Non taxable income: No tax is levied on these five types of income, know the rules

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Non-Taxable Income: Every person who pays income tax is always looking for ways to save tax. For this, investments are made in many schemes. But do you know that you do not have to pay tax on these 5 types of income? This is very important for the purpose of saving ITR.

Every taxpayer has to pay tax on the income he receives from his business or employment. This tax is levied on one percent of his income limit. But there is also a provision for non-taxable income in income tax. These have been kept out of the scope of income tax.

Under the Income Tax Act, 1961, income derived from agriculture has been kept out of the purview of income tax. Hindu undivided family income, income from immovable property or income from ancestral property is not taxable.

As per Section 56(ii) of the Income Tax Act, gifts including property, jewellery, money etc. given by a relative are exempt from tax. However, there is exemption only up to Rs 50,000 on gifts received from any person other than a relative.

The amount of gratuity received after the death or retirement of a government employee is completely tax free. Similarly, private sector employees get exemption on gratuity amount up to Rs 10 lakh received on account of retirement or disability. As per the Income Tax Act, tax relief on gratuity also depends on other factors.

Certain interest on certain income is exempt from tax under Section 10(15) of the Income Tax Act. This includes interest earned on Suvarna Vada Yojana, local authority and infrastructure bonds and interest earned under Sukanya Samriddhi Yojana. There is no tax on this.

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