This site provides comprehensive information on
India Tax Exemption. The site also focuses on the several
tax exemptions offered in India.
India has a well developed three-tier federal
tax structure. According to Chapter III of the Income Tax Act, 1961 there is a provision of
exemptions in income tax.
India tax exemptions are specified incomes on which a person can get exemptions. It means that at the time of calculating annual income, this type of income will not come under the
purview of tax. Some of these exempted incomes are as follows:
Agriculture Income.
Share of partner in total income of a firm which is assessed separately.
Interest on securities and bonds including premium on redemption of bonds by Non Residents.
Interests on amounts in Non-resident (External) account in any bank in India being maintained as per FERA, 1973.
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 by an individual citizen.
Income of individuals engaged in research work in India under duly approved research schemes and remuneration received from foreign government for training in a government office or undertaking as employee.
Gratuity not exceeding Rs.3.5 lakh.
Receipt in respect of commutation of pension as per specified limits.
Leave encashment not exceeding 8 months salary and subject to specified conditions.
Receipt of amount on voluntary retirement up to Rs. 5,00,000.
Payment on a Life insurance policy, including bonus thereon but excluding therefrom amounts received u/s 80DDA(3).
Receipt of Payment from Public provident fund or Statutory Provident Fund.
Receipt of Payment from superannuation fund.
Special benefits and allowance to employee viz., house rent allowance.
Interest payable to any bank incorporated outside India and approved by RBI.
Scholarships granted to meet the cost of education
Receipt of any amount in connection with an award instituted by Government etc.
Income of a university or other educational institution.
Income of a hospital or other such institution working exclusively for philanthropic purposes.
Income of news agency having been set up in India for the sole purpose of collection & distribution of news.
Income of specified mutual funds registered and/or set up under /by SEBI Act, 1992.
Income of Exchange risk administration fund having been set up by public financial institutions either jointly or separately as per specified conditions.
For further information on India Tax Exemption, visit www.incometaxindia.gov.in.
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