Life Insurance - Kotak Life Insurance Company in India
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Tax-Free Income in India
  • 17th Jan 2020 |
  • 2,275

As a salaried or self-employed individual, you must be paying taxes every year by filing your Income Tax Returns (ITR). But were you aware of certain earnings that act as tax-free income in India? There exist some sources of income for which you do not have to pay taxes. Let’s run through the tax-free income sources list that you need to know about:

Listof Tax Free Income Sources:

1. Income Earned from Agriculture

Under Section 10(1), income earned from an agricultural source is fully exempt and remains as a tax-free income in India. But if you are earning from agriculture then you need to regularly file your income tax returns.

2. Interest Earned from Savings Account

You can claim a maximum deduction of INR 10,000 for the interest earned from a savings account under Section 80TTA. While youfile your ITR, you have to show the interest earned as your income from other sources for income tax exemption. This only applies to interest from a savings account and not a fixed deposit.

3. Profit Gained from a Partnership Firm

Under Section 10(2), the profit earned if you are a partner of any partnership firm is exempt from taxes. And if you receive any funds from LLP (Limited Liability Partnership) which is your share of the profit, that amount is non-taxable. But other thanthis, any other funds remain taxable.

4. Scholarships and Grants

If you have received any scholarship or grant to minimize the cost of education, it is exempted from taxes under Section 10(16). There is no limit to the maximum amount that can be received as a scholarship or award to be claimed as tax-free income.

5. Money Received from Gratuity

Gratuity is paid to you by your employer as gratitude for your service for the company. The total gratuity amount received by a government employee is completely exempted from taxes. For a non-government employee, the least amount of the three give-below is exempted from tax:

  • Total gratuity amount
  • Fifteen days of salary for each year of service based on the last drawn amount
  • INR 10 lakhs

The tax-free benefit holds good only if the gratuity is received on your retirement, termination, or on becoming incapacitated.

6. Money Received After Opting for Voluntary Retirement

An amount of INR 5 lakhs received on taking voluntary retirement is exempt from tax only if the voluntary retirement scheme follows Rule 2BA of the Income Tax Rule.

7. Receipts from Hindu Undivided Family (HUF)

If you get any money or inherit it as a member of HUF, the money is exempt from tax. The money received includes family income, impartible land or income from the family estate which can be claimed under Section 10(2).

8. Foreign Service Allowance

If you receive any perquisites or allowances outside India for rendering any foreign services, it remains tax-free under Section 10(7).

Read Here for More Related Articles:

Download Brochure

Features

  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999

T&C

Browse our library of resources

Download Brochure

Features

  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Tax-Savings Investments and Options in India

Difference Between Gross Income & Total Income in Calculating Income Tax

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

E-Filing of Income Tax Returns in India

धारा 80डी आयकर अधिनियम, 1961

Problems People Face with Tax Returns after a Job Change

What is TDS Slab?

Income Tax Exemption for Disabled

How to Get Form 16?

How To Save Tax Better with 80C

5 Unusual Investments You Didn't Know for Saving Taxes in India

Union Budget Highlights – 1st February 2022

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2020-21 & 2021-22

How to Check Income Tax Refund Status Online in India

How to File Income Tax Return - Everything You Need To Know

Tax Saving Tips: Best Ways to Save Income Tax for 2021

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

Tax Benefits of ULIP Plans Available for NRIs

Financial Planning and Best investment options for Housewives

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

Interest Imposed Under Section 234A, 234B and 234C

Budget 2019: Impact on the Common Man in India

What is Form 16A?

What is ITR 5 Form and How to File ITR 5?

How to File Income Tax Return without Form 16

How to Check Income Tax Returns Status Onine?

Income Tax Filing Using Multiple Form 16

Role of Life Insurance in Your Financial Portfolio

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

What is Tax Evasion and What Are The Penalties For Tax Evasion In India?

Tax Structure in India

Home Investment Plan to Buy Dream Home

What is Form 16B?

TDS Due Dates of FY 2020-21 For Return Filing

All about TDS on Salary under Section 192 – Kotak Life

How to e-Verify your Income Tax Return

Why is Form 16 Important?

How to Pay Advance Tax Online in India

What is the TDS Rate on Salary?

How Much Money This Budget 2019 Can Help You Save

Tax Benefit of Investing in Term Plan

What is Section 10D of the Income Tax Act?

Income Tax Deductions Under Section 80C

What is TDS Refund Process?

Sub-sections Under Section 80C of the Income Tax Act, 1961

What To Do If Your TDS Is Not Deposited With The Government?

