what income is tax free: ITR filing season is on, in such a situation, we have brought a very important information related to income tax for you people. We have to pay tax on different types of income, but do you know that there are some incomes which are not taxed. If not, then this article is for you only. Here we will tell you in detail about those incomes.

Income Tax is levied on your entire income. This does not include only salary. Apart from salary, many things like interest from savings, income from home, side business, capital gains etc. are included. But there are some sources from where the income does not come under the purview of tax. Apart from income from farming, there are many other incomes which have been kept out of the tax net. According to tax experts, there is mention of such tax exempt income in Section 10 of the Income Tax Act.

Let us tell you that under the new tax regime in Budget 2023, changes have been made in the tax slabs. Now those earning up to Rs 7 lakh will not have to pay tax. Earlier, rebate was available up to Rs 5 lakh. Now it has been increased to Rs 7 lakh. Salaried people will benefit from this. Apart from this, there are some incomes on which you do not have to pay any tax. Let us tell you about such income on which tax can be saved…

1. Income from agriculture: India is an agricultural country. In order to promote the agricultural sector in the country, the Income Tax Act 1961 has kept the income from agriculture out of the scope of income tax. If you have agricultural land and are earning from farming or related activities, then you do not have to pay any tax on that income.

2. Money received from Hindu Undivided Family (HUF): Money received from Hindu Undivided Family (HUF) or income in the form of inheritance is kept out of the purview of income tax. Under Section 10(2) of the Income Tax Act, this type of income is out of the scope of tax. This section states that a Hindu Undivided Family will not have to pay income tax on family income, income from immovable property or ancestral property.

3. Interest from savings account: You get interest every quarter on the amount in your savings account. This is your income according to income tax law. On this you can get income tax exemption according to section 80TTA of the Income Tax Act. If the interest on savings account is more than Rs 10,000 annually, then you will have to pay income tax on the additional amount.

4. Tax exemption on gratuity: If an employee works for the Central or State Government, then the gratuity received by him is completely tax free. However, when an employee working in the private sector receives a token of appreciation, the tax rules for it are different.

5. Amount received on VRS: Under Rule 2BA of the Income Tax Act, the amount received as VRS up to Rs 5 lakh is tax free.

6. Scholarships, Awards: If a student receives any scholarship or award to meet the expenses of his studies, then it is exempted from income tax under Section 10 (16) of the Income Tax Act. There is no limit of amount in this.

The post Income Tax Free Income : You will not have to pay even a single rupee tax on these 6 earnings, file returns only after seeing the list. first appeared on Rightsofemployees.com.

In fact, IANS has quoted sources as saying that the government may increase the income tax exemption limit from the existing Rs 2.5 lakh to Rs 5 lakh in the upcoming budget of 2023-24.

What is the present slab?

Explain that if this decision is taken then taxpayers can have more disposable income. Sources said that this will also boost consumption, which can also lead to economic recovery. Sources further said that the move would also encourage investment. Explain that at present, the maximum amount of income on which no tax is levied is Rs 2.5 lakh. In case of individuals in the age group of 60-80 years, it is Rs.3 lakh and for senior citizens above 80 years of age, it is Rs.5 lakh. Let us tell you that senior citizens and super senior citizens get more relief on annual income.

Annual income up to 2.5 lakhs: Zero tax slab
Annual income up to 2.5-5 lakhs: 5% tax slab
Annual income up to 5-10 lakhs: 20% tax slab
Annual income above 10 lakhs: 30% tax slab

Preparation for change after 9 years

Tell that the government last changed the income tax limit in the year 2014.At that time the limit of 2 lakhs was increased to 2.5 lakhs. This was the first general budget of the first term of the Modi government. Now in the year 2023, the Modi government is going to present the last full budget of its second term. Let us tell you that Finance Minister Nirmala Sitharaman is expected to present the Union Budget for 2023-24 on February 1, 2023.

The post Big news for taxpayers: Income tax free up to ₹ 5 lakh, preparing for change after 9 years! first appeared on Rightsofemployees.com.