Tax Tips: These five types of income are tax free, know why they get exemption under Income Tax Act..
Income beyond a certain limit is taxed, so every year, employed people and other income taxpayers have to pay tax. But, do you know that there is no tax on income from certain sources? For a while you will think, does this happen? But, this is true, because there are 5 types of income on which no tax has to be paid.
There are also provisions for non-taxable income in the country. This is income which is not subject to income tax. Let us tell you from which source of income is considered non-taxable in India.
Income from agriculture is tax-free
Under Section 10 (1) of the Income Tax Act, income from agriculture is completely tax-free. This includes production, processing, and distribution of wheat, rice, pulses, and fruits. Apart from this, the rent received from the property which is used for agricultural purposes is also tax-free, and the income from the purchase and sale of agricultural land is also non-taxable.
Under Section 56 (ii) of the Income Tax Act, there is no tax on property, jewelery, or money received from relatives. However, gifts received from non-relatives are exempt only with a limit of Rs 50,000. Income received from a Hindu Undivided Family (HuF) or by way of inheritance is exempt from income tax under Section 10(2) of the Income Tax Act.
No tax on gratuity and scholarship
Gratuity received after the death or retirement of a government employee is completely tax-free. Private sector employees also get the benefit of tax relief on gratuity up to Rs 10 lakh. As per the Income Tax Act, tax deduction on gratuity is also subject to other limits.
Scholarships given by various institutions to students to complete their education are tax-free, also winners of gallantry awards like Mahavir Chakra, Paramvir Chakra, Vir Chakra, and other pensioners are not required to pay tax on the pension received. Is.
Additionally, as per Section 10(15) of the Income Tax Act, interest earnings on certain schemes are completely tax-free. Among these, there is no tax on interest received on Sukanya Samriddhi Yojana, Gold Deposit Bond, Local Authority, and Infrastructure Bond.
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