Schedule lists State Co-operative Banks, nationalised banks, private sector banks, foreign banks, and regional rural banks that meet RBI's eligibility conditions for scheduled status.

Act Comparison
Income-tax Act, 2025
2(98)
Scheduled bank
Income-tax Act, 1961
2(48) Expln 1
Scheduled bank
Key Points
  • Maps to Explanation 1 to Section 2(48) of the 1961 Act
  • Scheduled banks are more commonly referenced in tax law than 'public sector banks'
  • FDs with scheduled banks qualify for deduction and TDS exemption provisions under the 2025 Act — maps to Sections 80C and 194A of the 1961 Act
💡 Practical Note

TDS exemption limit for FD interest is ₹40,000 from scheduled banks — if you have multiple FDs across branches, the bank aggregates all interest before applying TDS.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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