Income tax is levied on every income. It does not only include salary but apart from salary, it also includes many things like interest from savings, income from home, side business, capital gains etc. But let us tell you today on which income tax will not be levied.
Income tax: If you earn from many other ways apart from salary, then this news is of your use. This is because usually income tax is levied on every income. It does not only include salary but apart from salary, many things like interest coming from savings, income from home, side business, capital gains are also included in it. But there are some income sources on which not even a single rupee is taxed. Today we are going to tell you about 10 such income, where not even a rupee is taxed.
No tax is levied on these incomes
Earnings from EPF
The amount deposited by you in the PF account is exempted from income tax under Section 80C of the Income Tax Act. Tax exemption is also available on the amount deposited by the employer in your EPF account. The condition in this is that this amount should not be more than 12% of your basic salary. If the amount is more than this, then you will have to pay income tax on the remaining amount.
Return of up to one lakh rupees from shares or equity mutual funds
If you have invested in shares or equity mutual funds, then the return of up to one lakh rupees on selling them after one year is tax free. This return is calculated under LTCG. In last year’s budget, LTCG tax has been imposed on returns of more than one lakh rupees from investment in shares or equity mutual funds.
Gifts received at wedding
If you get a gift from friends or relatives on the occasion of marriage, then you do not have to pay tax on it. The condition here is that you should have received the gift around the time of your marriage. If your marriage is on 16th March and the gift is given after six months, then you will not get income tax exemption on it. Also, the value of the gift should not exceed Rs 50,000.
Interest on savings account
If you get interest up to Rs 10,000 in a year from your bank savings account, then you get income tax exemption on it under section 80TTA of the Income Tax Act. If the interest on the savings account is more than Rs 10,000 annually, then you will have to pay income tax on the additional amount.
Profit received from a partnership firm
If you are a partner in a firm, then the amount you receive as Share of Profit is exempt from income tax liability. In fact, your partnership firm already pays tax on it. Income tax exemption is only on the profit of the firm, not on the salary you receive.
Life insurance claim or amount received on maturity
If you have bought a life insurance policy, then the amount you receive at the time of claiming it or on its maturity is completely free from Income Tax. The condition here is that the annual premium of your life insurance policy should not exceed 10% of its sum assured. If the premium in the life insurance policy is more than this, then you will have to pay income tax on the additional amount. If you have taken a life insurance policy for a disabled or seriously ill person in your family, then the premium amount can be up to 15% of the sum assured.
Amount received in VRS
Many people take voluntary retirement (VRS) from their job. If you have also taken VRS, then the amount of up to Rs 5 lakh received by you is free from Income Tax. This facility is only for employees working in government or PSU (public sector companies), not for working people in the private sector.
Property received through inheritance or will
If you have also inherited property, jewellery or cash from your parents, then you do not have to pay Income Tax on it. If someone had made a will in your name and you have received property or cash from it, then also you do not have to pay Income Tax on it. You will have to pay tax on future income or interest income from such property as per your Tax Slab.
Agricultural Income
If you have agricultural land and you are earning from farming or related activities, then you do not have to pay any kind of Income Tax on that income. Agricultural income also includes the produce from it, the amount received as rent, etc. If you do farming by building an agricultural farm, then the income from it is also exempt from Income Tax.
On providing food in business
If you are a businessman, then you have to meet many types of people during your business. This includes customers, vendors and other employees. The cost of providing food and drink to them is also included in the process of business. You should keep the bill of such expenses and present it as a business expense. If you follow this process, then you can save Income Tax on this amount.
