Tax Free Income: Income from these sources is tax free, know terms and conditions

Every citizen of India whose annual income is more than 2.5 lakh rupees, then he comes under the income tax net. But there are some sources of income from where the income is not covered by income tax. However, some conditions also apply with them. Today we will tell you about tax free income tax.

Income from agriculture is completely tax free.  If you are a partner in a firm, then the amount received as share of profit is tax free, as the company has already paid tax on it. Keep in mind that tax exemption is only on profit and not on salary.

गिफ्ट

  • The gifts you receive are subject to tax. Gifts received by the taxpayer are taxable under section 56(2)(x) of the Income Tax Act, 1961.
  • If gifts received by you on marriage from friends and relatives, then they will not be taxed. These gifts (movable and immovable property) should not exceed Rs 50000. Along with this, these gifts should be received on or near the date of marriage.

According to the Income Tax Act, if a gift is received from certain people or relatives, then it is not taxed  even if they are more than Rs 50000. Know who those special people are.

  • Gift from husband or wife
  • Gift from brother or sister
  • Gift from brother or sister of spouse
  • Parents Gift or property received from a brother or sister of one’s brother or sister
  • Gift or property by inheritance
  • Gift from any immediate ancestor or descendant of spouse
  • Hindu Undivided Gift received from any member in case of family (HUF)
  • Gift received from local authority such as Panchayat, Municipality, Municipal Committee and District Board, Cantonment Board
  • Section 10 (23C) Gift from any Fund/Foundation/University or other Educational Institution, Hospital or other Medical Institution, Trust or Institution as mentioned in
  • Gift from any charitable or religious trust registered under section 12A or 12AA

ग्रेच्युटी राशि

  • Gratuity is available to an employee who leaves the job after working for 5 consecutive years in an organization.
  • Gratuity is exempt from tax.
  • Government employee Gratuity up to Rs.20 lakh is tax free.
  • Gratuity up to Rs.10 lakh is tax free in case of private employee.

EPF 

  • After working for 5 consecutive years, if the employee withdraws his Employee Provident Fund (EPF), then it will be tax free.

VRS में मिली रकम

  • The amount received on taking Voluntary Retirement (VRS) before retirement of a government employee will be tax free up to Rs 5 lakh. However, this facility is available only to government employees.

PPF अमाउंट और 

  • The money invested in Public Provident Fund (PPF), the interest earned and the maturity amount are all tax free.

NRE Savings/FD Account Interest

  • Interest received by NRI on NRE (Non Resident External) account is tax free in India. This includes interest earned on both NRE savings account and NRE FD accounts.

​HUF से मिली रकम

  • Amount received by way of inheritance or income from Hindu Undivided Family (HUF) is also exempt from tax under section 10(2) of the Income Tax Act.

Educational Scholarship

  • Scholarship received from government or private organizations for study or research is tax free.
  • All types of educational scholarships (from school to college level and received while studying abroad) are taxable. is out.

Money, jewelry and property received from parents

  • Property, jewelry or cash inherited from parents or family is exempt from tax.
  • Property or cash received through bequest is also not taxable.
  • Keep in mind that the Income Tax Department may question the taxpayer regarding this transaction.
  • If this happens, the taxpayer will have to prove that the amount or property belongs to his parents, will or family. Received by way of inheritance.
  • If the taxpayer earns by investing the amount received or receives income or interest from the property, then he will have to pay tax on the income from these.

 

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