Here are some of the important items of income, which are fully exempt from income tax and which can be utilised by a resident individual Indian assessee for the purpose of tax planning.

1. Agricultural income
2. Receipts from HUF
3. Share from a partnership firm
4. Allowance for foreign service
5. Gratuities
6. Commutation of pension
7. Leave salary of central government employees
8. Voluntary retirement or separation payment
9. Life insurance receipts
10. Payment received from provident funds
11. Certain types of interest payment
12. Scholarship and awards, etc.
13. Gallantry awards, etc. Section 10(18)
14. Dividends on shares and units – Section 10(34) & (35)
15. Long-term capital gains of transfer of securities – Section 10(38)
16. Amount received by way of gift, etc – Section 10(39)

Categories: Donations, Income Tax Return Preparation, Income Tax Saving Tips, Investment schemes, Refinancing, Save Income Tax, Save Tax Through Investments, Service Tax, Tax Deductions, Tax Exempted Income, Tax Free Income, Tax Laws, Value added Tax (VAT)
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