INCOME EXEMPT FROM TAX

MRAGNA GUPTA
Incomes Exempt Under Section 10

 The following incomes are absolutely exempt

from tax under section 10 as they do not form
part of total income
Agricultural Income (Sec. 10(1))

Agricultural Income (Sec. 10(1))

 Agricultural income is exempt from tax if it
comes within the definition of agriculture
income as given in sec. 2(1A).
Receipts by a member from a Hindu undivided
family (Sec. 10(2))
Receipts by a member from a Hindu
undivided family (Sec. 10(2))

 Any sum received by an individual, as a

member of HUF. either out of income of the
family or out of income of estate belonging to
the family is exempt from tax.
 The tax exemption is based upon the
principal of avoidance of double taxation.
 Income of HUF is taxable.
Share of profit from partnership
firm(Sec.10(2A))

 Share of profit received by partners from a

firm is not taxable in the hands of partners.
Interest to non-resident(Sec.10(4),(4B))

The following interest incomes are exempt from

tax.
 In the case of non resident interest on bonds
or securities notified by a central govt.
 Incase of a person resident outside India
income from interest on money standing to
credit in a non resident account in India