List of All Incomes Exempted from Income Tax. Find Full List
of All Incomes who Completely Exempt From Income Tax. Hi Friends After Providing Latest Income Tax Slab Rates for A.Y 2016-17, Today we Provide Complete List of all
incomes Exempt From Income Tax. Like Agriculture Income Completely Exempt under
Sec 10(1) Etc. This list is Very useful for all Tax Payers.
All receipts, which give rise to income, are taxable under the
income-tax Act unless it is specifically provided that it does not form part of
total income. Such incomes which don not form part of total income may also be
called incomes exempt from tax. As per section 10 to 13A, certain incomes are
either totally exempt from tax or exempt up to a certain amount. Therefore,
these incomes, to the extent these are exempt, are not included in the total
income of an assessee for computation of his total income.
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Sections
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Particulars
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10(1)
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Agricultural Income
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10(2)
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Sum received by a member from
HUF
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10(2A)
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Share of profit if a partner
from a firm
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10(4)
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Interest in Non-resident
(External) Account
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10(5)
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Leave travel concession or
assistance received by an individual from his employer subject to certain
conditions being satisfied.
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10(6)
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Remuneration to certain
persons who are not citizens of IndiaIn case of an individual who is not a
citizen of
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10(7)
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Allowances or perquisites
outside
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10(10)
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Death-cum-retirement gratuity
received by an employee subject to certain limits specified
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10(10A)
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Payment in commutation of
pension received by the employees subject to certain limits specified
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10(10AA)
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Leave encashment subject to
certain limits specified
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10(10B)
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Compensation on retrenchment
subject to maximum of ` 5,00,000
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10(10BB)
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Payments under
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10(10BC)
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Compensation received or
receivable on account of any disaster
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10(10C)
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Amount received on voluntary
retirement subject to maximum of ` 5,00,000
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10(10CC)
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Tax on non-monetary
requisites paid by employer
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10(10D)
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Amount received under a Life
Insurance PolicyAny sum received under a life insurance policy, including the
sum allocated by way of bonus on such policy, is wholly exempt from tax.
However, the following sum received are not changed under this section:1.
Any sum received from a policy under section 80DD(3) or section 80DDA(3);
or2. Any sum received under a Keyman Insurance Policy; or3. Premium payable
for any previous year exceeded 10% of sum assured.
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10(11)
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Provident Fund
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10(12)
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Payments from Recognized
Provident Fund
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10(13)
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Any payment from an approved
Superannuation FundAny payment from an approved superannuation fund shall be
exempt provided it is made:i. On death of a beneficiary;ii. To any employee
in lieu of or in communication of an annuity on his retirementiii. By way of
refund of contribution to on the death of a beneficiaryiv. By way of refund
of contribution to an employee on his leaving the service in connection with
which the funds is established otherwise than by retirement at or after a
specified age or on his becoming incapacitated to such retirement
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10(13A)
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House Rent Allowance subject
to certain limits specified
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10(14)
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Notified Special Allowance
subject to certain limits specified
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10(15)
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Interest, premium or bonus on
specified investmentsAny income by way of interest, premium on redemption or
other payment on such securities, bonds, annuity certificates, savings
certificates, other certificates issued by the Central Government and deposits
as the Central Government may, by notify cation in the Official Gazette,
specify in his behalf, subject to such conditions and limits as may be
specified in the said notification e.g. interest on Post Office Saving Bank
account is exempt up to ` 3,500 in case of an individual account, and ` 7,000
In case of a joint account.
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10(16)
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Scholarships granted to meet
the cost of education
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10(17)
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Daily and consultancy
allowance, etc. received by MPs and MLAs
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10(17A)
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Award or Reward given by the
Government
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10(18)
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Pension received by certain
awardees/any member of their families
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10(19)
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Family pension received by
the family members of armed forces personnel killed in action
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10(19A)
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Annual value of one palace of
the ex-rulerThe ‘annual value’ in respect of any one palace which is in the
occupation of an ex-ruler is exempt from tax.
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10(20)
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Income of a local
authorityThe following income of a local authority shall be exempt:i. Income
which is chargeable under the head, ‘Income from house property’,ii. Income
from ‘Capital gains’, oriii. Income from ‘Other sources’, oriv. Income from a
trade or business carried on by it which accrues or arises from the supply of:
a)
Water or electricity within or outside its own jurisdictional area, or
b) Any other commodity or service within its
own jurisdictional area.
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10(21)
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Income of an approved
scientific research association
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10(22B)
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Income of specified news
agency
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10(23A)
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Income of professional
association/institution
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10(23BBH)
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Income of the Prasar Bharti
(Broadcasting Corporation of
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10(23C)
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Income of certain funds of
national importanceAny income received by any person on behalf of the
following is exempt from tax:i. The Prime Minister’s National Relief Fund;
orii. The Prime Minister’s Fund (Promotion of Folk Art); oriii. The Prime
Minister’s Aid to Students Fund; oriv. The National Foundation for Communal
Harmony; or
v.
Any university or other educational institution existing solely by for
educational purposes and not for purpose of profit; or
vi. Any hospital or other institution for the
reception and treatment of persons (i) suffering from
illness or (ii) mental defectiveness or (iii) during convalescence or (iv)
requiring medical attention or rehabilitation, existing solely for
philanthropic purpose and not for payment of profit. The exemption under
clause (v) and (vi) shall be available only to following type of
universities/ hospitals/institutions (hereinafter called institutions).
