Which income is exempted from income tax ?

The world of income tax often gets confusing. Some things have heavy taxation and then there are things that are exempted from any sort of tax. In this segment, I will share with you various details on which income is exempted from income tax. Take a look at the information given below. 

Any type of income that a person earns during a financial year is called 'Exempt Income’, when it is deemed to be non-taxable under the Income Tax Act. Details about the same have been mentioned in Section 10 of the Act. There are separate guidelines and conditions for exempt income within a financial year.

All of these income types are non- taxable.

1. House Rent Allowance : This consists of rent received by landlords from tenants for renting their personal property.
2. Other Allowance : This consists of an allowance that is given by businesses or the government on transportation, children’s education, and a subsidy on hostel fees.

1. Exemption on Housing Loan : This consists of certain exemptions provided to an individual when they avail a home loan.

        This consists of a list of incomes that are given in Section 10, Section 54 of the Income Tax Act, 1961.

1. This consists of Leave and Travel Allowance : This consists of any allowance amount that is given to a person for 'Leave and Travel' practice or policy.

1. Payments Received :

   This consists of any payment received via a recognised or authorised Fund or Superannuation Fund.

   7. Government Awards :

   This consists of payment or income received in the form of  government award or  localised body or authority.

   8. Exemptions :

   This includes exemptions being provided to citizens. LTA, Encashment of Leave, Pension

,Gratuit ,Voluntary Retirement Scheme and Perquisites are part of this section.

So, if you are earning income from the methods given above, you can live without any worries about taxes. This is all I know about which income is exempted from income tax. I hope your queries have been satiated.