Income Tax Exemption: Under the Income Tax Act, there are five such sources of income other than Provident Fund (PF), Employee Provident Fund (EPF), Public Provident Fund (PPF) or National Pension Scheme (NPS), from which income earned No tax is levied.
Income of more than Rs 2.5 lakh in a financial year in the country comes under the tax net. Tax has to be paid not only on the income earned from the job but also from other sources. These include interest income, income from any other business and income from any kind of investment.
Although,Income TaxUnder the law, apart from Provident Fund (PF), Employee Provident Fund (EPF), Public Provident Fund (PPF) or National Pension Scheme (NPS), there are five such sources of income, the income from which is not taxable. Apart from this, income from agriculture also does not come under the purview of tax. That is, whatever the farmer earns from farming, he does not have to pay any tax on it.
wedding gift
Generally, gifts received under the Income Tax Act come under the purview of tax. But, if you get this gift on marriage then 100% tax exemption is available on the income from it. The condition is that the gift is received on or near the date of marriage.
In a normal case, the taxpayer does not have to pay any tax on gifts up to a maximum of Rs 50000 in a financial year, the gift received in excess of this will be added to your income, which will be taxed according to the slab.
profit from partnership company
If you are a partner in a company, then the amount received as share of profits is not taxable. That is, no tax has to be paid on it, because the company has already paid tax on it. This exemption is only on profit, not on salary received.
Scholarship received during studies
Under the Income Tax Act, 100% tax exemption is available on scholarships received during all kinds of studies from school to college level in the country or abroad. Apart from this, no tax has to be paid on scholarships received for studies or research from government or private institutions.
ancestral property from parents
Property (residential or commercial), jewelry and cash received from parents does not attract any tax to the taxpayer. Whether it is received as ancestral property or in any other will. However, if the taxpayer earns money by investing the proceeds or receives income or interest from the property, then he will have to pay tax on the income from these.
Earning up to 20 lakhs from gratuity
If an employee has worked in an organization for five consecutive years or more, then the amount of gratuity received on leaving the job also comes under the purview of tax exemption. Tax is not payable on gratuity amount up to Rs 20 lakh in the case of a government employee and up to Rs 10 lakh in the case of a private company employee.
Calculate correctly before filing return
Investment and tax advisor Sweety Manoj Jain says that before filing returns, taxpayers should calculate taxable income correctly. Under the Income Tax Act, along with PF, PPF, EPF and NPS, income from the above sources is also not taxable. In addition, the amount received on maturity of any insurance policy in 10(10)D is also exempt from tax.
