Tax On Income: If you pay tax, then it is important for you to know which income is taxed and which is not. By knowing this, you will not only be able to fill your return correctly but will also save tax. Today we are telling you those incomes on which you do not have to pay income tax. Let’s know about them.
Tax On Income: If you earn in 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 included in it. But there are also some such income sources on which not even a single rupee is taxed. Today we are going to tell you about 10 such incomes, where even a rupee is not taxed.
There is no tax on the income earned in this way
1) Earning from EPF
The amount deposited by you in the PF account is exempted from income tax under Section 80C of the Income Tax Act. The amount deposited by the employer in your EPF account is also exempted from tax. The condition here 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.
2) Return of up to Rs 1 lakh from shares or equity mutual funds
If you have invested in shares or equity mutual funds, then the return of up to Rs 1 lakh received 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 Rs 1 lakh received from investment in shares or equity mutual funds.
3) Gift received at marriage
If you receive a gift from friends or relatives at a wedding, 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 wedding. If your wedding is on March 16 and the gift is given six months later, you will not get income tax exemption on it. Also, the value of the gift should not exceed Rs 50,000.
3) 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.
4) Profit received from a partnership firm
If you are a partner in a firm, then the amount you receive as Share of Profit is free 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 get.
5) Life insurance claim or amount received on maturity
If you have bought a life insurance policy, then the amount you get 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.
6) 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.
7) Property received through inheritance or will
If you have inherited property, jewellery or cash from your parents, then you do not have to pay income tax on it. If someone has 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.
8) 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 making an agricultural farm, then the income from it is also exempt from income tax.
9) On providing food and drinks in business
If you are a businessman, then you have to meet many types of people during business. This includes customers, vendors and other employees. The cost of feeding them is also included in the business process. You should keep the bill for such expenses and present it as a business expense. If you follow this process, you can save Income Tax on this amount.
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