ITR Alert: Do not take tension even after the last date of filing the return is over, these 10 incomes do not attract Income Tax
Highlights
- The government keeps certain types of income out of the purview of income tax.
- Common people do not have to pay tax on tax free income
- You do not need to file any return on tax free income
ITR Alert: 31 was the last date for those filing tax returns, which has now passed. Now you have the last time to file your return till December 31 with a fine of Rs 1000 to 5000. Generally, every citizen has to compulsorily pay tax on his earnings. But even after this, the government keeps certain types of income out of the purview of income tax, that is, the common people do not have to pay tax on these incomes. In such a situation, even if the tax return date has passed, if your source of income is outside the tax net, then you need not file any return. Let us know about these 10 types of income which are tax free for you:
income from agriculture
The government does not charge tax on income from agriculture. Income from agriculture is exempted from tax under section 1961 of Income Tax. Tax exemption is available on income from agriculture. Taxpayer can get tax exemption by showing income from agriculture in his return.
income from gratuity
A part of the salary of salaried employees is deducted as gratuity. The company pays gratuity to the employee after working for a specified period. Gratuity income is completely tax free.
income from savings account
If the interest earned from the savings account is less than Rs 10,000, then there is no tax to be paid on it. This exemption is also available on interest earned from more than one account. If, you have more than one bank account and they get interest of Rs 10000 and Rs 5000 respectively, then your taxable income will be Rs 5000.
income from voluntary retirement
Income from voluntary retirement up to Rs 5 lakh is tax free. According to Section 2BA of Income Tax, if a person takes voluntary retirement from any company or local authority, then the income from this will get tax exemption of up to Rs 5 lakh.
allowance for foreign services
If, you are in a government job and your appointment is outside the country and any allowance is received in lieu of it, then income tax will not be applicable on it. In section 10(7) of Income Tax, it has been provided that the employees working in government service who are rendering their services abroad and are getting allowances in return for them, then they will be tax free.
share of partnership firm
If, you are a partner in a partnership firm and you own its shares, then as per section 10(2) of the Income Tax, the partner is not liable to pay income tax for the income earned in the firm. Apart from shares, if you take remuneration or other benefits, then this income will come under the purview of taxable income.
provident fund income
According to section 10 (11, 12, 13) of income tax, income tax is not to be paid on such income which comes from PPF, PF or retirement fund.
long term capital gain
Tax exemption is available on long-term capital gains made on investments made in equity or mutual funds. According to section 10(36) of Income Tax, if capital gains are made by selling shares or mutual funds for a period of more than one year, then it is eligible for income tax exemption. However, this is not applicable to debt mutual funds and the income generated from it is taxable.
scholarship or award
There is no income tax on any kind of scholarship or award. Income tax is not charged on the amount received under the scholarship or award under the Income Tax Act 1961. The amount of the scholarship or award has not been fixed.
Senior Citizen Saving Scheme
If you are a senior citizen and you have invested in Senior Citizen Saving Scheme (SSSS), then your principal amount will not be taxed. However, you may have to pay tax on its interest income. Also, keep in mind that you have to mention this in your income tax return as well.
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