According to Chapter III of the Income Tax Act, 1961 there is a provision
of exemptions in income tax. There are few specified income on which a
person can get exemptions. It means that at the time of calculating annual
income, this type of income will not be added. For claiming any of these
exemptions, it is necessary to furnish documents which shows that your
income comes under this list. If a person don't furnish required documents
then he/ she will not be entitled for this
|
Income Type |
Under Section |
| Agriculture Income |
10(1) |
| Receipts from a Hindu Undivided Family
being paid out of family's income or in the case of an impartible
estate belonging to family being paid out of such estate's income |
10(2) |
| Share of partner in total income of a
firm which is assessed separately as such. |
10(2A) |
| Receipts being in the nature of casual
and non-recurring nature not exceeding Rs. 5,000/- (Rs. 2500/- in the
case of winnings from horse races, etc). |
10(3) |
| Interest on securities and bonds
including premium on redemption of bonds by Non Resident as notified
by Central Government. |
10(4)(i) |
| Interests on amounts in Non-resident
(External) Account in any bank in India being maintained as per FERA,
1973 and rules thereunder by an individual.. |
10(4)(ii) |
| Interest on specified Central
Government's Savings Certificates which were subscribed to in
convertible foreign exchange remitted from a country outside India as
per FERA and rules thereunder by an individual citizen or a person of
Indian Origin.. |
10(4B) |
| Value of Leave Travel Concession or
assistance not exceeding the amount actually spent. |
10(5) |
| Specified remuneration to a foreigner and
non-resident individual for shooting of film in India who comes solely
for such purpose. |
10(5A) |
| Income-tax paid by the employer carrying
on scientific research in respect of the salary income of certain
technicians from abroad commencing from 1.4.93 subject to conditions
stated therin. |
10(5B) |
| Incomes of foreginers as passage money. |
10(6)(i) |
| Remuneration received by an ambassador, diplomats,
etc. as specified. |
10(6)(ii) |
| Remuneration received by employees of foreign
companies in respect of services rendered during stay in India subject
to conditions as specified. |
10(6)(vi) |
| Remuneration received from foreign philanthropic
institutions etc. in respect of services rendered in India subject to
both the institutions and the purposes thereof being approved by the
Central Govt. |
10(6)(via) |
| Income-tax paid by the employer carrying on scientific
research in respect of the salary income of certain technicians from
abroad commencing from 1.4.88 till 31.3.93 subject to conditions
stated therein. |
10(6)(viia) |
| Salaries to non-resident employed on a foreign ship
subject to aggregate stay of not more than 90 days in the previous
year. |
10(6)(viii) |
| Salaries to non-residents professors or teachers. |
10(6)(ix) |
| Income of individuals engaged in research work in
India under duly approved research schemes. |
10(6)(x) |
| Remuneration received from foreign
government for training in a government office or undertaking as
employee. |
10(6)(xi) |
| Death-cum-retirement gratuity payable to
specified members of civil or defence services. |
10(10)(i) |
| Gratuity not exceeding Rs.3 ½ Lakhs
payable under the Payment of Gratuity Act, 1972 |
10(10)(ii) |
| Any other gratuity not exceeding Rs. 2 ½
Lakhs received by employee on retirement or termination of his
services or by legal heirs on death of employee limited to 15 days
salary for each completed year of service. |
10(10)(iii) |
| Receipt in respect of commutation of
pension as per specified limits. |
10(10A) |
| Leave encashment not exceeding 8 months
salary and subject to specified conditions & limits. |
10(10AA) |
| Compensation paid to employees on account
of retrenchment under Industrial Disputes Act, 1947: Ascertainment of
amount to be either minimum Rs. 50,000 or as per the said Act
whichever is less. |
10(10B) |
| Payments made under Bhopal Gas Leak
Disaster Act, 1985. |
10(10BB) |
| Receipt of amount on voluntary retirement
upto Rs. 5,00,000 subject to specified scheme and guidelines and
necessary approval. |
10(10c) |
| Payment on a Life Insurance Policy,
including bonus thereon but excluding therefrom amounts received u/s
80DDA(3). |
10(10D) |
| Receipt of Payment from Public Provident
Fund or Statutory Provident Fund. |
10(11) |
| Payment to employee from recognised
provident fund in respect of accumulated balance standing to the
credit thereof. |
10(12) |
| Receipt of Payment from Superannuation
Fund subject to specified conditions and limits. |
10(13) |
| Special allowance to employee viz., house
rent allowance. |
10(13A) |
| Special benefit to employees within
meaning of s.17(2) subject to conditions stated therein. |
10(14) |
| Receipt of premium on account of Exchange
risk from borrower of foreign currency. |
10(14A) |
| Receipt of interest or premium on
redemption etc. on notified securities, bonds etc. such as monthly
payment on 15-year Annuity Certificates subject to specified condition
