Income Tax: Not even a rupee tax is levied on these 10 incomes, know this before filing ITR..

Income Tax: As the income increases, the income tax liability increases, so it is necessary to invest to save tax. But there are some sources of income, on which income is not taxed. By understanding and using these sources, we can reduce our tax liability. Let us get information about these sources.

Income from agriculture-

The government does not levy taxes on income from agriculture. Tax exemption has been given on income from agriculture under Section 1961 of Income Tax. Tax exemption is available on income from agriculture. The taxpayer can get tax exemption by showing the income from agriculture in his return.

Senior Citizen Saving Scheme-

If you are a senior citizen and you have invested in the Senior Citizen Saving Scheme (SSSS), then there will be no tax on your principal amount. But, you may have to pay tax on the income from its interest. Also, keep in mind that you will have to mention this in your income tax return as well.

Long-term capital gain-

Long-term capital gain on investment in equity or mutual funds is tax-exempt. Under section 10(36) of the Income Tax Act, if capital gain is made by selling shares or mutual funds in more than one year, then income tax exemption is available on it. However, this does not apply to debt mutual funds and tax has to be paid on the income earned from it.

Allowance for foreign services-
If you are in a government job and your appointment is outside the country and you get any allowance instead of this, then income tax will not be levied on it. Section 10(7) of the Income Tax Act provides that the allowances received by government employees for their services abroad will be tax-free.

Income from gratuity: A part of the salary of salaried employees is deducted as gratuity. The company pays gratuity to the employee after working for a certain period. The income from gratuity is completely tax-free.

Income from voluntary retirement: Up to Rs 5 lakh from voluntary retirement is tax-free. According to Section 2BA of the Income Tax Act, if a person takes voluntary retirement from a company or local authority, then up to Rs 5 lakh tax exemption will be given on the income from this.

Income from savings account-
If the interest received from a savings account is less than Rs 10,000, then no tax is required on it. This exemption is also available on interest received from more than one account. If you have more than one bank account and you get interest of Rs 10,000 and Rs 5,000 respectively on them, then your taxable income will be Rs 5,000.

Share of a partnership firm-
If you are a partner in a partnership firm and you have its shares, then according to section 10(2) of Income Tax, the partner is not liable to pay income tax for the income earned in the firm. Apart from shares, if you take remuneration or other benefits, then this income will come under the purview of taxable income.

Scholarship or award-
There is no income tax on any type of scholarship or award. Under the Income Tax Act 1961, income tax is not levied on the amount received as scholarship or award. The amount of scholarship or award has not been fixed.

Income from Provident Fund -
According to section 10 (11,12,13) ​​of Income Tax, income which is earned from PPF, PF or retirement fund is not taxable.

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