NTA UGC NET 2019 Commerce full free notes for income tax and corporate planning

Unit 10 - Income tax and corporate tax planning

List of Exempted incomes

• Agricultural income [section 10(1)]

• Amount received by a HUF member.

• Share of profit of a partner from a firm [sec 10(2A)]

• Leave travel concession of an employee subject to certain conditions [sec 10(5)]

• Allowances and Perqisitues of government employees posted outside India [sec 10(7)]

• Remuneration to persons who are not citizens of India (remuneration received by diplomats, foreign national, non-resident employed on a foreign ship and employee of foreign government during his training in India).

• Death-cum retirement gratuity subject to certain conditions [sec 10(10)]

• Payment of commutation pension subject to certain limits [sec 10(10A)]

• Leave encashment subject to certain limits [sec 10(10AA)]

• Compensation on retrenchment up to Rs 5,00,000.

• Payments received under Bhopal gas leak disaster act, 1985.

• Compensation received or receivable for any disaster.

• Amount received on voluntary retirement upto Rs 5,00,000 [sec 10(10C)]

• Tax on non-monetary perquisites paid by employer.

• Provident fund [sec 10(11)].

• Amount received under a life insurance policy.

• Payments from recognised provident fund [sec 10(12)]

• Amount received at the time of closure of National Pension Scheme upto 40% and wholly exempted, if it is received by the nominee.

• Partial withdrawal (25%) of amount from NPS.

• House Rent Allowance (HRA) subject to certain limits [sec 10(13A)].

• Amount received from approved superannuation fund.

• Notified special allowances upto certain limits.

• Interest, bonus or premium on notified investments.

• Amount received from Sukanya Samridhi account.

• Family pension received by the family members of armed forces killed.

• Education scholarshipsscholarships, i.e, scholarships granted to meet the cost of education.

• Allowances of MPs and MLAs.

• Award or reward given by the government.

• Pension received by certain awardees or their family members.

• Annual value of one palace of ex-ruler.

• Income of specified news agency.

• Income of a local authority.

• Income of an approved scientific research association.

• Income of Prasar Bharti (Broadcasting Corporation of India).

• Income of professional institution or association.

• Income of notified mutual funds.

• Income of a Sikkimese.

• Income of trade union.

• Income of ST members living in certain areas.

• Income of special funds of national importance (PM National relief fund, CM relief fund, etc).

• Income of a securitisation trust.

• Income of a minor child clubbed with the income of parents upto Rs 1,500 for each minor child.

• Income of investor protection fund of depositories.

• Dividend of shareholders other than any income by way of dividend chargeable to tax under section 115BBDA.

• Income of a shareholder on account of buy back of shares. (Unlisted)

• Certain income of international sports event held in India.

• Income from units of unit holders.

• Income of an investor from a securitisation trust.

• Capital gain on compulsory acquisition of agricultural land situated in certain urban areas.

• Income of an infrastructure debt fund.

• Income of a foreign company for storage and sale (resident) of crude oil in India.

• Amount received as loan under reverse mortgage by an individual.

• Certain allowances and perquisites of present or retired Chairman and members of UPSC.

• Specified income received by certain foreign companies.

• Income received from New pension system trust.

• Specified income of notified board or trust or commission or body or authority.

• Income of electoral trust.

• Income from property used for religious or charitable purposes.

• Income of National Financial Holdings Company Limited set up by the Central Government.

• Income from voluntary contributions of trusts or institutions.

• Income from political parties. (Rs 2,000 if it is received in cash).

• Exemption to newly established units in special economic zones.