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List of All Incomes Exempted from Income Tax, List of Exempted Incomes 2017. Find Full List of All Incomes who Completely Exempt From Income Tax. Hi Friends After Providing Latest Income Tax Slab Rates for A.Y 2017-18, Today we Provide Complete List of all incomes Exempt From Income Tax. Like Agriculture Income Completely Exempt under Sec 10(1) Etc. This list is Very useful for all professional like Chartered accountants, Company Secretaries, Cost Management Accountants, and also Useful for CA, CS, CMA Students. Now you can scroll down below and Find “List of All Incomes Exempted from Income Tax “
List of All Incomes Exempted from Income Tax
All receipts, which give rise to income, are taxable under the income-tax Act unless it is specifically provided that it does not form part of total income. Such incomes which don not form part of total income may also be called incomes exempt from tax. As per section 10 to 13A, certain incomes are either totally exempt from tax or exempt up to a certain amount. Therefore, these incomes, to the extent these are exempt, are not included in the total income of an assessee for computation of his total income.
Sections Particulars 10(1) Agricultural Income 10(2) Sum received by a member from HUF 10(2A) Share of profit if a partner from a firm 10(4) Interest in Non-resident (External) Account 10(5) Leave travel concession or assistance received by an individual from his employer subject to certain conditions being satisfied. 10(6) Remuneration to certain persons who are not citizens of IndiaIn case of an individual who is not a citizen of India, the following income shall be exempt:i. Remuneration received by diplomatsii. Remuneration received by a foreign national as employee of a foreign enterprise.iii. Non-resident employed on a foreign shipiv. Remuneration of employee of foreign Government during his training in India 10(7) Allowances or perquisites outside India to an Indian citizen who is a Government employee posted outside India 10(10) Death-cum-retirement gratuity received by an employee subject to certain limits specified 10(10A) Payment in commutation of pension received by the employees subject to certain limits specified 10(10AA) Leave encashment subject to certain limits specified 10(10B) Compensation on retrenchment subject to maximum of ` 5,00,000 10(10BB) Payments under Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 10(10BC) Compensation received or receivable on account of any disaster 10(10C) Amount received on voluntary retirement subject to maximum of ` 5,00,000 10(10CC) Tax on non-monetary requisites paid by employer 10(10D) Amount received under a Life Insurance PolicyAny sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, is wholly exempt from tax. However, the following sum received are not changed under this section:1. Any sum received from a policy under section 80DD(3) or section 80DDA(3); or2. Any sum received under a Keyman Insurance Policy; or3. Premium payable for any previous year exceeded 10% of sum assured. 10(11) Provident Fund 10(12) Payments from Recognized Provident Fund 10(13) Any payment from an approved Superannuation FundAny payment from an approved superannuation fund shall be exempt provided it is made:i. On death of a beneficiary;ii. To any employee in lieu of or in communication of an annuity on his retirementiii. By way of refund of contribution to on the death of a beneficiaryiv. By way of refund of contribution to an employee on his leaving the service in connection with which the funds is established otherwise than by retirement at or after a specified age or on his becoming incapacitated to such retirement 10(13A) House Rent Allowance subject to certain limits specified 10(14) Notified Special Allowance subject to certain limits specified 10(15) Interest, premium or bonus on specified investmentsAny income by way of interest, premium on redemption or other payment on such securities, bonds, annuity certificates, savings certificates, other certificates issued by the Central Government and deposits as the Central Government may, by notify cation in the Official Gazette, specify in his behalf, subject to such conditions and limits as may be specified in the said notification e.g. interest on Post Office Saving Bank account is exempt up to ` 3,500 in case of an individual account, and ` 7,000 In case of a joint account. 10(16) Scholarships granted to meet the cost of education 10(17) Daily and consultancy allowance, etc. received by MPs and MLAs 10(17A) Award or Reward given by the Government 10(18) Pension received by certain awardees/any member of their families 10(19) Family pension received by the family members of armed forces personnel killed in action 10(19A) Annual value of one palace of the ex-rulerThe ‘annual value’ in respect of any one palace which is in the occupation of an ex-ruler is exempt from tax. 10(20) Income of a local authorityThe following income of a local authority shall be exempt:i. Income which is chargeable under the head, ‘Income from house property’,ii. Income from ‘Capital gains’, oriii. Income from ‘Other sources’, oriv. Income from a trade or business carried on by it which accrues or arises from the supply of:a) Water or electricity within or outside its own jurisdictional area, or
b) Any other commodity or service within its own jurisdictional area.
10(21) Income of an approved scientific research association 10(22B) Income of specified news agency 10(23A) Income of professional association/institution 10(23BBH) Income of the Prasar Bharti (Broadcasting Corporation of India) 10(23C) Income of certain funds of national importanceAny income received by any person on behalf of the following is exempt from tax:i. The Prime Minister’s National Relief Fund; orii. The Prime Minister’s Fund (Promotion of Folk Art); oriii. The Prime Minister’s Aid to Students Fund; oriv. The National Foundation for Communal Harmony; orv. Any university or other educational institution existing solely by for educational purposes and not for purpose of profit; or
vi. Any hospital or other institution for the reception and treatment of persons (i) suffering from illness or (ii) mental defectiveness or (iii) during convalescence or (iv) requiring medical attention or rehabilitation, existing solely for philanthropic purpose and not for payment of profit. The exemption under clause (v) and (vi) shall be available only to following type of universities/ hospitals/institutions (hereinafter called institutions).
