Tax Ready Reckoner

Section 10(16) of the Income Tax Act, 1961 provides exemption from income tax for scholarships granted to meet the cost of education. This exemption is available to all taxpayers, including individuals, Hindu Undivided Families (HUFs), companies, and partnerships. To be eligible for exemption under Section 10(16), the scholarship must be granted by a recognized educational […]

Being a Member of Parliament (MP) or a Member of Legislative Assembly (MLA) is a position of great responsibility. These elected representatives play a crucial role in shaping the laws and policies of our country. To support them in carrying out their duties effectively, MPs and MLAs are entitled to various allowances, including daily and

Under Section 10(17A) of the Income Tax Act, any award or reward received by an individual in recognition of their exceptional work or achievements is exempt from income tax. The following are the types of awards and rewards that are exempt from income tax under Section 10(17A): Awards and rewards instituted by the Central Government

Under Section 10(18) of the Income Tax Act, certain awardees and their family members are eligible for tax exemption on the pension received. This provision is applicable to individuals who have been awarded with the Param Vir Chakra, Maha Vir Chakra, or Vir Chakra, which are the highest gallantry awards in India. The pension received

Section 10(19) of the Income Tax Act provides an exemption for the family pension received by the family members of Armed Forces personnel who have been killed in action. This exemption is also applicable to the family members of para-military forces personnel who have been killed in action. When a member of the Armed Forces

Section 10(19A) of the Income Tax Act, 1961, exempts the annual value of one palace in the occupation of a former ruler from tax. However, if the palace is let out, the income from the rental is taxable. The term “palace” is not defined in the Income Tax Act, but it is generally understood to

Section 10(20) of the Income Tax Act, 1961 provides exemption from income tax for the income of a local authority. A local authority is defined as any person or body of persons constituted by or under any law enacted by Parliament or by a State Legislature for the purpose of local government, or for the

An approved research association refers to an organization that is primarily engaged in scientific research. It can be a university, college, or any other institution that is recognized by the government as a research association for the purposes of Section 10(21). To be approved, the association must meet the following criteria: It must be a

Section 10(22B) of the Income Tax Act, 1961, exempts the income of a specified news agency from tax. To be eligible for this exemption, the news agency must be notified by the Central Government in the Official Gazette. The income of a specified news agency includes income from all sources, such as: Subscription fees Advertising

Section 10(23C) of the Income Tax Act, 1961 provides for the exemption of income of certain funds of national importance. This provision aims to encourage and support organizations that are engaged in activities of national importance and are working towards the welfare of the society. Funds eligible for Exemptions: Any income received by any person