Exempt Income Items & its section: INCOME TAX

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Exempt Income Items & its section

Section                                              Particulars

10(1)                   Agricultural income.

10(2)                     Share received by the member from the Income of HUF.

10(2A)                  Share of profit of a partner in the Income of a firm.

10(4)                     (i) Interest on Notified Securities & Bonds held by a NR.

    (ii) Interest on NR (External) Account in any bank in India as per the rules of FEMA.

    (B) Interest on Saving Certificate to NR.

10(6)                     Remuneration to certain Individuals who are not Citizens of India.

10(7)                    Allowance paid o/s India to Indian Citizen for services rendered o/s India.

10(10BB)              Payment under Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985.

10(10BC)              Compensation received or receivable on any disaster.

10(10CC)             Non-monetary  perquisites Tax paid by employer.

10(10D)                Amount received under a Life Insurance Policy.

10(11)                   Withdrawal of Accumulated balance from Provident Fund.

10(11A)                Interest & withdrawals from Sukanya Samriddhi Account

10(12)/(13)          Payments from RPF/ Any payment from Approved SAF.

10(15)                   Interest, premium or bonus on specified investments issued by CG/SG.

10(16)                   Scholarships granted to meet the Cost of Education

10(17)                   Daily & constituency allowance, etc, received by MPs & MLAs

10(17A)                Award or Reward

10(18)                   Pension received by certain awardees or any member of their families

10(22D)                Income of notified Mutual Funds

10(26)                   Income of a member of Scheduled Tribe (ST)

10(26AAA)           Income of a Sikkemese Individual

10(30)/(31)          Tea board Subsidy & Other Subsidies.

10(34)/(35)          Dividend from shares/units of MF to be exempt in the hands of the shareholders

10(34A)                Income arising to a shareholder on account of buy back of unlisted shares.

10(37)                   CG on compensation on compulsory acquisition of urban agricultural land.

10(43)                   Amount received by Individual as Loan under Reverse Mortgage.

10(45)                   Notified Allowance or Perquisite paid to Chairman/Member of UPSC


Exempt Income Items

Following Receipts will also be Exempt:

10(10CC)            Non-Monetary Perquisites Tax paid by the Employer.

10(11)                   Any Payment from PF/PPF set up by CG.

10(11A)                Interest & Withdrawals from Sukanya Samriddhi A/c.*

10(12)                   Payment from Accumulated Balance of RPF to the employee.

10(12A)                Any payment from NPS trust to an employee on closure/opting out of scheme u/s

       80CCD is exempt upto 40% of total amount payable to him.

10(12B)                Any payment from NPS trust to an employee on partial withdrawals out of his

        account from NPS referred u/s 80CCD is exempt upto 25% of contributions made

        by him.

10(13)                   Any Payment from Approved Superannuation Fund.

10(15)                   (i) Interest on Gold Deposit Bonds (ii) Interest on bonds issued by LA.

10(16)                   Scholarships granted to meet the Cost of Education.

10(17)                   Daily & Constituency allowance received by MPs & MLAs.

10(17A)                Awards or Rewards given by CG/SG (in cash/kind).

10(19)                   Family Pension received by Family Members of Armed Forces who died on duty.

10(19A)                Annual value of  the one palace of the ex-ruler

10(21)                   Income of an approved research association

10(22B)                Income of news agency set-up in India if such news agency does not distribute its                                   income to the member.

10(23C)                Income of certain funds of National Importance set up by CG:

    (i) Swachh Bharat Kosh (ii) Clean Ganga Fund or such other specified funds.

    (iii) University/Educational institution formed solely for educational purpose & not                        for profit.

    (iv) Hospital/medical institution formed solely for philanthropic purpose & not for                         profit.

10(23D)                Income of Notified Mutual Funds 

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