look news india
Income Tax: If you earn from many other ways apart from salary, then this news is of your use. This is because generally income tax is levied on every income. It does not only include salary but apart from salary, many things like interest from savings, income from home, side business, capital gains are also included in it. But there are some income sources on which not even a rupee is taxed. Today we are going to tell you about 10 such incomes, where not even a rupee is taxed.
No tax is levied on these incomes
Income from EPF
The amount deposited by you in the PF account is exempt from income tax under Section 80C of the Income Tax Act. The amount deposited by the employer in your EPF account is also tax exempt. The condition is that this amount should not exceed 12% of your basic salary. If the amount is more than this, then you will have to pay income tax on the remaining amount.
Returns up to Rs 1 lakh from shares or equity mutual funds
If you have invested in shares or equity mutual funds, then on selling them after one year, a return of up to Rs 1 lakh 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 from investment in shares or equity mutual funds.
gifts received at the wedding
If you receive a gift from friends or relatives on the occasion of marriage, then 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 marriage. If your marriage is on March 16 and the gift is given six months later, then you will not get income tax exemption on it. Also, the value of the gift should not exceed Rs 50,000.
Interest on Savings Account
If you get interest up to Rs 10,000 in a year from your bank savings account, you get income tax exemption on it under section 80TTA of the Income Tax Act. If you get interest more than Rs 10,000 annually on a savings account, you will have to pay income tax on the excess amount.
Profit earned from a partnership firm
If you are a partner in a firm, the amount you receive as a share of profit is exempt 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 receive.
Life insurance claim or maturity amount
If you have bought a life insurance policy, then the amount received at the time of claiming it or on its maturity is completely exempt 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.
Amount received in VRS
Many people take voluntary retirement (VRS) from their job. If you have also taken VRS, then the amount you get up to Rs 5 lakh is exempt from income tax. This facility is only for employees working in government or PSU (public sector companies), not for people working in the private sector.
Property received by way of inheritance or will
If you have also inherited property, jewellery or cash from your parents, then you will 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 will 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.
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.
Providing food at a business
If you are a businessman, you have to meet many people during your business. This includes customers, vendors and other employees. The cost of providing them food and drinks is also included in the business process. You should keep a bill for such expenses and present it as a business expense. If you follow this process, you can save income tax on this amount.