Tax Exemption in India

The provision of tax exemption in India is included in the 3rd chapter of the Indian Income Tax Act, 1961. The chapter specifies the different exemptions on the different types of incomes. While calculating the tax on the annual income, certain specific incomes mentioned in the provision are deducted from the gross annual income for the purpose of taxation. To claim exemption, the concerned individual must produce documents pertaining to the claims and also keep in mind the clauses in the exemption chapter under the Income Tax Act, 1961. Claims not supported by proper documents are not entitled for exemption.

The different sections under tax exemption in India:

• Sec 10(1) for exemption on income from agriculture
  
  
• Sec 10(2) for exemption on income received from a Hindu undivided family(HUF) as a part of the family income or income from a family estate
  
  
• Sec 10(2A) for exemption on income of a partner of a firm who has separately filed his tax returns
  
  
• Sec 10(3) for exemption on income received in the non recurring or casual form but not exceeding Rs. 5,000 and in case of winnings from a horse race it should not exceed Rs. 2,500
  
  
• Sec 10(4)(i) for exemption on income from interests on bonds and securities which includes premium on repurchase of bonds
  
  
• Sec 10(4B) for exemption on income from interest on specific savings certificate issued by the central government
  
  
• Sec 10(5) for exemption on the value of the Leave Travel Concession (LTC) not more than actual amount spent
  
  
• Sec 10(5A) for exemption on specific payment to a non-resident person or a foreigner for the purpose of shooting a film in India
  
  
• Sec 10(5B) for exemption on income tax which is paid by the employer on behalf of the salary of certain employees from outside the country, indulged in scientific research
  
  
• Sec 10(6)(ii) for exemption on income received by the diplomats, ambassador, etc
  
  
• Sec 10(6)(vi) for exemption on income received by the employees of the foreign companies
  
  
• Sec 10(6)(vi a) for exemption on income received from any international philanthropic organizations
  
  
• Sec 10(11) for exemption on income received from Statutory Provident Fund and Public Provident Fund
  
  
• Sec 10(13) for exemption on income received from Superannuation Fund within a specific limit
  
  
• Sec 10(13A) for exemption on specific allowance to employees such as house rent allowance
  
  
• Sec 10(30) for exemption on income received in form of subsidy from the Tea board
  
  
• Sec 10(31) for exemption on income received in form of subsidy from the specific boards of the coffee, rubber, cardamom, and other commercial crops