financial services · Taxation

Some Lesser-known Incomes That Have No Income Tax Liability

The current financial year is about to end in a few months and people will be start filing online it return to keep their financial status secure. So before you start with your tax filing, you might like to know about some type of incomes that are exempted from all tax liability. These incomes are non-taxable and do not require to be filed through online it return.

• Income generated from agricultural lands are exempted from all tax liabilities unless you have income from other sources that exceeds the minimum Income tax limitations. In that case, agricultural income exceeding INR 10,000 is liable to get taxed. However, if agriculture is your sole income and either you do firm yourself or rent agricultural land, the income will be totally tax-free.

• If you are an aspiring or continuing student and have received any scholarship or grant then that amount is not liable to get taxed. You can declare it during online it returns filing, but don’t need to pay any tax for them. This exempt include tuition fees and all expenses required to acquire the qualification. All types of scholarships such as Government offered or university offered or any trust offered falls under this exemption umbrella.

• If you are working in abroad for the Government of India and receive any allowance or remuneration then that amount is exempted from tax liabilities.

• If you a central/state government employee and receives a gratuity for your service, then you will not need to pay online it return for that amount. However, if the amount exceeds the limit of INR 10lakhs, then you will have to pay taxes for that. The same policy also goes for the private employees if they receive any gratuity from their employer.

Other than these incomes, all other investments specified in Section 80 is exempted from income tax liability. Though these incomes are exempted from tax liability but they need to be declared during filing online it returns.

Source : http://allindiaitr.blogspot.in/2017/01/some-lesser-known-incomes-that-have-no.html

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