Exempted incomes

Agricultural Income [Section 10(1)]

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 […]

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Share of Profit of a Partner from a Firm [Section 10(2A)]

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,

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Interest on Non-resident (External) Account [Section 10(4)]

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

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A Exemption of certain income received by a Specified Fund [Section 10(4D)]

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

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Exemption of income of a Non-Resident as a result of transfer of non-deliverable forward contracts entered into with an offshore banking unit of International Financial Services Centre (IFSC) [Section 10(4E)] [Inserted W.e.f. A.Y. 2022-23]

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

Exemption of income of a Non-Resident as a result of transfer of non-deliverable forward contracts entered into with an offshore banking unit of International Financial Services Centre (IFSC) [Section 10(4E)] [Inserted W.e.f. A.Y. 2022-23] Read More »

Exemption of income of a non-resident by way of royalty or interest on account of lease of an aircraft paid by a unit of an International Financial Services Centre (IFSC) [Section 10(4F)] [Inserted W.e.f. A.Y. 2022-23]

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

Exemption of income of a non-resident by way of royalty or interest on account of lease of an aircraft paid by a unit of an International Financial Services Centre (IFSC) [Section 10(4F)] [Inserted W.e.f. A.Y. 2022-23] Read More »

Travel Concession or Assistance received by an individual from his Employer [Section 10(5)]

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

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Remuneration to Persons who are not Citizens of India [Section 10(6)]

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,

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Allowances or Perquisites outside India [Section 10(7)]

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

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