Quick Answer: What Are The Exempted Incomes Under Income Tax Act?

What is section 11 of Income Tax Act?

Section 11 – Income from Property Held for Charitable or Religious Purposes.

Any income derived from property held partially under trust (incorporated before commencement of Income-tax Act) provided such income is utilised for charitable or religious purposes in India..

Which company is exempted from income tax?

Retirement Compensation from a Public Sector Company or any other Company [Section 10(10C)] Tax on Non-monetary Perquisites paid by Employer [Section 10(10CC)] Amount received under a Life Insurance Policy [Section 10(10D)] Statutory Provident Fund [Section 10(11)]

What is section 10 exemption in income tax?

The exemption under section 10 covers Leave travel allowance (LTA) Agriculture Income, Life Insurance, Gratuity, leave encashment, Transport allowance etc.

What is section 17 of Income Tax Act?

Section 17(1) of the Income tax Act gives an inclusive and not exhaustive definition of “Salaries” including therein (i) Wages (ii) Annuity or pension (iii) Gratuity (iv) Fees, Commission, perquisites or profits in lieu of salary (v) Advance of Salary (vi) Amount transferred from unrecognized provident fund to …

What is Section 11 and 12 of Income Tax Act?

Section 2(15) defines Charitable Purpose and sections 11, 12, 12A, 12AA and 13 of the Income –tax Act, are the main sections that deal with scheme of taxation exemption in respect of income of charitable or religious trusts/institution. Section 11 and 12 of the income tax act provides exemptions to NGO’s.

Is exemption same as allowance?

You’re confusing two separate concepts: exemptions and allowances. Exemptions are claimed on your Form 1040. … Each allowance you claim reduces the amount of your income that is withheld for taxes.

What is an example of tax exempt income?

Examples. Common types of tax exempt income include most gifts and bequests, workers’ compensation, veteran’s benefits, Supplemental Security Income, child support, and public benefits, such as welfare payments. Spousal support is taxable in the year it is received.

What are the exemptions under section 10?

Following are the tax exemptions provided under Section 10:Leave travel allowance (LTA) LTA is exempt to a certain extent for domestic travel under section 10(5) of income tax. … Agricultural income. … Life insurance. … Gratuity. … Leave encashment. … Commuted pension. … Compensation under VRS. … Provident fund.More items…•

What is total amount of any other exemption under section 10?

Other allowances under sub-section (14)(ii) of Section 10 of the Income Tax Act include: ₹800/month for underground mine workers. ₹4,200/month for employees in highly active areas. ₹1,000/month for workers in specified modified field areas.

What is 10/10 D in income tax?

Section 10(10)D of the Income Tax Act, 1961 As per Section 10(10D) of the Income Tax Act, 1961 the amount of sum assured plus any bonus (i.e. the policy proceeds) paid on maturity or surrender of policy or on death of the insured are completely tax free for the receiver subject to certain conditions.

What jobs are exempt from tax?

Payroll tax exemptionsMaternity, paternity or adoption leave. If you pay wages to an employee on maternity, paternity or adoption leave, the wages are exempt for 14 weeks full-time. … Commonwealth Government paid parental leave. … Emergency service volunteers. … Defence personnel. … Indigenous person under a Community Development Employment Project.

What is Section 10 13a in income tax?

House rent allowance (HRA) is received by the salaried class. A deduction is permissible under Section 10(13A) of the Income Tax Act, in accordance with Rule 2A of the Income Tax Rules. … The HRA deduction is based on salary, HRA received, the actual rent paid and place of residence. The place of residence is important.

What is the maximum exemption under section 10?

An allowance of up to INR 100 per month, per child, is tax-free under Section 10. Also, there is a hostel allowance for expenses that are made towards a child’s hostel fee, up to INR 300 per month per child. This exemption can be availed for two children only.

Which of the following income is not exempt under section 10?

Tax paid by Indian company will be exempt and so it will not be grossed up with the income of the foreign company and such foreign company’s income will be only Rs. 1,00,000….Public Provident FundEmployer’s ContributionEmployers do not contribute to such fundInterestInterest credited to such fund is exempt.1 more row

What is the exempted income?

Exempt income is any income that isn’t subject to federal tax. … Income from some types of investments, like muni bonds, qualify as exempt income. There are other types of income that are exempt from state level taxes. Some income may be exempt at the state level but still taxed at a federal level.

What is Section 10 15 of Income Tax Act?

Interest Income exempted under section 10(15) of Income Tax Act, 1961. Interest income or premium on redemption or other payments on notified securities; bonds; annuity certificates; savings and other certificates. … Interest income on notified Relief Bonds. The exemption is available only to Individual and HUF.

What are the 5 types of income?

The 5 Types Of Income The IRS Wants You To Know. Gross income is all the income a person receives across all sources before any deductions. Your gross income includes all wages, dividends, interests, business income, rental income, alimony and that money your uncle gave you at Christmas.