EXEMPTED INCOME U/S 10

• Section 10(11) Payment from Statutory Provident Fund

Employer’s contribution to such a fund is not treated as income of the
employee also interest credited to such a fund is exempt in the hands of the
employee. At the time of termination of service, Lump sum amount received
from such fund is exempt in the hands of employees

• Section 10(12) Payment from Recognized Provident Fund

Employer’s contribution to such fund, up to 12% of salary is not treated as
income of the employee also Interest credited to such fund up to 9.5% per
annum is exempt in the hands of the employee, interest in excess of 9.5% is
charged to tax in the hands of the employee. If certain conditions are
satisfied, then lump sum amount received from such fund, at the time of
termination of service, is exempt in the hands of employees.

• Section 10(11A) Payment from Sukanya Samriddhi Account.

Any payment from an account opened in accordance with the Sukanya
Samriddhi Account is exempt from tax. In other words, interest and
withdrawals from such an account will be exempt from tax.

• Section10(12A)
40% of the total amount payable at the time of account closing or opting out
of the NPS scheme is exempt from tax. With effect from April 01, 2020, 60 %
of the amount payable shall be exempt from tax

Section 10 (13A) of the Income Tax Act

. Section 10(13A) provides an exemption for House Rent Allowance (HRA) received
by an individual who is a salaried employee. This exemption is provided to alleviate
the tax burden on rent paid by salaried individuals who live in rented
accommodations.
The exemption is available if the employee receives HRA as part of their salary and
pays rent for a residential accommodation. The exemption is limited to the minimum
of the following amounts:

1. The actual amount of HRA received by the employee from their employer
2. The actual rent paid by the employee minus 10% of their salary
3. 50% of the employee's salary if they live in a metro city, or 40% of their
salary if they live in a non-metro city.

The term "salary" for this purpose includes basic salary, dearness allowance, and
any other commissions or bonuses received by the employee.

• Section 10(23B)
Any income earned by a charitable organization made to develop village and
khadi industries is exempt.

• Section 10(23AAB)
Any income of a fund set-up by the Life Insurance Corporation of India or any
other insurer to which contribution is made by any person for receiving
pension from such fund, and fund approved by the Controller of Insurance or
the Insurance Regulatory and Development Authority, is exempt from tax.

• Section 10(23D)
Any income from the mutual fund registered under SEBI or set up by a public
sector bank is exempt from income tax.

• Section 10(25)
Interest and capital gains on securities held by a statutory provident fund,
income received by the trustee on behalf of a recognized provident fund, and
income of the board of trustees on behalf of a deposit-linked insurance fund
is exempt from tax.