Filing IT returns? Here’s what’s exempted beyond PF and pension

Paying income tax is a civil duty of all citizens earning more than Rs 2.5 lakh per year. But calculating income tax properly while filing returns without including the exempted sources of earning is one’s duty towards himself. While most of us are aware of some common source like Employees Provident Fund (EPF), Provident Fund (PF), National Pension System (NPS), Public Provident Fund (PPF), etc. are IT tax exempted, there are some more income sources that are exempted from being reported as earnings.

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Here’s a list of income sources that you need not consider when filing ITR.

Share of profit in partnership firm

According to the Income Tax Act, a person’s earnings from the profit share in a partnership firm are exempted from any sort of tax as the company or the firm registered has already paid income tax on it.

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Ancestral property

A person who has inherited his ancestral property whether it’s of residential or commercial nature is exempted from tax. Other inherited assets like jewellery, cash, or bank balance. The beneficiary is not liable to pay tax for it.

Marriage gifts

According to Jitendra Solanki, a SEBI registered expert, a taxpayer’s income from the gifts he received from marriage is 100% tax exempted. The only condition is that the gift is received on or around the wedding date and it can be established as one.

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Educational scholarships

Educational scholarships received either in India or abroad are completely exempted from tax, said Balwant Singh.

Gratuity

Any income under Rs 20 lakh earned from gratuity is income tax exempted. Any amount of profit above the cap limit will be calculated at the defined rate.

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Agriculture

An individual’s income from agriculture is also exempted from any kind of tax.