5/6/2014 Exempt Incomes and Allowances

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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 amember 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 estatebelonging 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 ofthe 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 inaccordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and the rules madethereunder, 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 Indiato maintain the aforesaid Account. {Section 10(4)(ii)]

5. The sum received (including the bonus) under a life insurance policy (other than any sum receivedunder 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 employerfor himself and his family, in connection with his proceeding on leave to any place in India or from hisemployer or former employer for himself and his family, in connection with his proceeding to any placein India after retirement from service or after the termination of his service, subject to such conditionsas may be prescribed (including conditions as to number of journeys and the amount which shall beexempt per head) having regard to the travel concession or assistance granted to the employees ofthe Central Government. The amount exempt under this clause shall in no case exceed the amount of expenses actuallyincurred 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 ofIndia for rendering service outside India. {Section 10(7)]

8. View Exemptions available on Retirement benefits.

9. 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 theperformance of the duties of an office or employment , to the extent to which such expenses areactually incurred for that purpose. {Section 10(13A)]

10. 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 anddeposits 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)]

11. Scholarships granted to meet the cost of education.{Section 10(16)]

12. Any income to the extent such income does not exceed one thousand five hundred rupees in respectof each minor child whose income is so includible. {Section 10(32)]

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5/6/2014 Exempt Incomes and Allowances

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13. Any income arising from the transfer of a capital asset, being a unit of the Unit Scheme, 1964. {Section

10(33)]

14. Any income by way of dividends referred to in section 115-O. {Section 10(34)]

15. Any income by way of

a. income received in respect of the units of a Mutual Fund specified under clause (23D); or

b. income received in respect of units from the Administrator of the specified undertaking; or

c. 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)]

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

17. Any income chargeable under the head Capital gains to an individual or a Hindu undivided familyarising from the transfer of agricultural land , where

i. such land is situate in any area referred to in item (a) or item (b) of sub-clause (iii) of clause (14)of section 2;

ii. such land, during the period of two years immediately preceding the date of transfer, was beingused for agricultural purposes by such Hindu undivided family or individual or a parent of his;

iii. such transfer is by way of compulsory acquisition under any law, or a transfer the considerationfor which is determined or approved by the Central Government or the Reserve Bank of India;

iv. such income has arisen from the compensation or consideration for such transfer received bysuch assessee on or after the 1st day of April, 2004. {Section 10(37)]

18. Any income arising from the transfer of a long-term capital asset, being an equity share in a companyor a unit of an equity oriented fund where such transaction is chargeable to securities transaction tax.{Section 10(38)]

Saving Bank Interest (Section 80 TTA) :

From Assessment year 2013-14, the interest earned on Savings Bank accounts upto a limit of Rs. 10,000/-is exempt from inclusion in Gross Total Income for the purpose of Income Tax.

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