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.
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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