Non-Taxable Income: There is no tax on these 5 types of income, note this before filing ITR
Some rules have been made regarding income tax in India, under which no tax is levied on earning up to a certain limit. But if you are getting more income than that limit, then you will have to file an income tax return according to the tax slab. However, some incomes have been kept out of the scope of income tax. The last date for filing ITR is 31 July. In such a situation, if you have not filed an ITR yet, then know about such 5 types of income that are considered non-taxable in India.
Under Section 10 (1) of Income Tax, income from agriculture is completely tax-free. This includes the production, processing, and distribution of wheat, rice, pulses, and fruits. Apart from this, if any of your property is being used for agricultural work, then the rent received from it is also tax free. Not only this, the income from the purchase and sale of agricultural land is also non-taxable.
If your relatives and close relations give you gifts, then tax is not levied on them. Husband-wife, brother-sister, brother or sister of husband/wife, brother or sister of mother/father i.e. aunt, maternal uncle, paternal uncle, grandparents, grandparents of husband/wife, son or daughter and husband or wife of brother/sister are included in the list of close relatives. If they give you gifts, then it does not come under the purview of tax. Apart from this, gifts received on the occasion of marriage are tax-free, no matter what their amount is. If a friend or acquaintance of yours gives you a gift of up to Rs 50,000, then it remains tax-free, but if he gives a gift of more than this, then it comes under the purview of tax.
Gratuity received after the death or retirement of a government employee is completely tax-free. According to the rules of Gratuity Payment Act 1972, private sector employees do not have to pay tax on retirement up to a maximum of Rs 20 lakh.
Scholarships are given to students in many institutions to complete their studies. These scholarships are tax free. On voluntary retirement, the amount received up to Rs 5 lakh is tax free.
Winners of gallantry awards like Mahavir Chakra, Param Vir Chakra, Vir Chakra do not have to pay any tax on the pension received. The pension received by the family members of the Indian Armed Forces is also tax free.
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