Gross Total Income

Purpose: This section provides a full tax exemption on any scholarship granted to meet educational expenses, whether received from the government, a trust, a university, or any other institution. Key Conditions for Exemption: ✅ Must be a genuine scholarship (not disguised income or salary). ✅ Must be used for education-related expenses (tuition, books, accommodation, etc.). ✅ No monetary limit – the entire scholarship amount is […]

Purpose: This section provides full tax exemption on certain allowances received by: Members of Parliament (MPs) Members of Legislative Assembly (MLAs) Members of Legislative Council (MLCs) The exemption covers daily allowances and constituency allowances but not salaries. Types of Exempt Allowances: Daily Allowance– Paid when MPs/MLAs attend Parliament/Assembly sessions. Constituency Allowance– For expenses related to their electoral constituency. Example 1:

Purpose: This section provides a tax exemption on payments received as awards, rewards, or prizes from: Central/State Government Approved bodies/institutions(as notified by the government) The exemption applies only if the award is approved by the government and given in public interest (e.g., for achievements in science, arts, sports, etc.). Key Conditions for Exemption: ✅ Must be a government-approved award (private awards are taxable). ✅ No monetary

Purpose: This section provides a full tax exemption on pension received by government employees (or their families) who have been awarded gallantry awards by the Central/State Government. Key Conditions for Exemption: ✅ Applicable to: Gallantry award winners(e.g., Param Vir Chakra, Maha Vir Chakra, Vir Chakra, etc.) Family pensionreceived by their dependents (if the awardee is deceased) ✅ No monetary limit – Entire

Purpose: This section provides a tax exemption on family pension received by the widow or children of a deceased member of the armed forces (Army, Navy, Air Force, or Paramilitary Forces). Key Conditions for Exemption: ✅ Applicable to: Family pensionreceived by the widow, children, or dependent heirs of a deceased armed forces member. Only for armed forces personnel(not civilians or non-military government

Purpose: This section provides a full tax exemption on the income of local authorities, such as municipalities, panchayats, and other governing bodies, to support public welfare and governance. Key Conditions for Exemption: ✅ Applicable to: Municipal Corporations(e.g., BMC, NDMC) Municipalities Panchayats(Village Councils) Port Trusts Other legally recognized local governing bodies ✅ Exemption Covers: Property taxes, water charges, fees, and other

Purpose: This section provides a full tax exemption on income earned by scientific research associations that are approved by the government. The goal is to promote scientific research in India. Key Conditions for Exemption: ✅ Must be an approved scientific research association (recognized by the Department of Science & Technology (DST) or Prescribed Authority). ✅ Income must be applied solely for research purposes (not for personal profit). ✅ Exemption

Purpose: This section provides a full tax exemption on income earned by approved news agencies that operate for the collection and distribution of news, provided they meet certain conditions. Key Conditions for Exemption: ✅ Must be an Indian news agency (not foreign). ✅ Must be approved by the Central Government (Ministry of Information & Broadcasting). ✅ Income must be solely from news collection/distribution (not from advertisements

Purpose: This section provides tax exemption to professional associations (like medical councils, bar councils, etc.) that promote art, science, or education, provided they meet certain conditions. Key Conditions for Exemption: ✅ Must be an association/institution (not a business). ✅ Must be approved by the Central Government (e.g., Indian Medical Association, Bar Council of India). ✅ Income must be used solely for promoting its objectives (not for

Section 10(23AA) of the Income Tax Act provides an exemption for income received by any person on behalf of a regimental fund or non-public fund established by the armed forces of the Union for the welfare of past or present members of such forces. Example: Let’s say the “Bravehearts Welfare Trust” is a non-public fund