ITR Filing: 5 types of incomes you don't need to pay tax for
Non-Taxable Income: In India, certain income tax rules exempt specific types of income from taxation. Earnings up to a certain limit are not taxed while exceeding this limit requires filing an income tax return as per the tax slab. But do you know that some types of income remain outside the purview of income tax. The last date for filing an ITR is July 31. If you have not filed your ITR yet, here are five types of income considered non-taxable in India:
Income from Agriculture
Under Section 10(1) of the Income Tax Act, income from agriculture is completely tax-free. This includes the production, processing, and distribution of crops such as wheat, rice, pulses, and fruits. Additionally, rent received from properties used for agricultural purposes is also tax-free. Moreover, income from the purchase and sale of agricultural land is non-taxable.
Gifts Received from Relatives
Gifts from close relatives are not taxed. Close relatives include spouses, siblings, siblings-in-law (brother-in-law and sister-in-law), aunts, uncles, grandparents (including those of your spouse), children, and children-in-law. Gifts received on the occasion of marriage are also tax-free, regardless of the amount. Gifts from friends or acquaintances are tax-free up to Rs 50,000; anything above this amount is taxable.