Income Tax Exemptions: 6 Types of Income That Are Not Taxed
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Agricultural Income
Agricultural income in India is tax-free under Section 10(1) of the Income Tax Act.
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Gifts
Gifts, per Section 56, including those from relatives, marriage, wills, inheritance, local authorities, trusts, educational or medical institutions, are tax-free.
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Scholarships and Rewards
Scholarships provided by institutes for education purposes are tax-exempt in India.
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Allowances Paid by the Indian Government
Allowances paid by the Indian government to its employees working outside India are tax-free.
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Pension Received by Employees
Government employee pensions are fully exempt from income tax.
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Life Insurance Policies
The money that is received by an individual following the maturity of a life insurance policy is exempt from income tax.