and limits. |
10(15)(i) |
| Interest on the new Capital Investment
Bonds. |
10 (15)(iib) |
| Interest income from notified Relief
Bonds w.e.f., assessment year 1989-90. |
10 (15)(iic) |
| Interest on notified bonds owned by a
non-resident etc. and bought in foreign exchange subject to certain
conditions. |
10 (15)(iid) |
| Interest on securities under the Ceylon
Monetary Law Act, 1949 |
10 (15)(iii) |
| Interest payable to any bank incorporated
outside India and approved by RBI. |
10 (15)(iiia) |
| Receipt of interest from Govt. etc. on
moneys lent to them from sources outside India. |
10 (15)(iv)(a) |
| Receipt of interest from industrial
undertaking in India being approved foreign financial institutions in
respect of moneys lent to it. |
10 (15)(iv)(b) |
| Receipt of interest from industrial
undertaking in India in respect of moneys lent to it outside India for
purchases of raw materials, plant & machinery, etc. from abroad. |
10 (15)(iv)(c) |
| Receipt of interest from specified
financial institution in India in respect of moneys lent to it from
sources outside India. |
10 (15)(uv)(d) |
| Receipt of interest from financial
institution other than those covered by 15(iv)(d) above in respect of
moneys lent to it from sources outside India for the purposes as
specified. |
10 (15)(iv)(e) |
| Receipt of interest from industrial
undertaking in India in respect of moneys lent to it in foreign
currency from sources outside India. |
10 (15)(iv)(f) |
| Receipt of interest from scheduled bank
in respect of deposits made in foreign currency subject to same being
duly approved by the RBI. |
10(15) (iv)(fa) |
| Receipt of interest from public company
having been formed and registered in India to provide long-term
finances for construction/purchase of houses in respect of moneys lent
to it in foreign currency from sources outside India. |
10 (15)(iv)(g) |
| Receipt of interest from public sector
company in respect of bonds and debentures as notified. |
10 (15)(iv)(h) |
| Receipt of interest from Government in
respect of deposits made in its specified schemes from funds due on
retirement. |
10 (15)(iv)(i) |
| Receipt of interest on securities held by
Welfare Commissioner, Bhopal Gas Victims as also on deposits made with
RBI or Public Bank from 1-4-1994 for the benefit of such victims. |
10 (15)(v) |
| Receipt of payment from an Indian company
carrying on business of operation of aircraft, to acquire an aircraft
or aircraft engine excluding spares etc., on lease from foreign Govt.
or enterprise under an agreement entered into before 1-4-1997 and
being duly approved. |
10(15A) |
| Scholarships granted to meet the cost of
education |
10(16) |
| Daily allowances received by MPs, MLAs
and MLCs. |
10(17)(ii) |
| Receipt of allowances by MPs under the
Member of Parliament [Constituency Allowance] Rules, 1986. |
10(17)(ii) |
| Receipt of allowances by MLAs under the
limit of Rs. 2,000/- per month |
10(17)(iii) |
| Receipt of any amount in connection with
an award, including award in kind, for literary, scientific or
artistic work etc. instituted by Government etc. |
10(17A)(i) |
| Receipt of amount in connection with a
reward including award in kind from Government in respect of public
interest purposes. |
10 (17A)(ii) |
| Receipt of ex-gratia payments from
Government to ex-rulers in respect of abolition of their privy purses.
|
10(18A) |
| Amount calculated as annual value being
the notional value in respect of any one palace to be treated for the
purpose as residence by ex-ruler. |
10(19A) |
| Income of a local authority as specified.
|
10(20) |
| Income of a development or housing
improvement authority in a city and/or village. |
10(20A) |
| Income of approved scientific and
research association. |
10(21) |
| Income of a university or other
educational institution. |
10(22) |
| Income of a hospital or other such
institution working exclusively for philanthropic purposes and not for
profit. |
10(22A) |
| Income of news agency having been set up
in India for the sole purpose of collection & distribution of news
provided its income in any way is not distributed to its members. |
10(22B) |
| Income of associations for promotion of
sports, etc. as specified. |
10(23) |
| Any income of associations or
institutions for controlling professions of law, medicine,
engineering, accountancy, architecture, etc., except incomes derived
from house property or for rendering any specified services or
interest on/dividends from its investments. |
10(23A) |
| Income of regiment Fund or Nonpublic fund
of armed forces established for welfare of past and present members
|
10(23AA) |
| Income of a fund established for welfare
of employees or their dependents, the employees being members thereof
subject to fulfillment of conditions as to approval and otherwise.
|
10 (23AAA) |
| Income of fund set up by LIC from
1-4-1996 in respect of pension scheme subject to conditions as
specified. |
10 (23AAB) |
| Income of a charitable trust or
registered society, etc. working exclusively for development of khadi
& village industries and not for profit as per conditions specified.
