If you earn money in other ways besides salary, then this news is useful for you. This is because generally income tax is levied on every income. This not only includes salary, but apart from salary, it also includes many other things like interest from savings, income from home, side business, capital gains etc. But there are some income sources on which not even a single rupee is taxed. Today we are going to tell you about 10 such incomes, where not even a single rupee is taxed.

There is no tax on this income

Earning from EPF

Income tax exemption is available under Section 80C of the Income Tax Act on the amount deposited by you in the PF account. Tax exemption is also available on the amount deposited by the employer in your EPF account. The condition in this is that this amount should not be more than 12% of your basic salary. If the amount is more than this then you will have to pay income tax on the remaining amount.

Returns up to Rs 1 lakh from share or equity mutual funds

If you have invested in Shares or Equity Mutual Fund, then the return of up to Rs 1 lakh on selling them after one year is tax free. This return is calculated under LTCG. In last year’s budget, LTCG tax has been imposed on returns of more than Rs 1 lakh received from investment in shares or equity mutual funds.

Wedding gifts

If a gift is received from friends or relatives at a wedding, then there is no need to pay tax on it. The condition in this is that you should have received the gift around your wedding. If your wedding is on March 16 and the gift is given after six months, then there will be no income tax exemption on it. Along with this, the value of the gift should not exceed Rs 50,000.

interest on savings account

If you get interest of up to Rs 10,000 in a year from your bank’s savings account, then you get exemption from income tax on it under 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.

Profit received from partnership firm

If you are a partner in a firm, then the amount you receive as Share of Profit is free from income tax liability. In fact, your partnership firm already pays tax on it. Income tax exemption is only on the profits of the firm, not on the salary you receive.

Amount received on life insurance claim or maturity

If you have purchased a life insurance policy, then the amount received by you at the time of claiming it or on its maturity is completely free from Income Tax. The condition in this is that the annual premium of your life insurance policy should not exceed 10% of its sum assured.

If the premium in a life insurance policy is more than this, you will have to pay income tax on the additional amount. If you have taken a life insurance policy for someone in your family who is disabled or suffering from a serious illness, then the premium amount can be up to 15% of the sum assured.

Amount received in VRS

Many people take voluntary retirement (VRS) from job. If you have also taken VRS, then the amount received up to Rs 5 lakh is free from Income Tax. This facility is only for employees working in government or PSU (public sector companies), not for people working in the private sector.

inherited property

If you have also inherited property, jewelery or cash from your parents, then you do not have to pay income tax on it. Even if someone had made a will in your name and you have received property or cash from him, you do not have to pay income tax on it. You will have to pay tax on future income or interest income from such property as per your tax slab.

Agricultural income

If you have agricultural land and you are earning from farming or related activities, then you do not have to pay any income tax on that income. Agricultural income also includes its produce, amount received as rent etc. If you do farming by building an agricultural farm, then the income from it is also free from Income Tax.

On feeding and feeding in business

If you are a businessman then you have to meet many types of people during your business. This includes customers, vendors and other employees. The cost of feeding them is also included in the process of business. You should keep a bill for such expenses and present them as business expenses. If you adopt this process then you can save income tax on this amount.

The post Tax Free Income! 10 types of income on which there is no tax, important things to know before filing return first appeared on Rightsofemployees.com.

Think of it as if I have inherited property, I will not pay any tax on it. I will have to inform the Income Tax Department about that asset, but I will not pay any tax on it. If I sell my inherited property, then I will have to pay tax on that property.

Who is included in the inherited property?

There is also a confusion regarding inherited property as to which property is ultimately called inherited property. Inherited property includes land or property that we inherit from our father, grandfather or great-grandfather. If we get any property from our mother’s family i.e. maternal grandfather, maternal uncle or other relatives, then it is not called inherited property. We are required to report such assets under the Income Tax Act, 1961 .

Who will pay tax on inherited property?

We have to pay tax on the sale of inherited property. It is the responsibility of the owner of the property to pay the tax levied on the property. By the way, any inherited property is considered as a gift and is tax free. But if this asset is sold then it is taxed. This tax comes under the category of capital gains. You also have to classify the capital gain as long-term or short-term. It depends on how long you have held any asset.

Suppose you own an ancestral property for two years, after that you sell it. When you sell the asset, whatever revenue comes to you i.e. the sale amount is considered as long-term capital gain.

Income tax act on inherited property

The Income Tax Act also has certain rules regarding inherited property. As per the Income Tax Act, if a property was inherited before April 1, 1981, then the owner of the property has an option to convert the fair market value of the property. And if the property is inherited after April 1, 2001, then the cost of acquisition is considered to be Rs 50,000.

In case of property inherited after April 1, 1981, you will not be able to set off the amount paid by the owners for tax purposes. Also, in many cases, you become entitled to the benefit of indexation from the year you receive the inherited property.

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