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 today let us tell you which income will not be taxed.
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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.
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