ITR Filling: Do you know that there is no tax on these 10 incomes...
Paying tax is a symbol of a person's responsibility towards his country. This time too, everyone must have filed their ITR by now or some are still left. But for your information, let us tell you that the last date for filing an income tax return this year is 31st July. If you are also preparing to file your return, then you need to know which income is taxed and which is not (incomes exempted from taxes). By knowing this, you will not only be able to fill your return correctly but will also save tax. Today we are telling you those 10 incomes on which you do not have to pay income tax. Let's know about them (non-taxable incomes).
Interest income from NRE accounts
NRE accounts offer benefits like tax-free interest on NRE deposits. NRIs can also transfer money to their native place through NRE accounts.
Agricultural Income
Income from agriculture in India is completely exempt from income tax. This exemption is not only on the sale of crops but also includes rent received from agricultural land or buildings and profits from buying or selling agricultural land.
Tax-free pensions
Pensions from certain organizations, such as the UNO, are exempt from tax. Family pensions received by dependents of employees are also tax-free.
No tax on Provident Fund
Provident funds, and mandatory savings schemes for companies registered under the Companies Act, 1956 in India, increase with age and become tax-free on your retirement from the job. The Employees Provident Fund offers tax-free returns, provided the employee has actively contributed for more than 5 years, even if they have changed employers during this period.
Gratuity
In the private sector, employees receiving gratuity amounts up to Rs 20 lakh on retirement do not need to pay income tax.
Capital gains are tax-free.
Some capital gains are also tax-free. Individuals receiving compensation instead of urban agricultural land do not have to pay income tax.
Profit from partnership firm...
Under the Income Tax Act, the income of a partnership firm is taxed at the entity level. Partners working for the firm do not pay income tax as they get a share of the profit after paying taxes.
Scholarship
Students receiving scholarships from government and private institutions for studies are given income tax exemptions.
No tax on voluntary retirement
The amount received on voluntary retirement before retirement is tax-free up to Rs 5 lakh. Gifts received from relatives or on the occasion of marriage are also tax-free.
Allowances or any compensation are not taxable.
Certain allowances are exempt from tax for any person in India. For example, foreign allowance provided by the Government of India to its employees working abroad is tax-free. Additionally, compensation received from Public Sector Undertaking (PSU) companies on voluntary retirement is also tax-free.
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