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    Oct 14, 2015

    Income exempted from Income Tax Section 10

    Section 10 of income tax act defines that some income are exempted from income tax means there is no income tax on these income. Some of these income are fully exempted from income tax and some are some exemption limit.

    Like agriculture income is fully exempted from income tax whereas minor income clubbed with individual has the exemption limit of 1500. So it is neccessary to remember all these exemptions before calculating somebody income tax.

    So i am presenting a full view of section 10 of income tax act with all the exemptions and exemptions limit of section 10.

    Section
    Nature of Income
    Exemption limit, if any
    10(1)
    Agricultural income

    10(2)
    Share from income of HUF

    10(2A)
    Share of profit from firm

    10(3)
    Casual and non-recurring receipts
    Winnings from races Rs.2500/- other receipts Rs.5000/-
    10(10D)
    Receipts from life Insurance Policy

    10(16)
    Scholarships to meet cost of education

    10(17)
    Allowances of MP and MLA.
    For MLA not exceeding Rs. 600/- per month
    10(17A)
    Awards and rewards

    (i) from awards by Central/State Government


    (ii) from approved awards by others


    (iii) Approved rewards from Central & State Governments


    10(26)
    Income of Members of scheduled tribes residing in certain areas in North Eastern States or in the Ladakh region.
    Only on income arising in those areas or interest on securities or dividends
    10(26A)
    Income of resident of Ladakh
    On income arising in Ladakh or outside India
    10(30)
    (i) Subsidy from Tea Board under approved scheme of replantation

    10(31)
    (ii) Subsidy from concerned Board under approved Scheme of replantation

    10(32)
    Minors income clubbed with individual
    Upto Rs. 1,500/-
    10(33)
    Dividend from Indian Companies, Income from units of Unit Trust of India and Mutual Funds, and income from Venture Capital Company/fund.

    10(A)
    Profit of newly established undertaking in free trade zones electronic hardware technology park on software technology park for 10 years (net beyond 10 year from 2000-01)

    10(B)
    Profit of 100% export oriented undertakings manufacturing articles or things or computer software for 10 years (not beyond 10 years from 2000-01)

    10(C)
    Profit of newly established undertaking in I.I.D.C or I.G.C. in North-Eastern Region for 10 years

    Income From Interest


    10(15)(i)(iib)(iic)
    Interest, premium on redemption or other payments from notified securities, bonds, Capital investment bonds, Relief bonds etc.
    To the extent mentioned in notification
    10(15)(iv)(h)
    Income from interest payable by a Public Sector Company on notified bonds or debentures

    10(15)(iv)(i)
    Interest payable by Government on deposits made by employees of Central or State Government or Public Sector Company of money due on retirement under a notified scheme

    10(15)(vi)
    Interest on notified Gold Deposit bonds

    10(15)(vii)
    Interest on notified bonds of local authorities

    Income from Salary


    10(5)
    Leave Travel assistance/ concession
    Not to exceed the amount payable by Central Government to its employees
    10(5B)
    Remuneration of technicians having specialised knowledge and experience in specified fields (not resident in any of the four preceding financial years) whose services commence after 31.3.93 and tax on whose remuneration is paid by the employer
    Exemption in respect of income in the from of tax paid by employer for a period upto 48 months
    10(7)
    Allowances and perquisites by the government to citizens of India for services abroad

    10(8)
    Remuneration from foreign governments for duties in India under Cooperative technical assistance programmes. Exemption is provided also in respect of any other income arising outside India provided tax on such income is payable to that Government.

    10(10)
    Death-cum-retirement Gratuity-

    (i) from Government


    (ii) Under payment of Gratuity Act 1972
    Amount as per Sub-sections (2), (3) and (4) of the Act.

    (iii) Any other
    Upto one-half months salary for each year of completed service.

    10(10A)
    Commutation of Pension-

    (i) from government, statutory Corporation etc.


    (ii) from other employers
    Where gratuity is payable value of 1/3 pension. Where gratuity is not payable value of 1/2 pension

    (iii) from fund set up by LIC u/s 10(23AAB)


    10(10AA)
    Encashment of unutilised earned leave

    (i) from Central or State government


    (ii) from other employers
    Upto an amount equal to 10 months salary or Rs. 1,35,360/- which ever is less

    10(10B)
    Retrenchment compensation
    Amount u/s. 25F(b) of Industrial Dispute Act 1947 or the amount notified by the government, whichever is less.
    10(10C)
    Amount received on voluntary retirement or termination of service or voluntary separation under the schemes prepared as per Rule 2BA from public sector companies, statutory authorities, local authorities, Indian Institute of Technology, specified institutes of management or under any scheme of a company or Co-operative Society
    Amount as per the Scheme subject to maximum of Rs. 5 lakh
    10(11)
    Payment under Provident Fund Act 1925 or other notified funds of Central Government

