AGRICULTURE

& OTHER
EXEMPTED INCOMES
Agricultural Income
Share in HUF & Partnership
Exemption to Non-residents
Other exemptions
EXEMPTED INCOMES IN INDIA

Agricultural income in India Payment received from Statutory PF

Share in profit of a Partnership Maturity Payment on Life Insurance

Share in profit of a HUF Dividend from Domestic/Indian company

Payment received from PPF Leave Travel Concession

Payment received from RPF Other exemptions

 Agricultural income 10(1)
Such income must satisfy the three conditions:
Rent or Revenue should be derived from Land.
The Land must be used for Agricultural purposes.
The Land must be used for Agricultural purposes.
 Then, it is Exempt from the Tax but it is included in the
total income to determine the rate of Tax at which the
total without Agriculture Income would be liable to tax.
PARTLY AGRICULTURE INCOME
(RULE NO.7)
 If Agriculture produce,produced by the
assessee is used in the non-agriculture
finished product which is also produced by
the assessee,then market value of the
agricultural produce must be debited in P&L
a/c.

And agriculture income= Market value of

agricultural product-cost of agricultural
product.
RECEIPT FROM HUF U/S 10(2)
 Any sum received by  The logic behind this is
an Individual as a that HUF is already
member of HUF out of taxed on this income
estate of income of the and hence no tax
family is exempt from should be levied on
tax and not included in distribution of the
the total income of the income of HUF.
Individual.
PARTNER’S SHARE IN PROFIT
OF FIRM U/S 10(2A)
 Incase of a person who is a partner of
a firm which is separately assessed in
that case the amount of share in the
profits of firm ascertain as per the
partnership deed is exempted from
tax.
LEAVE TRAVEL CONCESSION U/S 10(5)
 The Value of leave travel concession received or due
to an individual is exempted to the extent it is actually
spent.
 Thus, the exemption is available to any individual in
respect of the value of any travel concession or
assistance received by or due to him,
• From his employer for himself and his family, in
connection with his proceeding on leave to any place
in India.
• From his employer or former employer for him self
and his family, in connection with his proceeding to
any place in India after retirement service or After the
termination of service.
INTEREST TO NON-RESIDENTS U/S
10(4)
 Interest on bonds issued by Government.
 Interest on FCNR deposits.

 Interest on NRE deposits.

 Interest on specified savings certificates

received by non-resident Indian citizens u/s
10(4B).
REMUNERATION RECEIVED BY FOREIGN
DIPLOMAT [U/S 10(6)(II)]
 The exemption from tax is available in the case off
an individual who is not a citizen off India in respect
off the remuneration received by him as an official
by whatever name called,off an embassy,, high
commission,, legation,, commission, consulate or
the trade representations off a foreign state,, or as
a member off the staff off any off these officials,, for
service in such capacity.
 The exemption is given only to those officials of
foreign country in which corresponding Indian
officials enjoy a similar exemption.
SALARY O F NO N-RESIDENT
EMPLOYEE OF A FOREIGN SHIP [U/S
10(6)
 The Sub-clause (viii) off section 10((6)) gives the
exemption from tax in case off an individual who iis
not a citizen of India and non- resident,in respect of
income chargeable under the head Salaries
received by him for service rendered in connection
with his employment on a foreign ship. However,his
total stay in India should not exceed in aggregate a
period of ninety days in the previous years.
FOREIGN ALLOWANCES AND
PERQUISITES TO GOVERNMENT
EMPLOYEES OUT SIDE INDIA [U/ S
10(7)]
 Sub-section (7) of section 10 states
that any allowance or perquisites paid
or allowed as such out side India by
the Government to a citizen of India for
rendering services outside India will be
totally exempted from tax.
LIC/PF EXEMPTIONS
 Amount received in life insurance policy [U/ S
10(10)]
 Any sum received under a life insurance policy,
including the sum allocated by way of bonus on
such policy shall be totally exempt from tax.
 Payment from provident fund[U/S 10(11)]

 Any payment from a provident fund to which the

provident funds Act, 1925, applies or from any other
provident fund set up by the central Government
and notified in the official gazette (i.e. public
provident fund)is totally exempted from tax.
RPF/ HRA
 Accum ulated balance from a recognized provident
fund [u/s 10(12)]
 The accumulated balance due and becoming
payable to an employee participating a recognized
provident fund, to the extent provided in rule of part
A of schedule, is exempted from tax.
 Payment from an approved superannuating fund
[U/S 10(13)]]
 House rent allowance [U/S 10(1 3A)]
OTHER EXEMPTIONS
 Income of a consultant under a technical assistant
grant Agreement between the international
organization and the Government of foreign state
[U/S 10(8A)]
 Income of an Individual who is assigned to duties in
India in connection with any technical assistance
agreement entered and project in accordance with
an agreement entered into by the central
Government and the Agency[U/ S10(8B)].
 Payment under the Bhopal Gas Leak Disaster
(processing of claims) Act, 1985 [U/S 10(10BB)].
COMPENSATION ON RETIREMENT OF AN
EMPLOYEE [U/S 10(10C)]
 At the time of his voluntary retirement or termination
of his service in accordance with any scheme of
voluntary retirement or in case of public sector
company referred to in point (a) above, a scheme of
voluntary separation, shall be exempted to the
extent such amount does not exceeds five rupees,
shall be exempted to the extent such amount does
not exceeds five lakh rupees.
SCHOLARSHIP/ MP
ALLOWANCE
 Scholarship [U/S 10(16)]
 Scholarship granted to meet the cost of
education is totally exempt from tax and will
not be included in the computation of
income.
 Allowances received by the member of
parliament or state legislature [U/S 10(17)]
PENSION RECEIVED BY A PERSON HONORED
BY A GALLANTRY AWARD [U/S 10(18)]
 This clause provides exemption for any income by
way of :-
 Pension received by an individual who has been in
service of central or state Gov. and has been
awarded,”Parama Vir Chakra)”,MahaVir Chakra” or
Vir Chakra.
 Family pension received by any member of the
family in case of death of the awardee.
SUBMITTED TO:-
MORADABAD BRANCH OF
CIRC

BY:-

DHRUV AGARWAL