Income that are not taxable
April 23rd, 2010
No comments
| Sl. No. | Nature of Income | Exemption Limit |
| 1 | Agricultural Income | Up to Rs.5000/- fully exempted. Income beyond Rs.5000/- will be considered only for rate purposes |
| 2 | Share of Profit of a Partner from a partnership firm | Fully exempted |
| 3 | Leave Travel Concession received from Employer | Actual Expenses subject to certain conditions |
| 4 | Gratuity received from employer | For Government employees fully exempted from tax. For other employees maximum upto Rs.350000/- subject to certain conditions |
| 5 | Leave salary received from employer at the time of retirement | For Government employees fully exempted from tax. For other employees maximum upto Rs.300000/- subject to certain conditions |
| 6 | Compensation received at the time of Retrenchment | Exemption will be maximum upto Rs.500000/- subject to certain conditions |
| 7 | Compensation received under Voluntary Retirement Scheme | Exemption will be maximum upto Rs.500000/- subject to certain conditions |
| 8 | Any sum including bonus received on life insurance policy | Entire amount is exempted |
| 9 | Amount received from Provident Fund after retirement | Entire amount is exempted |
| 10 | House Rent Allowance received from Employer | Lower of 50/40% of salary, HRA actually received and Excess rent paid over 10% of salary will be exempted |
| 11 | Children Education Allowance received from employer | Up to Rs.100/- per month per child is exempted subject to a maximum of 2 children |
| 12 | Children Hostel Allowance received from employer | Up to Rs.300/- per month per child is exempted subject to a maximum of 2 children |
| 13 | Conveyance Allowance received from employer | Up to Rs.800/- per month is exempted |
| 14 | scholarship granted to meet the cost of education | Entire amount is exempted |
| 15 | Income of Minor | Up to Rs.1500/- is exempted per minor child |
| 16 | Dividends received from Domestic companies | Entire amount is exempted |
| 17 | Dividends received from units of mutual funds | Entire amount is exempted |
| 18 | Long term capital gain on sale of Equity shares where STT paid or units in Equity Oriented Mutual Funds | Entire amount is exempted |
| 19 | Gift received from friends or relatives | Upto Rs.50000/- is exempted |
Categories: Tax Planning
