06/06/2024
Income Exempt from Tax as Per Section 10
though exempt from tax they need to be *reported* in Income tax return.
Most income that is exempted from tax is listed under Section 10 of the Income Tax Act. The list of income that is deemed or considered to be free from taxation. Exempted income specified under Section 10 is as follows:
Section Exemptions
Section 10(1) Income earned through agricultural means
Section 10(2) Any amount received by an individual through a coparcener from an HUF
Section 10(2A) Income received by partners of a firm, as shared between them
Section 10(4)(i) Any interest that has been paid to a person who is not a resident Indian
Section 10(4)(ii) Any interest that has been paid to the account of a person who is not a resident Indian
Section 10(4B) Any interest that has been paid to a person who is not a resident Indian, but of Indian origin
Section 10(5) Concession on travel given to an employee who is also a citizen of India
Section 10(6) Any income earned or received by a nonIndian citizen
Section 10(6A), (6B), (6BB), (6C) Government tax paid on the income of a foreign firm
Section 10(7) Allowances received by government employees stationed abroad
Section 10(8) Income earned by foreign employees in India under the Cooperative Technical Assistance Program
Section 10(8A) Income earned by a consultant
Section 10(8B) Income earned by a consultant's staff or employees
Section 10(9) Income earned by any family member of a foreign employee in India under the Cooperative Technical Assistance Program
Section 10(10) Gratuity
Section 10(10A) The commuted value of the pension earned by an individual
Section 10(10AA) Any amount earned via encashment of leave at the time of retirement
Section 10(10B) Compensation paid to workers due to relocation
Section 10(10BB) Any remittance obtained as per the Bhopal Gas Leak Disaster Act 1985
Section 10(10BC) Any compensation obtained in the event of a disaster
Section 10(10C) Compensation in lieu of retirement from a PBC or any other firm
Section 10(10CC) Any income received through taxation on perquisites
Section 10(10D) Any amount acquired via a Life insurance policy
Section 10(11) Any payment received via the Statutory Provident Fund
Section 10(12) Any payment received via a recognised or authorised Fund
Section 10(13) Any payment received through a Superannuation Fund
Section 10(13A) House Rent Allowance
Section 10(14) Allowances utilised to meet business expenses
Section 10(15) Income received in the form of interest
Section 10(15A) Income received by an Indian firm through the lease of an aircraft from a foreign firm or government
Section 10(16) Income in the form of a scholarship
Section 10(17) Allowances granted to MLCs, MLAs or MPs
Section 10(17A) Income received in the form of a government award
Section 10(18) Income received in the form of pension by winners of awards for heroism
Section 10(19) Income received by family members of the armed forces in the form of pension
Section 10(19A) Income received from a single palace of an exruler
Section 10(20) Income received by a localised body or authority
Section 10(21) Income received by an association involved with scientific research
Section 10(22B) Income earned by a news or broadcasting agency
Section 10(23A) Income earned by certain Professional Institutes
Section 10(23AA) Income acquired through Regimental Fund
Section 10(23AAA) Income acquired through an employee welfare fund
Section 10(23MB) Insurance pension fund income
Section 10(23B) Income earned by village industry development institutions
Section 10(23BB) Income earned by state level Khadi and Village Industries Board
Section 10(23BBA) Income earned by regulatory bodies of institutions affiliated with religion and charity
Section 10(23BBB) Income received by the European Economic Community
Section 10(23BBC) Income received through SAARC funded regional projects
Section 10(23BBE) Income received by the IRDA
Section 10(23BBH) Income received through Prasar Bharti
Section 10(23C) Income received by any individual through certain specified funds
Section 10(23D) Income earned via Mutual Funds
Section 10(23DA)j Income earned via a Securitisation Trust
Section 10(23EA) Income earned through an IPF
Section 10(23EB) Income received by the Credit Guarantee Trust for Small Industries
Section 10(23ED) Income exemption of IPF
Section 10(23DFB) Income exemption of specified income received by Venture Capital Firms, Funds or Businesses
Section 10(24) Income earned by authorised trade unions
Section 10(25) Income earned via provident funds and superannuation funds
Section 10(25A) Income earned via Employee's State Insurance Fund
Section 10(26), 10(26A) Income earned by Schedule Tribe Members
Section 10(26AAN) Income earned by an individual of Sikkimese origin
Section 10(26AAB) Marketing regulation with regards to agricultural produce
Section 10(26B) Income earned by corporations established for the upliftment of backward tribes and classes
Section 10(26BB) Income earned by corporations established for the protection of Minority interests
Section 10(26BBB) Income earned by corporations established for former servicemen
Section 10(27) Income earned by cooperative societies established for protection of scheduled castes and tribes interests
Section 10(29A) Income received by Community Boards
Section 10(30) Income earned in the form of subsidies via the Tea Board
Section 10(31) Income earned in the form of subsidies via the concerned Board
Section 10(32) Income earned by a child in accordance with Section 64 of the Income Tax Act
Section 10(33) Income earned through Unit Trust of India capital asset transfer
Section 10(34) Income earned in the form of dividends through an Indian firm
Section 10(34A) Income earned by a shareholder through the buyback of unlisted companies
Section 10(35) Income received through the sale or transfer of Unit Trust of India units as well as other mutual funds
Section 10(35A) Income from a securitisation trust that is exempt
Section 10(36) Income received on the sale of shares under specific conditions
Section 10(37) Any capital gains made on the mandatory acquirement of land in relation to urban agriculture
Section 10(38) Any long term capital gains made from share and security transfers that fall under the purview of Security Transaction Tax
Section 10(39) Any income received from any international event or function relating to sports
Section 10(40) Any income acquired in the form of a grant from a company deemed to be a subsidiary of the parent company
Section 10(41) Any income received on any asset transfer of a company or project that conducts power distribution, generation and transmission
Section 10(42) Any income earned by any authority that has been established by more than one country
Section 10(43) Any income in relation to reversal of mortgage
Section 10(44) Income generated through the NPS Trust
Section 10(45) Any allowance or perks granted to the chairman or any member of the UPSC
Section 10(46) Any income that comes under the category of 'specified income' with regards to specific authoritative bodies
Section 10(47) Any income that is exempt under the category of infrastructure debt fund
Section 10(48) Any income earned by a foreign firm or company due to crude oil sales within India
Section 10(49) Any income earned by the NFHC (National Finance Holdings Company)
