It is necessary to file an Income Tax Return for an individual earning more than Rs 2.50 lakh in a financial year. However, while filing Income Tax Return (ITR), taxpayers are advised to use Income Tax Calculator properly, as Provident Fund (PF), Employees Provident Fund (EPF), Public Provident Fund (PPF) and National Apart from the pension system (NPS), there are other sources of income, where one can take advantage of tax exemption.
According to the Income Tax Act, income from marriage gifts, profit from partnership firm, education scholarship, gratuity and ancestral property is exempt from income tax. That is, no tax will have to be paid on it. But the condition is that these gifts should not exceed Rs 50,000.
Gifts are taxed under the Income Tax Act 1961. If the income from marriage gifts, profit from partnership firm, education scholarship and ancestral property exceeds Rs 50,000 in a financial year, then it will be taxable.
>> Marriage Gift
Income from marriage gifts is eligible for 100% income tax exemption, provided the gifts should be received on or near the date of marriage. In case of general gift, a taxpayer is allowed to receive a maximum of Rs 50,000 in a financial year.
>> Profit from Partnership Firm
Profits from partnership firm are completely exempted from any kind of tax, as the company has already paid income tax on it.
>> Education Scholarship
Education scholarship received in India or abroad is 100% tax exempt. That is, no tax would have to be paid on it.
>> Ancestral property
Money inherited by will or inheritance is exempt from the purview of jewelry and property tax. Whether it is received in the form of ancestral property or in a will from someone else. In ancestral property, the Income Tax Act covers only money, jewelry and immovable property inherited from father, grandfather and great-grandfather.
Earnings up to Rs 20 lakh from gratuity are tax free. You will not have to pay any tax on receipt of this amount.
read this also-
read this also-
The postappeared first on .