Tax Ready Reckoner

Section 10(1) of the Income Tax Act, 1961, provides a full exemption for agricultural income, meaning it is not taxable under the central income tax laws. However, some state governments may levy taxes on agricultural income under their own laws. What is Agricultural Income? Agricultural income is defined under Section 2(1A) and includes: Rent or Revenue from Agricultural Land Income from leasing agricultural land in India. Example: A

Section 10(2) of the Income Tax Act, 1961, provides a tax exemption for sums received by a member of a Hindu Undivided Family (HUF) out of the family’s income or from an impartible estate. This exemption is based on the principle that HUF members have a pre-existing right to the family’s income, so such receipts are not considered taxable income . Key Conditions for Exemption Under

Section 10(2A) of the Income Tax Act, 1961 in India exempts a partner’s share in the total income of a partnership firm from income tax in the hands of the partner. This provision ensures that the income of the firm, which is already taxed at the firm level, is not taxed again in the hands

Section 10(4) of the Income Tax Act, 1961 in India provides an exemption for certain types of interest income earned by non-residents or individuals who are not ordinarily resident in India. This section aims to encourage foreign exchange inflows and provide tax relief on specific interest earnings from designated accounts or investments. Provisions of Section

Section 10(4B) of the Income Tax Act, 1961 in India provides an exemption for interest income earned by a non-resident Indian (NRI) or a person who is not ordinarily resident on certain savings certificates issued by the Central Government. This provision encourages NRIs to invest in specified savings instruments while ensuring that such income is

Section 10(4C) of the Income Tax Act, 1961 in India provides an exemption for interest income earned by a non-resident on specific bonds or debentures issued by certain Indian companies or public sector companies. This provision aims to incentivize foreign investment in designated debt instruments by exempting the interest income from tax in India. Provisions

Section 10(4D) of the Income Tax Act, 1961 in India provides an exemption for certain income earned by specified funds on the transfer of capital assets or other income, such as dividends or interest, derived from securities held by the fund. This provision was introduced to facilitate the operations of specified funds, particularly those established

Section 10(4E) of the Income Tax Act, 1961 in India provides an exemption for income earned by a non-resident from the transfer of non-deliverable forward contracts (NDFs) or income from offshore derivative instruments (ODIs) entered into with an offshore banking unit in an International Financial Services Centre (IFSC). This provision, introduced to promote financial activities

Section 10(4F) of the Income Tax Act, 1961 in India provides an exemption for income earned by a non-resident by way of royalty or interest on account of the lease of an aircraft or an aircraft engine to an Indian company or entity engaged in the business of operating aircraft. This provision was introduced to