List of all incomes exempted from income tax, list of exempted incomes 2020. There are allowances which are fully taxable, partly taxable and fully exempt from income tax. Exemption under section 10 1 on agricultural income. Section 10 16 of the income tax act provides an exemption towards the scholarship granted to meet the cost of education. Useful for undergraduate students of taxation, covers selected items exempt from tax under section 10 of income tax act 1961 slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Income exempted under section 10 of income tax act 1961 for assessment year 201718, based on b com syllabus of goa university. Income tax exemptions for salaried employees fy 201920. An employee can claim exemption under section 105 in respect of leave travel. Notes the application form in triplicate should be sent to the commissioner of income. The order passed under section 10 23cvi of the income tax act, 1961 by the learned commissioner exemptions chandigarh is against law and facts on the file in as much as he was not justified to hold that the applicant school does not qualify for exemption under section 10 23c of the act. Tax benefits under section 10 10d of the income tax act, 1961 can be claimed only on the following terms and conditions. This article discusses in brief about income which are exempt from tax under income tax, 1961 and covers income exempt under section 10 1 to section 10 49. Act provides for certain categories of payments to be exempt from taxation, either wholly or partly. Death benefit or maturity benefit or bonus received from life insurance policies.
Section 10 of the income tax act, 1961 contains various exemptions deductions an assessee is eligible to claim while computing his total income for the financial year, for the purpose of filing hisher income tax return for that financial year. The assessee claimed exemption under section 10 10b of the income tax act in respect of the above ex gratia amount he received. This chapter will help you understand what all are the exemptions comes under section 10 of the income tax act. Like agriculture income completely exempt under sec 10 1 etc. List of exempted incomes taxfree under section10 income tax.
It is to be noted that the entire hra is not deductible. Latest income tax slab rates, today we provide complete list of all incomes exempt from income tax. Agricultural income is defined under section 21a of the incometax act. Exempt income specified under tax as per section 10. Most salaried employees receive a specific amount of salary that includes certain allowances too. Dividend income from domestic companies and mutual fund section 10 34 and section 10 35 of income tax act, 1961 dividend received on investment is from domestic company is exempted from payment of tax under section 10 34 and dividend received from mutual fund investment is exempted under section 10 35 of income tax act.
Notwithstanding the amendments made by this act to the income tax act. Gratuity act 1972 is applicable to an establishment where 10 or more employees are employed during the financial year. Amounts payable by an employer to an employee, but which do not relate to services rendered, are not. Home income tax salary gratuity exemption section 10 10 gratuity exemption section 10 10. According to section 10 of the income tax act 1961, the salaried employees are entitled to enjoy the tax exemption. Exemption when gratuity received under the payment of gratuity act, 1972. In simple terms, scholarship means a grant, achieved on the basis of the academic or other achievement, made in order to. In order to claim the exemption under the section it is necessary that the amount of gratuity should be calculated exactly on the basis laid down in the section.
Tds on salary would also be deducted and the employee can claim credit of the same at the time of filing of income tax return. Those who earn the income from interest are exempted as per the rules of section 10 15. Most income that is exempted from tax is listed under section 10 of the income tax act. Section 10 exemptions under section 10 of income tax act. Please click tap on the exemption type to view hide its content and hide content of other exemption. Any rent or revenue derived from land which is situated in india and is used for. Here are nine incomes you need not pay tax on the economic times. Section 10 of income tax act, exemptions, allowances under sec 10. Tax paid on income does not include salary, royalty, and technical fees by central govt. Income exempted under section 10 of income tax act 1961.
