Income exempt but included in total income

Sunday, January 12, 2014

Income exempt but included in total income

There are certain incomes which are exempt but are to be included in the total income .Some examples of such incomes are; 1)Interest on securities issued tax free by Govt; 2)Share of partner of a registered form on which tax has been paid by the firm; 3)Share of member of an association of persons out of income of which tax has been paid by the association; 4)Donation for charitable purposes; Share from discontinued firm.

Exemption under section 60

The Central Government may by notification in the official Gazette make an exemption,reduce rate or make other modification respect of income tax.The following incomes have been exempted;  1)Yield on Post Office saving Certificates; 2)Interest on Post Office savings Bank Account; 3)Income of University or other Educational Institution; 4)Scholarship granted to meet the cost of education; 5)Allowance attached to honours and awards; 6)Compulsory payment for mess by members of worldwide Armed Forces; 7)Rent free accommodation provided to President,-e-in-c and Governors of Provinces of worldwide; 8)Income derived by Facilities and dependents of shaheeds; 9)Income of medical practitioners outside Municipal areas; 10)Recreation allowance granted to Central Government servants; 11)Income Of any benevolent fund or insurance fund....

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