Non-taxable income: Everyone who pays income tax is always looking for ways to save tax. For this, investments are made in many schemes. But do you know that you do not have to pay tax on these 5 types of income? This is very important for the purpose of saving ITR.
Every taxpayer has to pay tax on the income derived from his business or employment. This tax is levied on one per cent of his income limit. But income tax also has a provision for non-taxable income. They are kept out of the purview of income tax.
Under the Income Tax Act, 1961, income from agriculture has been kept out of the purview of income tax. Hindu undivided family income, income from immovable property or income from ancestral property is not taxed.
As per section 56(ii) of the Income Tax Act, gifts including property, jewellery, money etc. given by a relative are exempt from tax. However, gift received from a person other than a relative is exempt up to Rs 50,000 only.
The amount of gratuity received after the death or retirement of a government employee is completely tax free. Similarly, the amount of gratuity received by private sector employees on account of retirement or disability is exempt up to Rs 10 lakh. As per the Income Tax Act, tax relief on gratuity depends on other factors as well.
Certain interest on certain income is exempt from tax under section 10(15) of the Income Tax Act. This includes interest earned on Suvarna Vada Yojana, local authority and infrastructure bonds and interest earned under Sukanya Samriddhi Yojana. There is no tax on this.