The Income Tax Department in India does not charge any tax on income earned through certain means. However, it depends on various conditions and limits. Since the time to file income tax return is nearing, it is very important for you to know this.
Non-taxable income: Every income tax payer always looks for ways to save income tax. For this, he adopts other measures ranging from investing in various schemes. But, do you know that there are 6 types of income on which no tax has to be paid. Since the time to file income tax return is nearing, it is very important for you to know this.
Taxpayers have to file ITR according to the tax slab on annual income from job or business. But, there are also provisions for non-taxable income in income tax. Non-taxable income refers to the income which is not subject to income tax.
In the Income Tax Act 1961, income from agriculture has been kept out of the purview of income tax. Income of Hindu undivided family, income from immovable property or income from ancestral property is not taxed.
As per section 56(ii) of the Income Tax Act, gifts including property, money, jewellery, vehicles, etc., gifted by a relative are exempt from tax. However, if someone other than your relative gives something as a gift, it will be exempted only up to Rs 50,000.
Gratuity amount received by government employees on death or retirement is completely tax free. At the same time, private sector employees get exemption on gratuity amount of 10 lakhs received on retirement or termination or disability. As per the Income Tax Act, tax deduction on gratuity is also subject to other limits.
Scholarships given by various institutions to students to complete their education are exempt from tax under the Income Tax Act, as well as pension received by winners of gallantry awards like Mahavir Chakra, Param Vir Chakra, Vir Chakra and other pensioners are exempt from tax. No payment is required.
As per Section 10(15) of the Income Tax Act, certain interest income comes under full tax exemption category. In these, no tax is levied on bank interest received under Sukanya Samriddhi Yojana, interest received on gold deposit bonds, local authority and infrastructure bonds.