    10(12)
    Payment under recognised provident funds
    To the extent provided in rule 8 of Part A of Fourth Schedule
    10(13)
    Payment from approved Superannuation Fund

    10(13A)
    House rent allowance
    least of-
    (i) actual allowance


    (ii) actual rent in excess of 10% of salary


    (iii) 50% of salary in Mumbai, Chennai, Delhi and Calcutta and 40% in other places


    10(14)
    Prescribed [See Rule 2BB (1)] special allowances or benefits specifically granted to meet expenses wholly necessarily and exclusively incurred in the performance of duties
    To the extent such expenses are actually incurred.
    10(18)
    Pension including family pension of recipients of notified gallantry awards

    Exemptions to Non-citizens only


    10(6)(i)(a) and (b)
    (i) passage money from employer for the employee and his family for home leave outside India

    (ii) Passage money for the employee and his family to Home country after retirement/termination of service in India.


    10(6)(ii)
    Remuneration of members of diplomatic missions in India and their staff, provided the members of staff are not engaged in any business or profession or another employment in India.

    10(6)(vi)
    Remuneration of employee of foreign enterprise for services rendered during his stay in India in specified circumstances provided the stay does not exceed 90 days in that previous year.

    10(6)(xi)
    Remuneration of foreign Government employee on training in certain establishments in India.

    Exemptions to Non-resident Indians (NRIs) only


    11.2
    The units purchased by them are out of the amount remitted from abroad or from their Non-resident (External) Account

    Exemptions to funds, institutions, etc.


    Section
    Nature of Income
    Exemption limit, if any
    10(14A)
    Public Financial Institution from exchange risk premium received from person borrowing in foreign currency if the amount of such premium is credited to a fund specified in section 10(23E)

    10(15)(iii)
    Central Bank of Ceylon from interest on securities

    10(15)(v)
    Securities held by Welfare Commissioners Bhopal Gas Victims, Bhopal from Interest on securities held in Reserve Banks SGL Account No. SL/DH-048

    10(20)
    any local Authority
    (a) Business income derived from Supply of water or electricity any where. Supply of other commodities or service within its own jurisdictional area.
    (b) Income from house property, other sources and capital gains.


    10(20A)
    Housing or other Development authorities

    10(21)
    Approved Scientific Research Association

    10(23)
    Notified Sports Association/ Institution for control of cricket, hockey, football, tennis or other notified games.

    10(23A)
    Notified professional association/institution
    All income except from house property, interest or dividends on investments and rendering of any specific services
    10(23AA)
    Regimental fund or Non-public fund

    10(23AAA)
    Fund for welfare of employees or their dependents.

    10(23AAB)
    Fund set up by LIC of India under a pension scheme

    10(23B)
    Public charitable trusts or registered societies approved by Khadi or Village Industries commission

    10(23BB)
    Any authority for development of khadi or village industries

    10(23BBA)
    Societies for administration of public, religious or charitable trusts or endowments or of registered religious or charitable Societies.

    10(23BBB)
    European Economic Community from Income from interest, dividend or capital gains

    10(23BBC)
    SAARC Fund

    10(23C)
    Certain funds for relief, charitable and promotional purposes, certain educational or medical institutions

    10(23D)
    Notified Mutual Funds

    10(23E)
    Notified Exchange Risk Administration Funds

    10(23EA)
    Notified Investors Protection Funds set up by recognised Stock Exchanges

    10(23FB)
    Venture capital Fund/ company set up to raise funds for investment in venture Capital undertaking
    Income from investment in venture capital undertaking
    10(23G)
    Infrastructure capital fund, or infrastructure capital company
    Income from dividend, interest and long term capital gains from investment in approved infrastructure enterprise
    10(24)
    Registered Trade Unions
    Income from house property and other sources
    10(25)(i)
    Provident Funds
    Interest on securities and capital gains from transfer of such securities
    10(25)(ii)
    Recognised Provident Funds

    10(25)(iii)
    Approved Superannuation Funds

    10(25)(iv)
    Approved Gratuity Funds

    10(25)(v)
    Deposit linked insurance funds

    10(25A)
    Employees State Insurance Fund

    10(26B)(26BB) and (27)
    Corporation or any other body set up or financed by and government for welfare of scheduled caste/ scheduled tribes/backward classes or minorities communities

    10(29)
    Marketing authorities
    Income from letting of godown and warehouses
    10(29A)
    Certain Boards such as coffee Board and others and specified Authorities

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