Tax Free Income In India

CA Manish K Dhoot (CA, B. Com, NCFM, CPCM) (5015 Points)

10 August 2010  

 

Tax Free Income In India

Section Eligible Assessees Type of income exempt
10(1) All assessees Agricultural income
10(2) A member of HUF being individual Amount received out of family income, or in case of impartible estate, amount received out of income of family estate
10(2A) Partner of a firm Share of profit in total income of the firm
10(4)
  1. Non-resident
  2. Person resident outside India (as defined in FEMA) and person who has been permitted to maintain said account by RBI
  1. Interest on securities or bonds notified by the Central Government including premium on redemption of such bonds
  2. Interest received on Non-resident (External) Account
(C.G. will not specify any bonds after 1-6-2002)
10(5) Salaried employee (See Salary) Leave travel concession or assistance
10(7) Citizens of India Foreign allowances or perquisites paid or allowed by Government to its employees posted abroad
10(8) Individual Foreign income and remuneration received from foreign Government for services rendered in connection with any co-operative technical assistance programmes and projects in accordance with agreement entered into by Central Government and foreign Government
10(10) Salaried employee (See Salary) Death-cum-retirement gratuity received by employees
10(10A) Salaried employee (See Salary) Payment in commutation of pension received from Government/Private employer/ LIC Fund u/s 10(23AAB)
10(10AA) Salaried employee (See Salary) Amounts by way of encashment of unutilised earned leave on retirement.
10(10B) Workman (See Salary) Retrenchment compensation upto maximum of Rs. 5,00,000
10(10BB) Any Assessee Payments made under Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985
10(10C) Salaried Employee (See Salary) Payment received on voluntary retirement in accordance with approved.
10(10CC) Salaried employee In case of perquisite not provided for by way of monetary payment, tax on such income actually paid by the employer.
10(10D) All assessee Any sum received under a life insurance policy other than amounts received under a Keyman insurance policy
10(11) Individual/ Hindu undivided family Payment from public provident fund/statutory provident fund
10(12) Salaried employee Accumulated balance payable to employee participating in recognised provident fund (subject to certain conditions)
10(13) Salaried employee Payment from approved superannuation fund in specified circumstances and subject to certain limits
10(13A) Salaried employee (See Salary) House rent allowance (subject to certain limits)
10(14) Salaried employee (See Salary) Prescribed allowances or benefits
10(15) Individual/HUF Income from notified securities
(C.G. will not specify any bonds after 1-6-2002)
10(16) Individual Scholarship granted to meet cost of education
10(17A) Any assessee Amount received in cash or in kind as award instituted by Central/ State Government or reward instituted by C.G. approved body
10(18) Individual - Central/ State Government employee or his family member Pension received by individuals as stated above.
10(20) Local authority Specified incomes of a local authority
10(21) Scientific Research Association Income of approved scientific research associations approved u/s. 35
10(22B) News agencies Income of notified news agency set up in India.
10(23) Sports and games associations and institutions
(upto A.Y. 2002-03)		 Income of notified sports or games associations or institutions.
10(23A) Professional associations Income of approved professional bodies other than income from house property, income received for rendering specific services and income by way of interest or dividends.
10(23AAA) Any person on behalf of employees welfare fund Any Income
10(23AAB) Fund set up by LIC Income of fund set up by LIC under an approved pension Scheme
10(23B) Public charitable trust/registered society Income of institution existing solely for development of khadi or village industries
10(23BB) Khadi and Village Industries Board Any Income
10(23BBA) Body/Authority established, constituted or appointed under Central, State or Provincial Act Income of a body or authority established for administration of public religious or charitable trusts or endowments.
10(23C)
  1. University/ other educational institution Hospitals/nursing home
  2. Charitable/Religious trusts and institutions
 Certain Incomes of the said institutions subject to certain conditions.
10(23D) Mutual Fund registered under SEBI Act, 1992, and Notified Mutual Fund set up by public sector bank or financial institution or authorised by RBI Income of Mutual Fund subject to notified conditions
10(23F) Approved venture capital fund/ venture capital company Dividends or long-term capital gains of approved venture capital fund/venture capital company from investments made before 1-4-1999
10(23FA) Approved venture capital funds/ venture capital companies Any income by way of dividends
(Other than referred to in s. 115-O), or long-term capital gains of approved venture capital funds and venture capital companies from investments made before 31.3.2000 by way of equity shares in a venture capital undertaking
10(23FB) Venture capital company/fund Income of a venture capital company or venture capital fund set up to raise funds for investment in a venture capital undertaking
10(23G) Infrastructure capital fund or infrastructure capital company Dividends
(Other than referred to in s. 115-O), interest or LTCG from investment in shares or L.T. finance
10(32) Any individual Income of minor child clubbed u/s 64(1A) to the extent of Rs. 1,500 per child
10(33) All Assessee
(upto A.Y. 2002-03)
  1. Dividends declared/ paid by domestic companies excluding dividend u/s. 2(22)(e)
  2. Any income from units of UTI
  3. Any income from units of mutual fund specified under section 10(23D).
10A Industrial undertaking in
  1. Free Trade Zone (FTZ)
  2. Electronic Hardware Technology Park (EHTP) or Software Technology Park (STP) w.e.f. A.Y. 1994-95 or Special Economic Zone (SEZ) w.e.f. A.Y.2001-2002.
  1. Income for any 5 consecutive years out of first 8 years from the year of commercial production.
  2. W.e.f A.Y. 2000-2001 income for 10 years from the year of Commercial Production.
  3. W.e.f. A.Y. 2001-2002, income from exports eligible for deduction for 10 year of commercial production or up to A.Y.2009-2010, whichever is earlier.
  4. For A.Y. 2003-04, the deduction would be 90% of the profits derived by an undertaking.
10B Undertaking as a 100% Export-oriented Undertaking (100% EOU). As Above in s. 10A
10C Industrial undertaking in any Integrated Infrastructure Development Center or Industrial Growth Centre in North Eastern region. Income of ten consecutive A.Y.s from the year of production.
11 Charitable/religious trust / institution Income from property held for charitable or religious purposes