All receipts which give rise to income
are taxable unless they are specifically exempted from tax under
the Act. Such exempted income are enumerated in section 10 of
the Act. The same are summarised in the table below:-
| Section |
Nature of Income |
Exemption limit, if any |
| 1 |
2 |
3 |
| 10(1) |
Agricultural income |
|
| 10(2) |
Share from income of HUF |
|
| 10(2A) |
Share of profit from firm |
|
| 10(3) |
Casual and non-recurring receipts |
Winnings from races Rs.2500/- other receipts
Rs.5000/- |
| 10(10D) |
Receipts from life Insurance Policy |
|
| 10(16) |
Scholarships to meet cost of education |
|
| 10(17) |
Allowances of MP and MLA. |
For MLA not exceeding Rs. 600/- per month |
| 10(17A) |
Awards and rewards |
|
| |
(i) from awards by Central/State Government |
|
| |
(ii) from approved awards by others |
|
| |
(iii) Approved rewards from Central & State
Governments |
|
| 10(26) |
Income of Members of scheduled tribes residing
in certain areas in North Eastern States or in the Ladakh
region. |
Only on income arising in those areas or interest
on securities or dividends |
| 10(26A) |
Income of resident of Ladakh |
On income arising in Ladakh or outside India |
| 10(30) |
(i) Subsidy from Tea Board under approved scheme
of replantation |
|
| 10(31) |
(ii) Subsidy from concerned Board under approved
Scheme of replantation |
|
| 10(32) |
Minor's income clubbed with individual |
Upto Rs. 1,500/- |
| 10(33) |
Dividend from Indian Companies, Income from
units of Unit Trust of India and Mutual Funds, and income
from Venture Capital Company/fund. |
|
| 10(A) |
Profit of newly established undertaking in free
trade zones electronic hardware technology park on software
technology park for 10 years (net beyond 10 year from 2000-01) |
|
| 10(B) |
Profit of 100% export oriented undertakings
manufacturing articles or things or computer software for
10 years (not beyond 10 years from 2000-01) |
|
| 10(C) |
Profit of newly established undertaking in
I.I.D.C or I.G.C. in North-Eastern Region for 10 years |
|
| Income from interest |
| 10(15)(i)(iib)(iic) |
Interest, premium on
redemption or other payments from notified securities, bonds,
Capital investment bonds, Relief bonds etc.
|
To the extent mentioned in notification |
| 10(15)(iv)(h) |
Income from interest payable by a Public Sector
Company on notified bonds or debentures |
|
| 10(15)(iv)(i) |
Interest payable by Government on deposits
made by employees of Central or State Government or Public
Sector Company of money due on retirement under a notified
scheme |
|
| 10(15)(vi) |
Interest on notified Gold Deposit bonds |
|
| 10(15)(vii) |
Interest on notified bonds of local authorities |
|
| Income from Salary |
| 10(5) |
Leave Travel assistance/ concession |
Not to exceed the amount payable by Central
Government to its employees |
| 10(5B) |
Remuneration of technicians having specialised
knowledge and experience in specified fields (not resident
in any of the four preceding financial years) whose services
commence after 31.3.93 and tax on whose remuneration is paid
by the employer |
Exemption in respect of income
in the from of tax paid by employer for a period upto 48
months
|
| 10(7) |
Allowances and perquisites by the government
to citizens of India for services abroad |
|
| 10(8) |
Remuneration from foreign governments for duties
in India under Cooperative technical assistance programmes.
Exemption is provided also in respect of any other income
arising outside India provided tax on such income is payable
to that Government. |
|
| 10(10) |
Death-cum-retirement Gratuity- |
|
| |
(i) from Government |
|
| |
(ii) Under payment of Gratuity Act 1972 |
Amount as per Sub-sections (2), (3) and (4)
of the Act. |
| |
(iii) Any other |
Upto one-half months salary for each year of
completed service. |
| 10(10A) |
Commutation of Pension- |
|
| |
(i) from government, statutory Corporation etc. |
|
| |
(ii) from other employers |
Where gratuity is payable - value of 1/3 pension.
