Tax Free Income: No tax has to be paid on this income, you should also know about it..
Nowadays most people earn in many ways, so it becomes important to know on which income you have to pay income tax and on which not. Today we will tell you about non-taxable income.
Non-taxable income is the income on which you do not have to pay tax. When you calculate your income tax liability, you can exclude income from some sources. There are many sources of non-taxable income in India. Non-taxable can help you manage your finances better and reduce your tax burden.
If you get any wealth, jewelry, or cash as an inheritance from your parents, then you do not have to pay any tax. If there is a will in your name, then you do not have to pay tax on the amount received through it. However, you will have to pay tax on the income from whatever property you have. (Image: Canva)
If you have a life insurance policy, then the money you get when the policy matures is non-taxable. This means you don't have to pay any tax on it. However, the annual premium (the amount you pay every year for the policy) should not exceed 10% of the sum assured (the price of the policy). If it is more, you will have to pay tax on the excess amount.
According to the Income Tax Act, gifts received from blood relatives, such as property, jewelry, or money, are not taxable. Gifts received from non-relatives are tax-free only up to Rs 50,000. Property or gifts inherited from a Hindu Undivided Family (HUF) are also tax-free.
If you make money from farming or related activities on your agricultural land, this income is tax-free. This also includes income from buying and selling agricultural land.
Gratuity is also tax-free. It is the amount given to employees on retirement or as a death benefit. Gratuity is completely tax-free for government employees. Gratuity up to Rs 10 lakh is tax-free for private sector employees.
As per Section 10(15) of the Income Tax Act, income from Sukanya Samriddhi Yojana, local authority infrastructure bonds, and gold deposit bonds is also tax-free.
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