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Exempt Incomes and Allowances

Exempt Incomes and Allowances

Information of Section 10 of I T Act relating to Individuals and HUFs.

Following incomes shall not be included in computing the total taxable income:

  1. Agricultural Income {Section 10(1)]
  2. Subject to the provisions of sub-section (2) of section 64, any sum received by an individual as a member of a Hindu undivided family, where such sum has been paid out of the income of the family, or, in the case of any impartible estate, where such sum has been paid out of the income of the estate belonging to the family. {Section 10(2)]
  3. In the case of a partner of a firm, who is separately assessed as such, his share in the total income of the firm shall not be included. {Section 10(2A)]
  4. Any income by way of interest on moneys in a Non-Resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and the rules made thereunder, provided such individual accruing to a person resident outside India as defined in clause (q) of section 282 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account. {Section 10(4)(ii)]
  5. The sum received (including the bonus) under a life insurance policy (other than any sum received under sub-section (3) of section 80DDA or under a Keyman insurance policy).{Section (10)(10)(D)]
  6. The value of any travel concession or assistance received by, or due to a person, from his employer for himself and his family, in connection with his proceeding on leave to any place in India or from his employer or former employer for himself and his family, in connection with his proceeding to any place in India after retirement from service or after the termination of his service, subject to such conditions as may be prescribed (including conditions as to number of journeys and the amount which shall be exempt per head) having regard to the travel concession or assistance granted to the employees of the Central Government.
    The amount exempt under this clause shall in no case exceed the amount of expenses actually incurred for the purpose of such travel. {Section 10(5)]
  7. Any allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India for rendering service outside India.{Section 10(7)]
  8. View Exemptions available on Retirement benefits.Any special allowance or benefit, not being in the nature of a perquisite within the meaning of clause (2) of section 17, specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment , to the extent to which such expenses are actually incurred for that purpose. {Section 10(13A)]
  9. Income by way of interest, premium on redemption or other payment on such securities, bonds, annuity certificates, savings certificates, other certificates issued by the Central Government and deposits as the Central Government may, by notification in the Official Gazette, specify in this behalf, subject to such conditions and limits as may be specified in the said notifications.{Section 10(15)]
  10. Scholarships granted to meet the cost of education.{Section 10(16)]
  11. Any income to the extent such income does not exceed one thousand five hundred rupees in respect of each minor child whose income is so includible. {Section 10(32)]
  12. Any income arising from the transfer of a capital asset, being a unit of the Unit Scheme, 1964. {Section 10(33)]
  13. Any income by way of dividends referred to in section 115-O. {Section 10(34)]
  14. Any income by way of
    1. income received in respect of the units of a Mutual Fund specified under clause (23D); or
    2. income received in respect of units from the Administrator of the specified undertaking; or
    3. income received in respect of units from the specified company

    The Exemptions under this section are subjected to the conditions listed under the section. (Section 10(35)]

  15. Any income arising from the transfer of a long-term capital asset, being an eligible equity share in a company purchased on or after the 1st day of March, 2003 and before the 1st day of March, 2004 and held for a period of twelve months or more. {Section 10(36)]

Exempt Incomes and Allowances

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