Any income earned that isn’t subject to income tax is known as exempted income. According to the Income Tax Act’s Section 10, there are several types of income that will be subjected to income tax within a financial year, if they fulfill some conditions and guidelines. Read below to know who are exempted from income tax:
Some of the Fully Exempt Incomes| Section | Type of Income |
10(1) |
Income from agriculture |
10(2) |
Share from the income of HUF (Hindu Undivided Family) |
10(2A) |
Profit from a firm in case it files separate income returns |
10(3) |
Income up to Rs.5000 received casually. For income through horse race, shouldn’t exceed Rs.2500 |
10(4) |
Interest from NRE account or notified bonds |
10(10) |
Gratuity received by a government employee on death or retirement |
10(16) |
Scholarship to meet the cost of education |
10(23D) |
Income from tax-free mutual funds |
10(26A) |
Income earned by a resident of Ladakh in Ladakh or outside India |
10(30) |
Subsidy from the Tea Board |
10(31) |
Replantation subsidy approved by a board |
10(32) |
Up to Rs.1500 in income of a minor when clubbed with the income of adult |
10(34A) |
Income from buyback of shares |
10(35) |
Income or dividends from MFs and UTI |
10(37) |
Income from the acquisition of agricultural land by the government |
10(18) |
Pension |
Partially Exempt Incomes
10(5) |
LTA or Leave Travel Allowance |
10(10) |
Income received by non-government employees through retrenchment compensation, leave encashment, gratuity, or pension is subject to prescribed limits |
10(13A) |
House rent allowance |
10(13) |
Payments received from approved superannuation funds |
10(14) |
Allowances such as Transport Allowance, Children’s Education Allowance, etc. |
Read more:
What is Travel Allowance, Dearness Allowance and House Rent Allowance in salary How to calculate HRA in income taxI hope now you know who is exempt from paying income tax.
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Who are exempted from income tax?
Harmeet
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3 Year
2021-09-24T15:12:45+00:00 2021-09-24T17:28:47+00:00Comment
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