Do you know these incomes are fully exempt from Income tax

Updated: as per amended finance act 2020

[Section 10 of the Income Tax Act allows the computation of specific incomes as tax-free. Here we have listed tax-free income mainly under Section 10(6) and other import incomes which are tax-free under section 10 such as 10(1), 10(2), 10 (2A),10(4),10(4B), 10(10D,10(10BC),and10(15).]

There are certain types of income for which your income tax liability is nil. Any income earned which is not subject to income tax is called exempt income. The following are fully exempt income under Section 10(6) of the Income Tax Act, 1961.

1. A widow or other legal heirs of an employee who dies while still in active service who receives a lump-sum payment made gratuitously or by way of compensation or otherwise [IT Circular No. 573, dated 21-08-1990]
2. An individual or legal heirs of an employee of Central or State Government, Local Authority or Public Sector who receives Ex-gratia payment consequent upon injury to the person or death of a family member while on duty [IT Circular No. 776, dated 08-06-1999]    
3. Salary received from United Nation Organization [Circular No. 293, dated 10-02-1981]   
4. Salary received by foreign national as an official of an embassy, high commission, legation, consulate, or trade representation of a foreign state is fully exempt from tax under section 10(6)(ii), provided the corresponding official in that foreign country enjoys a similar exemption
5. Remuneration received by a non-resident foreign citizen as an employee of a foreign enterprise for services rendered in India, is fully exempt from tax   under section10(6)(vi), provided;
6. Foreign enterprise is not engaged in any trade or business in India
7. His stay in India does not exceed in aggregate a period of 90 days in such previous year
8. Such remuneration is not liable to deduct from the income of employer chargeable under Income Tax Act 1961
9. Salary received by a non-resident foreign national for services rendered in connection with his employment on a foreign ship if his total stay in India does not exceed 90 days in the previous year is fully exempt under section 10(6)(viii).
10. Salary and allowances received by a teacher /professor from SAARC member state (Subject to certain conditions)

Following are some of the other types of income for which your income tax liability is zero.

Section 10(1)-Agricultural Income

Section 10(2)-Amount received out of income of family estate by a member of Hindu Undivided Family(HUF)

Section 10 (2A)- Share of profit received by a partner from the firm. This exemption is limited only to share of profit and does not apply to interest on capital and remuneration received by the partner from the firm/LLP.

Section 10(4)-Certain interest to non-residents

Section 10(4B)-Interest on notified savings certificates received by Indian citizen/NRI/PIO

10(10D)-Life insurance benefit including bonus     

10(10BC)-Government compensation for damage due to disaster      

10(15)-Earnings of tax-free securities 

Source: Income tax department

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INCOME TAX SLABS FOR FY 2024-25: TAX DEDUCTIONS AND REBATES EXPLAINED	KNOW TDS ON CASH DEPOSIT WITHDRAWALS AND OTHER CASH TRANSACTIONS	INCOME TAX DEPARTMENT HAS NOW ROLLED OUT NEW FUNCTIONALITY IN AIS
INCOME TAX DEDUCTION AND REBATE AVAILABLE ON HOUSING LOAN	CALCULATION OF INCOME TAX BENEFIT AVAILABLE ON HOUSE RENT ALLOWANCE	DO YOU KNOW THESE INCOMES ARE FULLY EXEMPT FROM INCOME TAX

[Nearly, 104 amendments are made either by amending/omitting existing sections or by insertion of new sections. In this article, the amendments, which are most relevant to salaried persons, are covered below.]

1	List of employee benefits not included under the head of Salaries for the tax treatment
2	How to calculate tax relief on salary arrears under Section 89(1)?
3	The tax calculation for Concessional or interest-free loans are given by an employer
4	Calculation of Income Tax benefit available on House Rent Allowance
5	Calculation of tax components on the perquisite value of rent-free unfurnished/furnished accommodation/hotel charge
6	Perquisite value of motor car expenses paid/reimbursed by the employer
7	Income Tax treatment in case of provided with medical benefit
8	What is the tax exemption limit for Transport allowance, Conveyance allowance, and Relocation Allowance?
9	Income Tax Benefit on LTA/LTC under section 10(5)
10	Tax benefit for working in a hilly area, tribal area, border area, and disturbed areas
11	Tax benefits for working in a hilly area, tribal area, border area, and disturbed areas
12	Tax benefits on retirement, VRS, and retrenchment of salaried persons
13	What is capital gain and how capital gain tax has arrived?
14	Tax deduction benefits on the standard deduction, entertainment allowance, and employment/professional tax from salary
15	The taxable value of perquisite in respect of “sweat equity shares” or ESOP
16	What are the tax benefits under NPS?
17	Do you know these incomes are fully exempt from Income tax?
18	What happens to your tax liability when you opt for a new tax regime?
19	Do you know the incomes that are exempted from income tax even in the new tax regime?
20	Do you know these incomes are fully exempt from Income tax

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