Where gratuity is not payable - value of 1/2 pension. |
| |
(iii) from fund set up by LIC u/s 10(23AAB) |
|
| 10(10AA) |
Encashment of unutilised earned leave |
|
| |
(i) from Central or State government |
|
| |
(ii) from other employers |
Upto an amount equal to 10 months salary or
Rs. 1,35,360/- which ever is less |
| 10(10B) |
Retrenchment compensation |
Amount u/s. 25F(b) of Industrial Dispute Act
1947 or the amount notified by the government, whichever is
less. |
| 10(10C) |
Amount received on voluntary retirement or
termination of service or voluntary separation under the schemes
prepared as per Rule 2BA from public sector companies, statutory
authorities, local authorities, Indian Institute of Technology,
specified institutes of management or under any scheme of
a company or Co-operative Society |
Amount as per the Scheme subject to maximum
of Rs. 5 lakh |
| 10(11) |
Payment under Provident Fund Act 1925 or other
notified funds of Central Government |
|
| 10(12) |
Payment under recognised provident funds |
To the extent provided in rule 8 of Part A of
Fourth Schedule |
| 10(13) |
Payment from approved Superannuation Fund |
|
| 10(13A) |
House rent allowance |
least of- |
| |
|
(i) actual allowance |
| |
|
(ii) actual rent in excess of 10% of salary |
| |
|
(iii) 50% of salary in Mumbai, Chennai, Delhi
and Calcutta and 40% in other places |
| 10(14) |
Prescribed [See Rule 2BB (1)] special allowances
or benefits specifically granted to meet expenses wholly necessarily
and exclusively incurred in the performance of duties |
To the extent such expenses are actually incurred. |
| 10(18) |
Pension including family pension of recipients
of notified gallantry awards |
|
| Exemptions to Non-citizens only |
| 10(6)(i)(a) and (b) |
(i) passage money from employer for the employee
and his family for home leave outside India |
|
| |
(ii) Passage money for the employee and his
family to 'Home country' after retirement/termination of service
in India. |
|
| 10(6)(ii) |
Remuneration of members of diplomatic missions
in India and their staff, provided the members of staff are
not engaged in any business or profession or another employment
in India. |
|
| 10(6)(vi) |
Remuneration of employee of foreign enterprise
for services rendered during his stay in India in specified
circumstances provided the stay does not exceed 90 days in
that previous year. |
|
| 10(6)(xi) |
Remuneration of foreign Government employee
on training in certain establishments in India. |
|
| Exemptions to Non-residents only |
| |
Refer Chapter VII (Para 7.1.1) |
|
| |
Chapter VIII (Para 8.4) |
|
| |
Chapter IX |
|
| |
Chapter X (Para 10.4) |
|
| Exemptions to Non-resident Indians
(NRIs) only |
| |
Refer Chapter XI |
|
| Exemptions to funds, institutions,
etc. |
| 10(14A) |
Public Financial Institution from exchange
risk premium received from person borrowing in foreign currency
if the amount of such premium is credited to a fund specified
in section 10(23E) |
|
| 10(15)(iii) |
Central Bank of Ceylon from interest on securities |
|
| 10(15)(v) |
Securities held by Welfare Commissioners Bhopal
Gas Victims, Bhopal from Interest on securities held in Reserve
Bank's SGL Account No. SL/DH-048 |
|
| 10(20) |
any local Authority |
(a) Business income derived from Supply of
water or electricity any where. Supply of other commodities
or service within its own jurisdictional area. |
| |
|
(b) Income from house property, other sources
and capital gains. |
| 10(20A) |
Housing or other Development authorities |
|
| 10(21) |
Approved Scientific Research Association |
|
| 10(23) |
Notified Sports Association/ Institution for
control of cricket, hockey, football, tennis or other notified
games. |
|
| 10(23A) |
Notified professional association/institution |
All income except from house property, interest
or dividends on investments and rendering of any specific
services |
| 10(23AA) |
Regimental fund or Non-public fund |
|
| 10(23AAA) |
Fund for welfare of employees or their dependents. |
|
| 10(23AAB) |
Fund set up by LIC of India under a pension
scheme |
|
| 10(23B) |
Public charitable trusts or registered societies
approved by Khadi or Village Industries commission |
|
| 10(23BB) |
Any authority for development of khadi or village
industries |
|
| 10(23BBA) |
Societies for administration of public, religious
or charitable trusts or endowments or of registered religious
or charitable Societies. |
|
| 10(23BBB) |
European Economic Community from Income from
interest, dividend or capital gains |
|
| 10(23BBC) |
SAARC Fund |
|
| 10(23C) |
Certain funds for relief, charitable and promotional
purposes, certain educational or medical institutions |
|
| 10(23D) |
Notified Mutual Funds |
|
| 10(23E) |
Notified Exchange Risk Administration Funds |
|
| 10(23EA) |
Notified Investors Protection Funds set up
by recognised Stock Exchanges |
|
| 10(23FB) |
Venture capital Fund/ company set up to raise
funds for investment in venture Capital undertaking |
Income from investment in venture capital undertaking |
| 10(23G) |
Infrastructure capital fund, or infrastructure
capital company |
Income from dividend, interest and long term
capital gains from investment in approved infrastructure enterprise |
| 10(24) |
Registered Trade Unions |
Income from house property and other sources |
| 10(25)(i) |
Provident Funds |
Interest on securities and capital gains from
transfer of such securities |
| 10(25)(ii) |
Recognised Provident Funds |
|
| 10(25)(iii) |
Approved Superannuation Funds |
|
| 10(25)(iv) |
Approved Gratuity Funds |
|
| 10(25)(v) |
Deposit linked insurance funds |
|
| 10(25A) |
Employees State Insurance Fund |
|
| 10(26B)(26BB) and (27) |
Corporation or any other body set up or financed
by and government for welfare of scheduled caste/ scheduled
tribes/backward classes or minorities communities |
|
| 10(29) |
Marketing authorities |
Income from letting of godown and warehouses |
| 10(29A) |
Certain Boards such as coffee Board and others
and specified Authorities |
|