A. Institutions which are wholly or
substantially financed by the Government, or
B. Institutions whose aggregate annual
receipts do not exceed ` 1crore, or
C. Institutions, other than covered under (A)
and (B) above, which may be approved by the prescribed authority
i.e. Chief Commissioner or Director General of Income-tax
Where approval is granted it shall be a
permanent approval unless it is cancelled or withdrawn.
vii. The provision also empowers the
prescribed authority, on an application, to grant exemption from income tax
by giving approval in respect of:
a. Any
other fund or institution established for charitable purposes, having regard
to its objects and importance throughout
b Any trust or institution,
which is either or wholly for public religious purposes or wholly for public
religious and charitable purposes, and which is administered and
supervised in a manner so as to ensure that its income is Properly applied
for its purposes. [Section 10(23C)(v)]
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10(23D)
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Income of notified mutual
funds
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10(24)
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Income on Trade Union
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10(26)
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Income of a member of
Scheduled Tribe residing in certain specified areas
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10(26AAA)
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Income of a Sikkimese
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10(32)
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Income of minor clubbed in
the hands of a parent after maximum exemption of ` 1,500
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10(34)
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Dividend to be exempt in the
hands of the shareholders
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10(35)
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Income from units to be
exempt in the hands of the unit-holders
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10(37)
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Capital gains on compensation
received on compulsory acquisition of agricultural land situated within
specified urban limits
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10(38)
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Long term capital gain
arising from sale of shares through recognized stock exchange and units sold
through RSE or sold to mutual funds
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10(39)
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Exemption of specified income
from international sporting event held in IndiaAny specified income arising,
from any international sporting event held in India, to the person or persons
notified by the Central Government in the Official Gazette, shall be exempt
if such international sporting event –a) Is approved by the international
body regulating the international sport relating to such event;b) Has
participation by more than two countries;c) Is notified by the Central
Government in the Official Gazette for the purpose of this clause.
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10(43)
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Amount received by an
individual as loan under the reverse mortgage
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10(44)
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Income received by any person
or on behalf of New Pension System Trust
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10(45)
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Notified allowance or
perquisite paid to Chairman/member or retired Chairman/member of U.P.S.C.
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10(46)
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Specified income arising to a
notified body/authority/board/trust commissionAny specified income arising to
a body or authority or Board or Trust or Commission (by whatever namecalled)
which –a) Has been established or constituted by or under a Central, State or
Provisional Act, or constituted by the Central Government or a State
Government, with the object of regulating or administering any activity for
the benefit of the general public;b) Is not chargeable in any commercial
activity; andc) Is notified by the Central Government in the Official Gazette
for the purposes of this clause shall be exempt from income-tax.
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10(47)
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Income of an infrastructure
debt fund
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10(48)
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Exemption in respect of
income received by certain foreign companiesAny income of a foreign company
received in
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10AA
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Special provisions in respect
of newly established Units in Special Economic ZonesEligibility: It is
allowed to all categories of assesses established in Special Economic
ZoneConditions:1. It should not be farmed by the splitting up an
reconstruction of a business already in existence2. It should not be formed by
the transfer of machinery or plant, previously used for any purpose.Following
are the exceptions to this conditions:
a)
Imported machinery never used in
b) Machinery upto 20% of total value can be
second hand
c) Audit report of CA compulsory
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Period for which deduction is
available1. First 5 consecutive years – 100% of profits2. Next 5 consecutive
years – 50% of profits3. Next 5 consecutive years – not exceeding 50% of
profits debited to profit and loss of a/c and creditedto Special Economic
Zone Reinvested Reserve AccountComputation of deduction allow
Profit
of business * ET (Expert Turnover/It (Turnover)
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11
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Income from property held for
charitable or religious purposesFor claiming exemption under section 11, the
following conditions must be satisfied:a) Trust must have been created for
any lawful purposeb) Such trust/institution must be for charitable or religious
purposesc) The property from which income is derived should be held under
trustd) The accounts of the trust/institution should be audited
e)
Trust must get itself registered with the Commissioner of Income-tax
f ) The charitable trust created on or after
1.4.1962 should satisfy the following further conditions:
i. It should not be created for the benefit of
any particular community or caste;
ii. No part of the income of such charitable
trust or institutions should enure directly or
indirectly for the benefit of the settler or other specified persons; and
iii. The property should be held wholly for
charitable purposes.
The following incomes of a religious or
charitable trust or institution are not included in its total income,
provided the above conditions are satisfied:
g) Income from property held under trust
wholly for charitable or religious purposes
h) Income from property held under trust which
is applied in part only for charitable or religious purposes
i) Income from property held under trust which
is applied for charitable purposes outside
j) Voluntary contribution forming part of
corpus, corpus means income in the form of voluntary contribution with a
specific directions
Exemption
Exemption allowed to the extent of income
applied for charitable purpose in
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12
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Income of trusts or
institutions from voluntary contributions also exempt as given above
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12A
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Registration of trust before
the end of the previous year from which exemption is required is compulsory
to claim exemption
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12AA
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Procedure for registration,
“Assessee to apply for registration in Form 10A”
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13A
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Income of political parties.
It should be a registered political partyIn this case the following incomes
are exempt:i. Income under from house propertyii. Income from other
sourcesiii. Income from capital gainsiv. Income from voluntary contribution
provided the name and address of the donor who gives donation of ` 2,00,000
or more is given
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13B
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Income of Electoral Trust
exempt
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