Souces of Income exempt from IncomeTax

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Souces of Income exempt from Income tax
The taxation matters in India are governed by the Income Tax law that includes the Income Tax Act 1961, Income Tax Rules 1962, Notifications and Circulars issued by Central Board of Direct Taxes (CBDT), Annual Finance Acts and Judicial pronouncements by Supreme Court and High Courts. For that matter, certain sources of income are exempt from tax in India. The list including few such sources of income, the extent of amount to which the exemption is provided, eligible assessees and the section governing such ruling is provided for assessees know-how to avail the benefits of the same.
Nature of Income Eligible Assessees Amount of such exemption Section
Agriculture Income Any assessee Entire amount of such income 10 (1)
Amount received out of family income, or in case of impartible estate, amount received out of income of family estate Individual as a member of HUF Entire Amount 10(2)
Income received as share of profit from total income of the firm Partner of the firm Entire Amount 10 (2A)
Premium or interest on securities or bonds provided by central govt. before 1st June, 2002 Non-resident assessee Entire Amount

10 (4i)


Interest received on non-resident (External) account in any bank in India. An individual being non-resident as defined under section 2(q) of FERA, 1973 Entire Amount 10 (4ii)
Interest on specified savings certificates
non-resident individual who is of Indian Origin or an Indian citizen Entire Amount 10 (2A)
Income received as share of profit from total income of the firm Non-resident assessee Entire Amount 10 (2A)
Income received as share of profit from total income of the firm Non-resident assessee Entire Amount 10 (2A)
Income received as share of profit from total income of the firm Non-resident assessee Entire Amount 10 (2A)
Income received as share of profit from total income of the firm Non-resident assessee Entire Amount 10 (2A)
Income received as share of profit from total income of the firm Non-resident assessee Entire Amount 10 (2A)
Income received as share of profit from total income of the firm Non-resident assessee Entire Amount 10 (2A)
Income received as share of profit from total income of the firm Non-resident assessee Entire Amount 10 (2A)
Income received as share of profit from total income of the firm Non-resident assessee Entire Amount 10 (2A)
Income received as share of profit from total income of the firm Non-resident assessee Entire Amount 10 (2A)

Read more about: tds, tax, income exempt from tax
Story first published: Friday, July 5, 2013, 12:33 [IST]
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