|
10(23B) |
| Income of Khadi & Village Board, etc..
|
10(23BB) |
| Income received by a statutory public
religious or charitable trust or endowment. |
10 (23BBA) |
| Income of European Economic Community
derived in India in the shape of interest, dividends or capital gains
arising out of investments from its funds under such schemes as
notified. |
10 (23BBB) |
| Any income of SAARC Fund having been
established under Colombo Declaration dt. 21-12-91 by Heads of State
or Government of member countries for the purposes of development of
regional projects. |
10 (23BBC) |
| Income on behalf of Prime Minister's
National Relief Fund. |
10 (23C)(i) |
| Income on behalf of Prime Minister's Fund
(Promotion of Folk Art.) |
10 (23C)(ii) |
| Income on behalf of Prime Minister's Aid
to Students Fund. |
10 (23C)(iii) |
| Income of National Foundation for
Communal Harmony. |
10 (23C) (iii)(a) |
| Income of any fund or institution
established for charitable cause. |
10 (23c)(iv) |
| Income of any trust or institution
established wholly for public religious and/or charitable purposes
subject to specified conditions. |
10 (23c)(v) |
| Income of specified Mutual Funds
registered and/or set up under /by SEBI Act, 1992; public-sector
bank/financial institution or RBI fulfilling such conditions as
specified. |
10(23D) |
| Income of Exchange Risk Administration
Fund having been set up by public financial institutions either
jointly or separately as per specified conditions. |
10(23E) |
| Income in the shape of dividends or
long-term capital gains derived by a venture capital fund/company from
its investments in the equity of a venture capital undertaking |
10(23F) |
| Income in the shape of dividends,
interest or long-term capital gains derived by a infrastructure
capital fund/company from its investments in the equity or long-term
finance of any infrastructure facility oriented enterprise fulfilling
such conditions as specified. |
10(23G) |
| Income of registered trade-union relating
to "income from house property" and "income from other sources" as
specified. |
10(24) |
| income received by trustees of Provident,
Superannuation & Gratuity Funds relating to interest on securities and
capital gains resulting from sale or exchange of such securities as
specified. |
10(25) |
| Income of Employees State Insurance Fund
as specified. |
10(25A) |
| Income of member of Scheduled tribes as
specified. |
10(26) |
| Income accruing to any person from any
source of income in the district of Ladakh or outside India subject to
the person being resident in the said district in the relevant
previous year and satisfying other conditions as specified. |
10(26A) |
| Income from winnings from lottery,
agreement for draw in respect of which having been entered into upto
28-2-89 between Sikkim Govt. and organising agents of such lottery
subject to fulfilling of such condition as specified. {to be omitted
from 1-4-1998} |
10(26AA) |
| income of any statutory corporation
formed for promoting the interests of Scheduled Castes or Scheduled
tribes, etc., as specified. |
10(26B) |
| Income of any statutory corporation
formed for promoting the interests of the members of any minority
community. |
10(26BB) |
| income of any cooperative society formed
for promoting the interests of members of Scheduled Caste & Tribes.
|
10(27) |
| Any amount adjusted or paid relating to
Tax Credit Certificates. {To be omitted from 1-4-1998} |
10(28) |
| Income of an authority from letting of
godowns/warehouses for storage, processing or facilitating marketing
of goods as specified. |
10(29) |
| Receipt by way of subsidy received from
Tea Board as specified. |
10(30) |
| Receipt by way of subsidy received from
the concerned Board by an assessee growing or manufacturing rubber,
coffee, cardamom and other notified commodities. |
10(31) |
| Income relating to minor child if clubbed
u/s 64(1A) in the hands of the assessee not exceeding Rs.1,500 in
respect of each minor chid. |
10(32) |
| Any income by way of dividends (whether
interim or otherwise) declared, distributed or paid by a Domestic
Company on or after 1-6-1997 as referred to in section 115-O. |
10(33) |
| Any profits and gains of newly
established industrial undertakings in free trade zones, electronic
hardware/software technology parks for any five consecutive assessment
years within a block of eight years from the assessment year
corresponding to previous year in which production started subject to
fulfilling all the conditions as specified. |
10A |
| Any profits and gains of newly
established 100% export-oriented units for any five consecutive
assessment year within a block of eight years from the assessment year
corresponding to previous year in which production started subject to
fulfilling all the conditions as specified. |
10B |
| Income of any person from the property
held under trust wholly or in part for charitable or religious
purposes as specified in detail and subject to the provisions of
sections 60 to 63. |
11 |
| Receipt of any voluntary contributions by
a trust/institution created/ established wholly for charitable or
religious purposes excluding the contributions made to it with
specific direction to form part of corpus: Such voluntary
contributions be deemed to be income from property in terms of section
11. |
12 |
| Income of political party chargeable as
income from house property or other sources or by way of voluntary
contributions received by it from any person subject to conditions as
specified. |