Taxfree incomes agricultural income section 101 as per. This act may be cited as the income tax act, 1973 and shall, subject to the sixth schedule, come into operation on 1st january, 1974, and apply to assessments. Exempted incomes under section 10 indian tax updates. The assessing officer declaimed the claim of the assessee on the following groundsthe payment received by the assessee. The belowmentioned table will show the exact details which come under the sheds of this section of the income tax act. Exemption under section 11 of income tax act, 1961. Exemption under section 10 4ii is available only if such individual is a person resident outside india as defined in clause w of section 2 of the foreign exchange management act, 1999 or is. Click to view the institutions registered under section 80g, 12 a and more. The commissioner of income tax cit a passed an order in favour of the department considering the tax paid by the employer as a monetary benefit in hands of the employees and thereby denying the exemption claimed under section 10 10cc of the act. Allowances exempt under section 10 14i allowances exempt under section 10 14ii the total taxable salary would be computed after reducing the allowances exempt under section 10 and the balance salary would be taxable as per the income tax slabs. The employee is entitled to exemption under section 105 in respect of the. Tax exemption on life insurance policy under section 1010d. Allowances exempted as per income tax act section 10 house rent allowance hra. Agriculture income section 10 1 as per section 10 1, agricultural income earned by the taxpayer in india is exempt from tax.
In computing the total income of a previous year of any person, any income falling within any of the. Scholarship exemption section 1016 income tax act 1961. The present article provides a briefing of the exemption available under section 10 16 understanding the provisions of section 10 16. Income not included in total income us 10 the income tax act 1961 enumerates in section 10, the items of income which are exempt from tax. Top 10 salary allowances exempt under section 10 for a. The assessing officer declaimed the claim of the assessee on the following grounds the payment received by the assessee is an exgratia payment and not a compensation. Gratuity received by a government employee will be fully exempted from income tax. As per section 2 1a, agricultural income generally means. Section 11 of income tax act,1961 provides exemptions for income earned from property held under charitable trustssocieties for the activities carried out on charitable or religious purposes subject to certain terms and conditions. Therefore, it qualified for exemption under section 10 10cc of the act. However, there is still some debate on what exactly constitutes exempt income, and if such income is required to be declared by the taxpayer when filing his or her income tax returns. Find full list of all incomes who completely exempt from income tax. August, 1990 would be eligible for exemption under section 10 4 ii in respect of nre.
Leave salary exemption section 10 10aa rohit agarwal 62018 salary leave a comment if leave salary encashment is received by any employee while in employment then it. Special allowance under section 10 exemption for salaried. The rules of a fund approved for the purposes of income tax act should not permit the payment of gratuity in the form of annuities payable over a specified number of years. Section 10 of the income tax act, 1961, offers a long list of tax exemptions that are made especially for salaried people. The assessee claimed exemption under section 1010b of the income tax act in respect of the above ex gratia amount he received. So, lets understand the list of various exemptions under section 10 of the income tax act, 1961. The remuneration so paid is not liable to be deducted from income of employer chargeable under the income tax act, 1961. Section 10 in the income tax act, 1995 indian kanoon.
Article is been prepared keeping in view the amendments made by finance no. The exemption on hra is covered under section 10 a of the income tax act and rule 2a of the income tax rules. Tax exemption on maturity amount of life insurance policy as per section 10 10d of the income tax act, 1961, any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy is exempt from tax whether received from india or any foreign company. Exemption under section 1010b of income tax act, 1961. Income exempted under section 10 of income tax act 1961 for. Section 10 of the income tax act, 1961 includes those incomes which do not form part of the total income while calculating the tax for an individual. List of all incomes exempted from income tax, list of.
Section 10 1cn of the act the section of the act which provides for the exemption from normal tax of certain receipts and accruals of those public bene. Agricultural income is defined under section 2 1a of the income tax act. Comptroller means the comptroller of income tax appointed under section 31 and includes, for all purposes of this act except the exercise of the powers conferred upon the comptroller by sections 34f9, 37ie7, 37j5, 671a, 95, 96, 96a and 101, a deputy comptroller or. Exemptions under section 10 of the income tax act 5paisa. These allowances are given over an above the salary as a financial benefit to the employee. House rent exemption under section 10a hra exemption. Information about various exemptions available under section 10 of income tax act. Service of notice or documents part iii imposition of income tax division i charge to tax 8. There are several income tax exemptions available under the income tax act and here we will discuss all of the same. Section 10 15 the income earned from interest exempt from the tax. Allowances exempt under section 10 for salaried employees. Tds on salary would also be deducted and the employee can claim credit of the same at the.