An individual with an annual income above Rs 2.50 lakh is required to file an income tax return but below mentioned incomes are exempted from it.
Wedding Gift: Regardless of the value of a wedding gift, the newly-wed couple is exempt from taxes on gifts received from immediate relatives, like their parents, siblings, or siblings’ spouses. It could be cash, stocks, jewelry, automobiles, electronics, artifacts, etc.
Partnership profit share: The profit share in a partnership firm is exempt from any kind of tax since the partner firm has already paid income tax. However, remuneration paid to the partner and interest on capital received by the partner is taxable.
Educational scholarship: Scholarships given for the purpose of meeting education costs in India or abroad are exempt from income tax under Section 10(16) of the Income Tax Act 1961. The scholarship income, however, should have been used only to cover education expenses.
Ancestral property: The beneficiary does not have to pay income tax on inherited ancestral property, such as residential or commercial property, jewelry, cash, and bank balances.
Gratuity: One’s gratuity income up to ₹20 lakh is also exempted from income tax.
Agricultural Income: In India, agricultural income is exempt from taxation and not included in the total income. Agri-income refers to sources of income that include agricultural land, buildings found on or attached to agricultural land, and commercial produce harvested from horticultural land.
