Section 10(25A) of the Income Tax Act provides a complete tax exemption for any income of the Employees’ State Insurance Fund (ESI Fund). Key Features: Eligible Entity: The Employees’ State Insurance Fund, established under the Employees’ State Insurance Act, 1948. Nature of Exemption: All income of the ESI Fund is exempt from income tax—this includes […]
Section 10(26) of the Income Tax Act provides a tax exemption for members of Scheduled Tribes residing in certain specified areas of India. Who Qualifies: The individual must be a member of a Scheduled Tribe as defined in Article 366(25) of the Constitution. They must be residing in: Areas specified in Part I or II
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Section 10(30) of the Income Tax Act provides a tax exemption for subsidies received by tea growers and manufacturers in India under specific government-notified schemes. Who Qualifies: Any assessee engaged in the business of growing and manufacturing tea in India. What’s Exempt: Subsidies received from or through the Tea Board for: Replantation or replacement of
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Section 10(32) of the Income Tax Act provides a modest exemption when a minor child’s income is clubbed with that of a parent under Section 64(1A). When It Applies: If a minor child earns income (e.g., interest, rent, dividends) and it is clubbed with the income of the parent (typically the one with higher income),
Section 10(34A) of the Income Tax Act provides a tax exemption for shareholders on income received from a buy-back of shares by a domestic company, but only under specific conditions. What’s Exempt: Any income arising to a shareholder from a buy-back of shares by a domestic company is exempt in the hands of the shareholder,
Section 10(37) of the Income Tax Act provides a capital gains exemption for individuals or Hindu Undivided Families (HUFs) on the compulsory acquisition of urban agricultural land. Key Conditions for Exemption: Eligible Person: Only individuals or HUFs can claim this exemption. Nature of Land: The land must be urban agricultural land—i.e., land within or near
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Income from salaries is taxable under Sections 15-17 of the Income Tax Act, 1961. It includes all remuneration received by an employee from an employer in cash or kind, along with certain allowances and perquisites. Below is a structured guide on how to compute taxable salary income. 1. Components of Salary Income [Section 17(1)] Salary includes: ✔ Basic
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Section 15 of the Income Tax Act, 1961 defines what constitutes taxable salary income and specifies the conditions under which such income becomes chargeable to tax. Key Provisions of Section 15 Incomes Taxable as Salary [Section 15(1)] The following incomes are chargeable under the head “Salaries”: Any salary duefrom an employer (current or former) in the previous
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Arrears of salary refer to payments received by an employee for work done in previous financial years but paid in the current year. These payments can significantly increase taxable income, potentially pushing the taxpayer into a higher tax bracket. The Income Tax Act, 1961, provides relief under Section 89(1) to mitigate this additional tax burden. What is
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Section 17(3) defines “profits in lieu of salary” as payments received by an employee in connection with termination of employment or as compensation for any modification in employment terms. These amounts are taxable under the head “Salaries” even if they don’t strictly qualify as salary. Key Components of Profits in Lieu of Salary Termination Payments
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