Exempted incomes

Agricultural income and its tax treatment in India fall under Section 10(1) of the Income Tax Act, 1961. Section 10(1) deals with the exemption of agricultural income from income tax. Here’s what you need to know about agricultural income and its tax treatment under Section 10(1): (1). Definition of Agricultural Income: Agricultural income is defined […]

Under Section 10(2) of the Income Tax Act, 1961, the sum received by a member from a Hindu Undivided Family (HUF) out of the family income or out of the income of the impartible estate is exempt from income tax. This exemption is available irrespective of whether the sum is received by way of gift,

According to Section 10(2A), any share of profit received by a partner from a firm is exempt from tax. However, this exemption is subject to certain conditions and limitations. Firstly, the exemption is only applicable if the firm is engaged in a business or profession. If the firm is not involved in any business activity,

Interest on Non-resident (External) Account (NRE) is exempt from income tax in India under Section 10(4)(ii) of the Income Tax Act, 1961. This exemption is available to both individuals and Hindu Undivided Families (HUFs) who are non-residents of India. An NRE account is a type of bank account that can be opened by non-residents of

Under Section 10(4D) of the Income Tax Act, a specified fund is eligible for certain exemptions on its income. This provision aims to encourage investments in specific funds that contribute to the welfare of society. What is a Specified Fund? A specified fund refers to a fund established by the government or any other entity

Section 10(4E) of the Income Tax Act, 1961 provides an exemption from tax on income arising from the transfer of non-deliverable forward (NDF) contracts entered into by a person with an Offshore Banking Unit (OBU) located in an International Financial Services Centre (IFSC). NDF contracts are financial contracts that are settled in cash, rather than

Section 10(4F) specifically applies to income earned by a non-resident from a unit of an International Financial Services Centre (IFSC) in India. An IFSC is a designated area that provides various financial services to residents and non-residents. The exemption under Section 10(4F) is aimed at encouraging the leasing of aircraft in IFSCs and attracting global

Section 10(5) of the Income Tax Act allows for certain tax exemptions on travel expenses provided by an employer to an employee. This provision applies to both domestic and international travel. The purpose of this section is to provide relief to individuals who incur travel expenses as a part of their employment. [Exemption will not

Section 10(6) of the Income Tax Act, 1961 provides an exemption from income tax for certain income received by an individual who is not a citizen of India. Conditions: However, there are certain conditions that need to be fulfilled for this exemption to apply. Firstly, the individual must not be a citizen of India. Secondly,

According to Section 10(7), allowances or perquisites received by an employee outside of India for rendering services outside of India are not considered as income and therefore, are not subject to taxation. This means that if you are an employee who receives allowances or perquisites for work done outside of India, you do not need