Incomes that do not fall in taxable income category

Incomes that do not fall in taxable income categoryIf your salary for the month of March shrunk for reasons unknown to us (taxation), this piece of information will be useful to you in endless ways.

Let us access some income types that do not fall in the category of taxable income.

From in.finance.yahoo.com:

Agricultural Income: Any income which you receive as income from any agricultural activity is deemed as not included in total income. If your father is into agriculture and he gives you a part of the income as a gift, then you don’t need to pay tax on it, provided, your father files his tax returns.

Income for being partner in a firm: If you receive any income for being a partner of a firm which has already been assessed separately then the income need not be included in total income. Thus any share in the profits that you have in a firm according to the partnership deed is not taxable.

Rs 5000: An amount of Upto Rs. 5000 which you receive for any reason other than as prize money and are not a recurring amount can be excluded from your total income. It seems to be a very small amount but sometimes this could be the difference between being in a higher slab or a lower slab.

Travel concession/assistance: Any monies that you receive from your company for the purpose of travel to any place in India along with your family for the purpose of leave. The claim can be made two times in a bucket of 4 years. Family includes Wife and children and also parents, brothers or sisters if they are dependent on you. The only check being that you have to maintain original bills to prove travel if the IT department asks for it.

In addition to all these tax-free incomes, superannuation, provident fund, life insurance policy (including bonus payment), leave salary, retrenchment, and income from Government securities.

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