Income Tax News: Every taxpayer searches for methods to reduce their income tax liability. He takes further steps to address this, such as investing in different schemes. However, did you know that there are six categories of income for which there is no tax liability? It is crucial that you are aware of this as the deadline for filing your income tax return is drawing near.
Tax Slab and Income Tax Return (ITR) Filing
According to the tax slab on their yearly income from a job or business, taxpayers must file an ITR. However, income tax also has provisions for non-taxable income. Income that is not liable to income tax is referred to as non-taxable income.
Exemption for Agriculture-Related Income
Agriculture-related income is exempt from income tax under the Income Tax Act of 1961. Income from immovable property, income from ancestral property, and income from Hindu undivided families are all exempt from taxes. Under the Income Tax Act’s section 56(ii), presents from relatives are tax-free and can include cash, gold, cars, and other items. It will only be excluded up to Rs 50,000 if a present is given by someone other than your related.
Tax-Free Gratuity for Government Employees
When a government employee retires or passes away, their gratuity is fully tax-free. Employees in the private sector are also excused from paying the 10 lakh gratuity that they earn upon retirement, termination, or incapacity. The Income Tax Act imposes additional restrictions on the tax deduction for gratuities.
Exemption for Bravery Award Winners
Under the Income Tax Act, pensions received by winners of bravery awards such as Mahavir Chakra, Param Vir Chakra, Vir Chakra, and other pensioners, as well as scholarships awarded by various institutions to students to continue their study, are exempt from tax. Payment is not necessary. Certain interest income is fully exempt from taxes under Section 10(15) of the Income Tax Act. In these, interest on gold deposit bonds, local government bonds, infrastructure bonds, and bank interest received under the Sukanya Samriddhi Yojana are all exempt from taxation.