Income Tax News: Every taxpayer searches for methods to reduce their income tax liability. He takes additional steps to address this, such as investing in different schemes. However, did you know that there are six categories of income for which there is no tax liability? It is crucial that you are aware of this since the deadline for filing your income tax return is drawing near.
Navigating Tax Slabs and ITR Filing
According to the tax slab on their yearly income from a job or business, taxpayers must file an ITR. However, income tax also has provisions for non-taxable income. Income that is not liable to income tax is referred to as non-taxable income.
Agriculture Income Exemption
Agriculture-related income is exempt from income tax under the Income Tax Act of 1961. Income from immovable property, income from ancestral property, and income from Hindu undivided families are all exempt from taxes.
Limitations on Non-Relative Gifts
Under the Income Tax Act’s section 56(ii), gifts from relatives are tax-free and can include cash, jewellery, cars, and other items. It will only be exempt up to Rs 50,000 if a gift is given by someone other than your relative.
Gratuity Bonanza for Government Employees
When a government employee retires or passes away, their gratuity is fully tax-free. Employees in the private sector are also exempt from paying the 10 lakh gratuity that they receive upon retirement, termination, or disability. The Income Tax Act imposes additional restrictions on the tax deduction for gratuities.
Tax Exemption for Gallantry Awardees
Under the Income Tax Act, pensions received by winners of gallantry awards such as Mahavir Chakra, Param Vir Chakra, Vir Chakra, and other pensioners, as well as scholarships awarded by various institutions to students to complete their education, are exempt from tax. Payment is not necessary.
Section 10(15) Exemptions
Certain interest income is fully exempt from taxes under Section 10(15) of the Income Tax Act. In these, interest on gold deposit bonds, local government bonds, infrastructure bonds, and bank interest received under the Sukanya Samriddhi Yojana are all exempt from taxation.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER
