Page 212 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Unit 11: Taxation Planning

All receipts which give rise to income are taxable unless they are specifically exempted from tax Notes
under the Act. Such exempted incomes are enumerated in section 10 of the Act. The same are
summarised in the Table.

Table 11.3: Income Exempt from Tax
Section Nature of Income Exemption limit, if any
1 2 3
10(1) Agricultural income
10(2) Share from income of HUF
10(2A) Share of profit from firm
10(3) Casual and non-recurring Winnings from races ` 2500/-
receipts other receipts ` 5000/-
10(10D) Receipts from life Insurance
Policy
10(16) Scholarships to meet cost of
education
10(17) Allowances of MP and MLA. For MLA not exceeding ` 600/-
per month
10(17A) Awards and rewards
(i) from awards by
Central/State Government
(ii) from approved awards by
others
(iii) Approved rewards from
Central & State Governments
10(26) Income of Members of Only on income arising in those
scheduled tribes residing in areas or interest on securities or
certain areas in North Eastern dividends
States or in the Ladakh region.
10(26A) Income of resident of Ladakh On income arising in Ladakh or
outside India
10(30) (i) Subsidy from Tea Board
under approved scheme of
replantation
10(31) (ii) Subsidy from concerned
Board under approved
Scheme of replantation
10(32) Minor's income clubbed with Upto ` 1,500/-
individual
10(33) Dividend from Indian
Companies, Income from units
of Unit Trust of India and
Mutual Funds, and income
from Venture Capital
Company/fund.
10(A) Profit of newly established
undertaking in free trade
zones electronic hardware
technology park on software
technology park for 10 years
(net beyond 10 year from
2000-01)
10(B) Profit of 100% export oriented
undertakings manufacturing
articles or things or computer
software for 10 years (not
beyond 10 years from 2000-01)
Contd...

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