ITR Return: Under the old tax regime, individuals below the age of 60 years had to pay tax with taxable income above Rs 2.5 lakh. For senior citizens (60 to 80 years), the tax-free income limit has been capped at Rs 3 lakh, and for super senior citizens (above 80 years), it is Rs 5 lakh in a financial year.
10 Incomes Exempt from Income Tax for ITR Return: What You Need to Know Before Filing
ITR Return: This year the last date for filing income tax return is 31st July. If you are also preparing to file your return then it is important for you to know which income is taxed and which is not. By knowing this, you will not only be able to file your return correctly but will also save tax. Today we are telling you about those 10 incomes on which you do not have to pay income tax. Let us know about them.
Agricultural Income: Income from agriculture in India is completely exempt from income tax. This exemption is not only on sale of crops but also includes rent received from agricultural land or buildings and profit from buying or selling agricultural land.
Interest income from NRE accounts: NRE accounts offer benefits such as tax-free interest on NRE deposits. NRIs can also transfer funds to their native place through NRE accounts.
Gratuity: In the private sector, employees receiving gratuity amount up to Rs 20 lakh on retirement are not required to pay income tax.
Capital gains: Some capital gains are also tax-free. Individuals receiving compensation in lieu of urban agricultural land do not have to pay income tax.
Profits from Partnership Firm: Under the Income Tax Act, income of a partnership firm is taxed at the entity level. Partners working for the firm do not pay income tax as they get a share of the profit after paying taxes.
Scholarships: Students receiving scholarships from government and private institutions for studies are exempted from income tax.
Provident Funds: Provident funds, mandatory savings schemes for companies registered under the Companies Act, 1956 in India, grow with age and become tax-free upon your retirement from the job. The Employees Provident Fund offers tax-free returns, provided the employee has actively contributed for more than 5 years, even if they have changed employers during this period.
Tax-free pensions: Pensions from certain organisations, such as the UNO, are exempt from tax. Family pensions received by dependents of employees are also tax-free.
Voluntary retirement: Amount received on voluntary retirement before retirement is exempt from tax up to Rs 5 lakh. Gifts received from relatives or on the occasion of marriage are also exempt from tax.
Allowances or any compensation: Certain allowances are exempt from tax for any individual in India. For example, the foreign allowance provided by the Indian government to its employees working abroad is tax-free. Additionally, compensation received from Public Sector Undertaking (PSU) companies on voluntary or retirement is also exempt from tax.