Income Tax Filing For NRI in India

How to Save Income Tax with Insurance

How to Claim TDS Refund for Excess TDS Deduction?

What is the Percentage of Tax Deducted at Source (TDS)?

Tax Saving Options for Salaried Employees

ITR-6: Guide to filing ITR-6 Form online

Pradhan Mantri Suraksha Bima Yojana

When Should TDS be Deducted and Who is Liable to Deduct it?

What Is Advance Tax and How Is It Calculated?

Income Tax Deductions for Disabled Person Under Section 80U

Tax Deductions You MUST Know

Tax Season Is Coming- Know How to Save Tax

Impact of GST on Life Insurance in India

Financial Benefits and Government Schemes Every Woman in India Should Know

Penalty For Late Filing TDS Return

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

Income Tax Exemption for Physically Handicapped Dependent

Insurance and Endowment: Everything You Need to Know!

Can You Get Term Insurance Without Income Proof?

Tax Saving Guide for 2019-20

Investing Lump Sum Amount

Tax Benefits for Startups in India

Types of Riders in Insurance Policy

Tax Saving for Self Employed in India

What is Tax Deduction at Source (TDS)?

List of Important Income Tax FAQs

Why Tax Planning Should Be an All-year Round Activity

How do I Calculate My Term Insurance Premium

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

How to File TDS Return?

How to save tax for salaried person?

How to Download Form 16?

A Complete Guide for Filing ITR 3 Form

Section 80E: Tax Exemption on Interest on Education Loan

How to File Income Tax Return for First Time Tax Payers

Form 16, Form 16A, and Form 16B?

Section 16 of the Income Tax Act (ITA), 1961

Do Beneficiaries Pay Taxes on Life Insurance?

What is ITR & How to File Income Tax Return

All You Need to Know About Section 80C

Are Financial Planning and Tax Planning the Same Thing?

What is TDS Exemption Limit?

What Investment Options Come with Tax Incentives?

Presumptive Taxation for Business and Profession

Section 80C Deductions as per Income Tax Act, 1961

What is Section 80C Deduction Limit?

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

Income Tax Deduction Under Section 80CCC In India

What is the Difference Direct Tax and Indirect Tax

What is Section 80C Deduction?

Why January Is an Important Month for Saving Tax?

धारा 80सी आयकर अधिनियम, 1961

How to File ITR Online

Saving Income tax in 2017 - 18

How to e file ITR on Income Tax Government Portal

9 Income Tax Myths That Could Cost You Money while Filing returns

How to View 26AS and Download Form 26AS Online

What is Section 80C - Explained in Detail

Types of Income Tax Return (ITR) Forms

How to Check Income Tax Refund Status Online in India

How to Save Tax on Salary Arrears?

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

Have You Considered Term Insurance a Part of Your Tax Planning?

How can I get Form 16B from traces?

Tax Planning and Tax Benefits of Life Insurance

What are the Different Types of Taxes in India?

Things to Do After Filing Income Tax Returns

7 Important Things to Remember While Investing in a Savings Investment Plan

How to File Form 10E for Tax Relief on Salary Arrears?

ITR 2 Form – Complete Guide

Income Tax Benefits for Doctors

Top 8 Tax-Saving Methods in India- Budget Planning

All about TDS Payment Online & Due Dates

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

What is Salary Protection Insurance and Why You Need It

Tax Exemption and Scope of Coverage

What is the Difference between Form 16 and Form 16A?

How to File Form 16 for Salaried Employees?

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

Section 44AD of Income Tax Act for AY 2020-21

What is Challan 280? How to Pay your Income Tax Online with Challan 280?

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

Tax Saving Options other than Section 80C

Understanding Tax Exemptions in ULIP (Old and New)

Difference between Section 80C, 80CCC, 80CCD & 80D

Guide for Tax Calculation on your Salary

What is Section 80CCC of the Income Tax Act 1961

Tips to plan your savings in 2019

All about Online Income Tax Calculator

आयकर स्लैब 2021-2022

What are Direct Taxes? How to Avoid being Overtaxed?

How to View 26AS and Download Form 26AS Online?

How To Save Tax Using Life Insurance?

How to file Form 16 online?

9 Point Guide on how to File Income Tax Return Online

A Comprehensive Guide to Understand the ITR 7 Form

ITR 1: Sahaj Form

Section 80G of the Income Tax Act

5 Popular Tax-Saving Schemes in India

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

What is Form 26AS - All You Need To Know

Guaranteed Return Plans-Why is it a must for you?

Save Income Tax by 31st March: Here Is a Checklist