Let us know today, which is the income that is not taxed? Meaning which things are exempted from tax by the income tax department? So let me tell you that there are many such things on which the tax department gives exemption for tax(Return), such as inherited property or gift given by someone, etc. In India, there is a provision that if a person earns 2.5 lakh or more during a financial year, then he has to pay tax according to this provision. The return has to be paid not only on the salary earned from the job but also on the income earned in other ways/sources. This included income from interest, a side business,
or any kind of investment. But despite this, there are some such provisions in the Income Tax Act in India, under which the common man in India does not have to pay any tax. Meaning that you can earn from any form and you do not have to pay any return for that Income.
For example, no matter how much the farmers earn from farming, they do not have to pay any tax for that Income. There is a return exemption in agriculture Income, and apart from this, if you are a partner of a firm and you get a share of its profits, then no matter how much it is, you do not have to pay any tax on it. In fact, the firm has already paid a return for its earnings. That’s why you do not have to pay any tax from the profit you get in the partnership firm.
If we go through Section 56 (2) clause (1) of the Income-tax Act, you will get information about you do not have to pay tax on many types of gifts. If you have received a gift of 50,000/- Rs, or less than 50,000/- Rs, then you do not have to pay any tax on it. The only condition in this is that this gift should be received on your wedding day or any nearby day. In this, any property inherited from a relative will also be exempted from return. Apart from this, a scholarship received from any Panchayat, Municipality, Municipal Community, District board, Containment board, Foundation, University, Educational institution, Medical institution or any other institution also comes under the provision of return exemption.
Gift received by a registered trust or charitable trust U/s 12 (a) or U/s 12 (aa) of the Income Tax department Act, also comes under the provision of tax exemption. If an employee has worked in an organization for 5 years or more, then the amount of graduation received by him during his retirement also comes under the provision of sex exemption.
However, during retirement, a government employee gets a return exemption only on the amount of gravity up to 20 lakhs. And private-sector employees would get tax exemption only on gravity up to Rs 10,0000. Apart from this, the money is withdrawn by the Employees Provident Fund PF also comes under return exemption. However, this small job is available only after working for more than 5 years. You should also know that investing in Public-Private Funds also comes under the purview of return exemption. And there is no return on the interest earned on PPF. If any person has got saver or any amount in family inheritance. No return would have to be paid on how it was received.
There is no return on inherited stock also. However, such transactions can be questioned by the Income Tax Department. This thing should be kept in mind. And you must know that investing in a policy in insurance also comes under the purview of return evasion, but the gratuity amount received from that policy also comes under the purview of return exemption.