AGRICULTURE & OTHER EXEMPTED INCOMES

Agricultural Income Share in HUF & Partnership Exemption to Non-residents Other exemptions

EXEMPTED INCOMES IN INDIA Agricultural income in India Payment received from Statutory PF Share in profit of a Partnership Maturity Payment on Life Insurance Share in profit of a HUF Dividend from Domestic/Indian company Payment received from PPF Leave Travel Concession Payment received from RPF Other exemptions .

.Agricultural income 10(1) Such income must satisfy the three conditions: y Rent or Revenue should be derived from Land. it is Exempt from the Tax but it is included in the total income to determine the rate of Tax at which the total without Agriculture Income would be liable to tax. y The Land must be used for Agricultural purposes. y The Land must be used for Agricultural purposes.  Then.

then market value of the agricultural produce must be debited in P&L a/c. And agriculture income= Market value of agricultural product-cost of agricultural product.PARTLY AGRICULTURE INCOME (RULE NO.7) If Agriculture produce.produced by the assessee is used in the non-agriculture finished product which is also produced by the assessee. .

The logic behind this is that HUF is already ta ed on this income and hence no ta should be levied on distribution of the income of HUF. .RECEIPT FR M HUF U/S 10(2) Any sum received by an Individual as a member of HUF out of estate of income of the family is e empt from ta and not included in the total income of the Individual.

PARTNER¶S SHARE IN PR U/S 10(2A) In FIT F FIRM case of a person who is a partner of a firm which is separately assessed in that case the amount of share in the profits of firm ascertain as per the partnership deed is e empted from ta . .

LEAVE TRAVEL C NCESSI N U/S 10(5) The Value of leave travel concession received or due to an individual is e empted to the e tent it is actually spent. ‡ From his employer for himself and his family. in connection with his proceeding on leave to any place in India. ‡ From his employer or former employer for him self and his family. Thus. in connection with his proceeding to any place in India after retirement service or After the termination of service. the e emption is available to any individual in respect of the value of any travel concession or assistance received by or due to him. .

Interest on specified savings certificates received by non-resident Indian citizens u/s 10(4B). .INTEREST T N N-RESIDENTS U/S 10(4) Interest on bonds issued by Government. Interest on FCNR deposits. Interest on NRE deposits.

legation..... for service in such capacity.. high commission.off an embassy. commission. or as a member off the staff off any off these officials.REMUNERATION RECEIVED BY FOREIGN DIPLOMAT [U/S 10(6)(II)] The e emption from ta is available in the case off an individual who is not a citizen off India in respect off the remuneration received by him as an official by whatever name called. . consulate or the trade representations off a foreign state. The e emption is given only to those officials of foreign country in which corresponding Indian officials enjoy a similar e emption.

in respect of income chargeable under the head Salaries received by him for service rendered in connection with his employment on a foreign ship.his total stay in India should not e ceed in aggregate a period of ninety days in the previous years. . However.resident.SALARY O F NO N-RESIDENT EMPLOYEE OF A FOREIGN SHIP [U/S 10(6) The Sub-clause (viii) off section 10((6)) gives the e emption from ta in case off an individual who iis not a citizen of India and non.

.FOREIGN ALLOWANCES AND PERQUISITES TO GOVERNMENT EMPLOYEES OUT SIDE INDIA [U/ S 10(7)] Sub-section (7) of section 10 states that any allowance or perquisites paid or allowed as such out side India by the Government to a citizen of India for rendering services outside India will be totally e empted from ta .

e. .LIC/PF EXEMPTIONS Amount received in life insurance policy [U/ S 10(10)] Any sum received under a life insurance policy. Payment from provident fund[U/S 10(11)] Any payment from a provident fund to which the provident funds Act. including the sum allocated by way of bonus on such policy shall be totally e empt from ta . applies or from any other provident fund set up by the central Government and notified in the official gazette (i. public provident fund)is totally e empted from ta . 1925.

is e empted from ta . to the e tent provided in rule of part A of schedule.RPF/ HRA Accum ulated balance from a recognized provident fund [u/s 10(12)] The accumulated balance due and becoming payable to an employee participating a recognized provident fund. Payment from an approved superannuating fund [U/S 10(13)]] House rent allowance [U/S 10(1 3A)] .

1985 [U/S 10(10BB)]. .OTHER EXEMPTIONS Income of a consultant under a technical assistant grant Agreement between the international organization and the Government of foreign state [U/S 10(8A)] Income of an Individual who is assigned to duties in India in connection with any technical assistance agreement entered and project in accordance with an agreement entered into by the central Government and the Agency[U/ S10(8B)]. Payment under the Bhopal Gas Leak Disaster (processing of claims) Act.

shall be e empted to the e tent such amount does not e ceeds five rupees.COMPENSATION ON RETIREMENT OF AN EMPLOYEE [U/S 10(10C)] At the time of his voluntary retirement or termination of his service in accordance with any scheme of voluntary retirement or in case of public sector company referred to in point (a) above. . a scheme of voluntary separation. shall be e empted to the e tent such amount does not e ceeds five lakh rupees.

SCHOLARSHIP/ MP ALLOWANCE Scholarship [U/S 10(16)] Scholarship granted to meet the cost of education is totally e empt from ta and will not be included in the computation of income. Allowances received by the member of parliament or state legislature [U/S 10(17)] .

PENSION RECEIVED BY A PERSON HONORED BY A GALLANTRY AWARD [U/S 10(18)] This clause provides e emption for any income by way of : Pension received by an individual who has been in service of central or state Gov. . Family pension received by any member of the family in case of death of the awardee.MahaVir Chakra´ or Vir Chakra. and has been awarded.´Parama Vir Chakra)´.

SUBMITTED TO:- MORADABAD BRANCH OF CIRC BY:- DHRUV AGARWAL .

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