Tax-Free Income: Not even a single rupee tax is levied on these 10 types of income, know the rules of Income Tax..
Income Tax is levied on your entire income. It does not only include salary. Apart from salary, it includes many things like interest from savings, income from home, side business, and capital gains.
If you earn in many other ways apart from salary, then this news is of use. This is because usually income tax is levied on every income. But there are some income sources on which not even a single rupee is taxed. Today we are going to tell you about 10 such income, where not even a rupee is taxed.
There is no tax on these incomes
Agricultural Income
If you have agricultural land and you are earning from farming or related activities, then you do not have to pay any kind of Income Tax on that income. Agricultural income also includes the produce from it, the amount received as rent, etc. If you do farming by making an agricultural farm, then the income from it is also free from Income Tax.
Gifts received at marriage
If you receive gifts from friends or relatives at marriage, then you do not have to pay tax on it. The condition here is that you should have received the gift around the time of your marriage. If your marriage is on 16th March and the gift is given after six months, then you will not get an income tax exemption on it. Also, the value of the gift should not exceed Rs 50,000.
Profit received from partnership firm
If you are a partner in a firm, then the amount you receive as a Share of Profit is exempted from income tax liability. Your partnership firm already pays tax on it. Income tax exemption is only on the profit of the firm, not on the salary you receive.
Earnings from EPF
The amount deposited by you in the PF account is exempted from income tax under Section 80C of the Income Tax Act. The amount deposited by the employer in your EPF account is also exempted from tax. The condition here is that this amount should not exceed 12% of your basic salary. If the amount is more than this, then you will have to pay Income Tax on the remaining amount.
Interest on savings account
If you get interest up to Rs 10,000 in a year from your bank savings account, then you get exemption from income tax on it under section 80TTA of the Income Tax Act. If the interest on the savings account is more than Rs 10,000 annually, then you will have to pay Income Tax on the additional amount.
Amount received on life insurance claim or maturity
If you have purchased a life insurance policy, then the amount received on your behalf while claiming it or on its maturity is completely free from Income Tax. The condition in this is that the annual premium of your life insurance policy should not exceed 10% of its sum assured. If the premium in the life insurance policy is more than this, then you will have to pay income tax on the additional amount. If you have taken a life insurance policy for a disabled or seriously ill person in your family, then the premium amount can be up to 15% of the sum assured.
On providing food and drinks in business
If you are a businessman, then you have to meet many types of people during your business. This includes customers, vendors, and other employees. The cost of providing food and drinks to them is also included in the process of business. You should keep a bill for such expenses and present it as a business expense. If you follow this process, then you can save Income Tax on this amount.
Amount received in VRS
Many people take voluntary retirement (VRS) from their job. If you have also taken VRS, then the amount received by you up to Rs 5 lakh is free from Income Tax. This facility is only for employees working in government or PSU (public sector companies), not for working people in the private sector.
Property received through inheritance or will
If you have also received property, jewelry, or cash as an inheritance from your parents, then you do not have to pay Income Tax on it. If someone has made a will in your name and you have received property or cash from it, then also you do not have to pay income tax on it. You will have to pay tax on future income or interest income from such property as per your tax slab.
Return of up to Rs 1 lakh from shares or equity mutual funds
If you have invested in shares or equity mutual funds, then the return of up to Rs 1 lakh received on selling them after one year is tax-free. This return is calculated under LTCG. In last year's budget, LTCG tax has been imposed on returns of more than Rs 1 lakh received from investments in shares or equity mutual funds.
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