Non taxable income
1) Agricultural income [sec.10 (1)] : agricultural income is exempt if agricultural land is situated in India, provided section 2(1A) is satisfied.
2) Sums received from HUF [sec.10(2)]: any sum received by an individual as a member or a HUF out of income of the family is exempt from tax.(such income has been taxed in hand of HUF)
3) Share of profit from partnership firm[sec.10(2A)]:sums received from a firm by an individual being a partner in such firm is exempt from tax.( such income has been taxed on book profit of firm)
4) Interest income of non-residents [sec.10(4)]:
i) Any income from specified securities or bonds in official gazette by the central government. (Including premium on redemption of such bonds.)
ii) Any income by received by an individual by way of interest on the money standing to the credit of his Non-resident (External) Account in any bank in India in accordance with the FERA,1973 and rules made there under.
5) Interest income of non residents from specified savings certificates [sec.10 (4B)]:any interest income received from notified savings certificates issued before 1stjune 2002 by central government is exempt provided he subscribes to such securities in foreign currency or other foreign exchange remitted from a country outside India in accordance to the provisions of FEMA,1999 and any rules made there under.(exemption is available only to the original subscribers to the savings certificates)
6) Allowances payable outside India [sec.10 (7)]: Allowances paid by the central government to an Indian citizen outside India for rendering services abroad.
7) Non taxable portion of;
i) Death cum retirement gratuity[sec.10(10)
ii) Commutation of pension[sec.10(10A)]
iii) Encashment of earned leave / leave salary[sec.10(10AA)]
iv) Compensation on voluntary retirement[sec.10(10C)]
v) Payment from statutory provident fund[sec.10(11)]
vi) Payment from recognized provident fund[sec.10(12)]
vii) House rent allowance[sec.10(13A)]
8) Educational scholarship [sec.10 (16)]: scholarship granted to meet cost of education whether by government or any other organization.
9) Family pension of a member of armed forces[sec.10(19)]