List Of All Incomes Exempted From Income Tax List Of Exempted Incomes

List of All Incomes Exempted from Income Tax

All receipts, which give rise to income, are taxable under the income-tax Act unless it is specifically provided that it does not form part of total income. Such incomes which don not form part of total income may also be called incomes exempt from tax. As per section 10 to 13A, certain incomes are either totally exempt from tax or exempt up to a certain amount. Therefore, these incomes, to the extent these are exempt, are not included in the total income of an assessee for computation of his total income. Recommended Articles a) Water or electricity within or outside its own jurisdictional area, or b) Any other commodity or service within its own jurisdictional area. v. Any university or other educational institution existing solely by for educational purposes and not for purpose of profit; or vi. Any hospital or other institution for the reception and treatment of persons (i) suffering from illness or (ii) mental defectiveness or (iii) during convalescence or (iv) requiring medical attention or rehabilitation, existing solely for philanthropic purpose and not for payment of profit. The exemption under clause (v) and (vi) shall be available only to following type of universities/ hospitals/institutions (hereinafter called institutions). A. Institutions which are wholly or substantially financed by the Government, or B. Institutions whose aggregate annual receipts do not exceed ` 1crore, or C. Institutions, other than covered under (A) and (B) above, which may be approved by the prescribed authority i.e. Chief Commissioner or Director General of Income-tax Where approval is granted it shall be a permanent approval unless it is cancelled or withdrawn. vii. The provision also empowers the prescribed authority, on an application, to grant exemption from income tax by giving approval in respect of: a. Any other fund or institution established for charitable purposes, having regard to its objects and importance throughout India or throughout any one or more States [Section 10(23C)(iv)]; and b Any trust or institution, which is either or wholly for public religious purposes or wholly for public religious and charitable purposes, and which is administered and supervised in a manner so as to ensure that its income is Properly applied for its purposes. [Section 10(23C)(v)] a) Imported machinery never used in India will not be treated as second hand machinery b) Machinery upto 20% of total value can be second hand c) Audit report of CA compulsory Profit of business * ET (Expert Turnover/It (Turnover) e) Trust must get itself registered with the Commissioner of Income-tax f ) The charitable trust created on or after 1.4.1962 should satisfy the following further conditions: i. It should not be created for the benefit of any particular community or caste; ii. No part of the income of such charitable trust or institutions should enure directly or indirectly for the benefit of the settler or other specified persons; and iii. The property should be held wholly for charitable purposes. The following incomes of a religious or charitable trust or institution are not included in its total income, provided the above conditions are satisfied: g) Income from property held under trust wholly for charitable or religious purposes h) Income from property held under trust which is applied in part only for charitable or religious purposes i) Income from property held under trust which is applied for charitable purposes outside India j) Voluntary contribution forming part of corpus, corpus means income in the form of voluntary contribution with a specific directions Exemption Exemption allowed to the extent of income applied for charitable purpose in India plus 15% of the income so accumulated. Assessee can accumulate more than 15% by fi ling form 10 and depositing the money in a mode given under section 11(5). Period of accumulated maximum 5 years Corpus donations are fully exempt

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List of All Incomes Exempted from Income Tax#

List of All Incomes Exempted from Income Tax