What are the Income tax exempted Incomes? How to earn tax free Income in India? How to avail tax exemption?

There are few tax free earning options for the Indian Assessee. Those who want to earn tax free income can chose these options. The tax free earning options are:

 

Interest received from Savings Bank Account? Section 80TTA of Income Tax Act, 1961

Upto amount of Rs. 10,000/- is allowed to be deducted under section 80TTA from taxable income. All the assesses who have earned interest income from savings bank account can claim maximum of Rs. 10,000/- under this section.

 

Long Term Capital Gain from sale of Mutual Fund and Shares - Section 10(38)_of Income Tax Act, 1961

If the assessee paid security transaction tax at the time of purchase of shares, the long capital gain from sale of Equity shares and securities are exemption from payment of capital gain tax.
 

 

 

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.

 

Agricultural Income ? Section 10(1) of Income Tax Act, 1961

Income from agriculture is exempted under section 10(1) of income tax Act 1961. But at the time of computation of income the amount should be shown for rate purpose.

 

Interest on Public Provident Fund Account? Section 10(11) of Income Tax Act, 1961

Amount of Interest received from PPF account is exempted from income tax. It is a tax free income in the hands of those who receive it.  

 

Education Scholarship ? Section 10(16) of Income Tax Act, 1961

Amount of scholarship received for education is exempted from payment of tax in the hands of person who receive it. As per section 10(16) of Income Tax Act, 1961 amount of scholarship for continuing education is tax exempted  and it is not necessary to get the amount financed to get tax exemption.

 

Tax Exempted salary components

Some components of salary like House Rent Allowance (Section 10(13A), Leave Travel Allowance (Section 10(5), Pension Amount (Section 10(10A), Leave Encashment Section 10(10AA) etc are exempted from payment of tax subject to conditions in specific sections.

PAN

Income Tax PAN FAQ, Answers & Guidance

Tax Audit

What is the turn over limit for tax audit? Who needs to get audited the accounts under section 44AB?

Taxation on Charitable Trust and NGO

What is authority structure in case of Charitable Trust, Charitable Society, Non Governmental Organizations (NGO), Section 25 Companies and other exempted institutions?

What is the definition of Charitable Purpose? Section 2(15) of Income Tax Act- Relief to poor, Education, Medical Relief, other public utility services- Latest amendments

How to register with Income tax under Section 12A by NGO, Section 25 Company, Charitable Trust and Society? Is it necessary to Register?

What is approval u/s 80G(5)? Is it necessary for a charitable Institution? How to apply for it? What is the use of approval u/s 80G(5) for Charitable Trust, Charitable Society, Non Governmental Organizations (NGO), Section 25 Companies and other exempted institutions?

Is exemption of Income to NGO, Section 25 Company, Charitable Trust and Society can forfeiture? Provision in Section 13 for forfeiture of Exemption

What is notification u/s 35(1)(ii)/(iii)? How to apply by scientific research association, a university, college or other institutions? What is the use?

What are the modes and forms of Investment specified u/s 11(5) in the case of Charitable Trust, NGO, Charitable Society, Section 25 Companies and Charitable entities

How Charitable Institutions are assessed for Income Tax? Accumulation of surplus and utilization of NGO, Section 25 Company, Charitable Trust and Society

Who are interested persons in the case of Charitable Trust, NGO, Charitable Society, Section 25 Companies and Charitable entities? Who are relatives? List of interested persons and relatives