Agriculture Income

Agricultural income earned by individuals in India is exempt from tax. Any rent or any income derived from land is also eligible for Income tax rebate.

Leave salary

Leave encashment by an employee at the time of retirement is exempt from tax. The maximum amount as specified by the Government is Rs 3,00,000.

Travel Consession

An employee can claim exemption under section 10(5) in respect of Leave Travel Concession. Exemption is available in respect of value of any travel concession or assistance received or due to the employee from his employer for himself and his family members.

Life Insurance Policy

Any amount received under a life insurance policy, including bonus is exempt from tax. Note, that exemption is available only in respect of amount received from life insurance policy.

Pension

Any commuted pension, which is a accumulated pension in lieu of monthly pension received by a Government employee is fully exempt from tax.
If the employee receives gratuity, the commuted value of 1/3 of the pension is exempt, otherwise, the commuted value of ½ of the pension is exempt.

Saving Bank Interest income

The interest earned on savings accounts is exempt up to the limit of Rs 10,000. This amount is not included in Gross Total Income for the purpose of Income Tax.

Share of profit received by a partner

Share of profit received by a partner from a firm is exempt from tax in the hands of the partner. This exemption is limited only to share of profit and does not apply to interest on capital and remuneration received by the partner from the firm/LLP.

Dividend Income

Any income received in the form of dividend by investment in stocks or mutual funds is tax free in the hands of investors.

Long-term Capital Gains income

Any income arising from the transfer of a long-term capital asset will not attract income tax. However, these transactions are subject to securities transaction tax.

HUF Income

Any amount received out of HUF family income, or in case of impartible estate, amount received out of income of family estate by any member of such HUF is exempt from tax.