A. Institutions which are wholly or substantially financed by the Government, or
B. Institutions whose aggregate annual receipts do not exceed ` 1crore, or
C. Institutions, other than covered under (A) and (B) above, which may be approved by the prescribed authority i.e. Chief Commissioner or Director General of Income-tax
Where approval is granted it shall be a permanent approval unless it is cancelled or withdrawn.
vii. The provision also empowers the prescribed authority, on an application, to grant exemption from income tax by giving approval in respect of:
a. Any other fund or institution established for charitable purposes, having regard to its objects and importance throughout India or throughout any one or more States [Section 10(23C)(iv)]; and
b Any trust or institution, which is either or wholly for public religious purposes
or wholly for public religious and charitable purposes, and which is administered and supervised in a manner so as to ensure that its income
Properly applied for its purposes. [Section 10(23C)(v)]
10(23D) Income of notified mutual funds 10(24) Income on Trade Union 10(26) Income of a member of Scheduled Tribe residing in certain specified areas 10(26AAA) Income of a Sikkimese 10(32) Income of minor clubbed in the hands of a parent after maximum exemption of ` 1,500 10(34) Dividend to be exempt in the hands of the shareholders 10(35) Income from units to be exempt in the hands of the unit-holders 10(37) Capital gains on compensation received on compulsory acquisition of agricultural land situated within specified urban limits 10(38) Long term capital gain arising from sale of shares through recognized stock exchange and units sold through RSE or sold to mutual funds 10(39) Exemption of specified income from international sporting event held in IndiaAny specified income arising, from any international sporting event held in India, to the person or persons notified by the Central Government in the Official Gazette, shall be exempt if such international sportingevent –a) Is approved by the international body regulating the international sport relating to such event;b) Has participation by more than two countries;c) Is notified by the Central Government in the Official Gazette for the purpose of this clause. 10(43) Amount received by an individual as loan under the reverse mortgage 10(44) Income received by any person or on behalf of New Pension System Trust 10(45) Notified allowance or perquisite paid to Chairman/member or retired Chairman/member of U.P.S.C. 10(46) Specified income arising to a notified body/authority/board/trust commissionAny specified income arising to a body or authority or Board or Trust or Commission (by whatever namecalled) which –a) Has been established or constituted by or under a Central, State or Provisional Act, or constituted by the Central Government or a State Government, with the object of regulating or administering any activity for the benefit of the general public;b) Is not chargeable in any commercial activity; andc) Is notified by the Central Government in the Official Gazette for the purposes of this clause shall be exempt from income-tax. 10(47) Income of an infrastructure debt fund 10(48) Exemption in respect of income received by certain foreign companiesAny income of a foreign company received in India in Indian currency on account of sale of crude oil to any person in India shall be exempt subject to the following conditions being satisfied:i. The receipt of money is under an agreement or an arrangement which is either entered into by the Central Government or approved by it.ii. The foreign company, and the arrangement or agreement has been notified by the Central Government having regard to the national interest in this behalf.iii. The receipt of the money is the only activity carried out by the foreign company in India. 10(49 Exemption of income of National Financial Holdings Company [Section 10(49)] [w.e.f. A.Y. 2014-15] 10AA Special provisions in respect of newly established Units in Special Economic ZonesEligibility: It is allowed to all categories of assesses established in Special Economic ZoneConditions:1. It should not be farmed by the splitting up an reconstruction of a business already in existence2. It should not be formed by the transfer of machinery or plant, previously used for any purpose.Following are the exceptions to this conditions:a) Imported machinery never used in India will not be treated as second hand machinery
b) Machinery upto 20% of total value can be second hand
c) Audit report of CA compulsory
Period for which deduction is available1. First 5 consecutive years – 100% of profits2. Next 5 consecutive years – 50% of profits3. Next 5 consecutive years – not exceeding 50% of profits debited to profit and loss of a/c and creditedto Special Economic Zone Reinvested Reserve AccountComputation of deduction allowProfit of business * ET (Expert Turnover/It (Turnover) 11 Income from property held for charitable or religious purposesFor claiming exemption under section 11, the following conditions must be satisfied:a) Trust must have been created for any lawful purposeb) Such trust/institution must be for charitable or religious purposesc) The property from which income is derived should be held under trustd) The accounts of the trust/institution should be auditede) Trust must get itself registered with the Commissioner of Income-tax
f ) The charitable trust created on or after 1.4.1962 should satisfy the following further conditions:
i. It should not be created for the benefit of any particular community or caste;
ii. No part of the income of such charitable trust or institutions should enure directly or indirectly for the benefit of the settler or other specified persons; and
iii. The property should be held wholly for charitable purposes.
The following incomes of a religious or charitable trust or institution are not included in its total income, provided the above conditions are satisfied:
g) Income from property held under trust wholly for charitable or religious purposes
h) Income from property held under trust which is applied in part only for charitable or religious purposes
i) Income from property held under trust which is applied for charitable purposes outside India
j) Voluntary contribution forming part of corpus, corpus means income in the form of voluntary contribution with a specific directions
Exemption allowed to the extent of income applied for charitable purpose in India plus 15% of the income so accumulated. Assessee can accumulate more than 15% by fi ling form 10 and depositing the money in a mode given under section 11(5). Period of accumulated maximum 5 years Corpus donations are fully exempt
12 Income of trusts or institutions from voluntary contributions also exempt as given above 12A Registration of trust before the end of the previous year from which exemption is required is compulsory to claim exemption 12AA Procedure for registration, “Assessee to apply for registration in Form 10A” 13A Income of political parties. It should be a registered political partyIn this case the following incomes are exempt:i. Income under from house propertyii. Income from other sourcesiii. Income from capital gainsiv. Income from voluntary contribution provided the name and address of the donor who gives donation of ` 2,00,000 or more is given 13B Income of Electoral Trust exempt