Please let me know the difference between "Tax Exempt" and "Tax Free"? Do they mean the same thing?
Tax exempt and tax free
Shreya Aggarwal (Student) (125 Points)
11 October 2011
6 Replies
ANUP GUPTA
(KEEP SMILING fcaanupgupta@gmail.com)
(303 Points)
Replied 11 October 2011
Both r same thing
But tax exempt & deduction r diff. Thing.
Phalgun
(Audit Manager)
(327 Points)
Replied 12 October 2011
TAX Free income & TAX Exempt income look alike but with minute difference.
TAX Free means Zero tax .
Eg: Gift From relative, Dividend from domestic company
Whereas Tax Exempt may be totally exempt or Partially exempt
Eg : Lottery income tax free upto Rs.10000.
Sandeep Kumar
(learner)
(81 Points)
Replied 12 October 2011
Tax free means that you will never be taxed on those incomes. tax exempt means that tax is applicable on those incomes but an exemption have been given to those incomes.
Rakesh
(Executive- Commercial & CMA final student)
(179 Points)
Replied 12 October 2011
Tax free means there is no tax on such income/manufacture/sales..However tax exemption means tax is applicable first on such income/manufacture/sales & later on they are exempted from tax..eg..income from agriculture..
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