Anand S.

Tawde
MMM-III- 53
Assignment on Taxation

Income Exempted under section 10 of Income Tax Act :

10(2): Payments received by HUF Member from family income.

Income of HUF is taxable. To avoid double taxation, payments to members exempted.

10(2A): Share of profit of firm is exempted because profit made by firm is taxable.
Again to avoid double taxation.

10(4): Interest received by non resident from prescribed securities.

10(5): Leave travel concession provided by employers. This is exempted as this

income is to be expended by receiver.

10(6): Remuneration received by foreign diplomats of all categories.

Salary received by foreign citizen as employee of foreign company provided his stay
in India does not exceed 90 days.
Salary received by non-resident foreign resident as a member of ships crew provided
his stay in India does not exceed 90 days.

10(6A): Tax paid on behalf of foreign companies

10(7): foreign allowance granted by the government of India to its employees posted
abroad.

10(8 & 9): Remuneration received from a foreign government by an individual who is
in India in connection with any sponsored co-operative technical assistance
programme with a foreign government and the income of the family members of such
employee.
Remuneration / fees received by non-resident consultants and their foreign
employees.

10(10): Death cum retirement Gratuity.

10(10A): Pension received via annuity plan of LIC or other insurer.

10(10AA): Leave salary. It is fully or partly exempted based on whether employee

avails it while in the job or while leaving the job and whether he is govt. or non-govt.
employee.

10(10B) : Retrenchment compensation.

10(10BB): compensation received by victims of Bhopal Gas disaster.

10(10BC): Compensation from the central government or a state govt. or a local

authority received by an individual or his legal heir on account of any disaster.

10(10C): compensation received by a public sector company at the time of voluntary

retirement or separation.
10(10CC): Tax on perquisite paid by employer. Here, tax is paid by employer.

10(10D): Any sum on life insurance policy.

10(11): Any amount from provident fund paid to retiring employee.

10(13A): House rent allowance subject to certain limits

The least of following amounts is exempted:
1. 50 % of Salary
2. The HRA received by employee during the period for which rental
accommodation is occupied.
3. The excess of rent paid over 10% of salary.

10(14): Special Allowance granted to an employee. – Traveling allowance,

conveyance allowance, daily allowance, helper allowance , research allowance,
uniform allowance.

10(15): Interests from certain exempted securities.

10(16): Scholarship granted to meet cost of education.

10(17): Daily allowance of a member of parliament or state legislature.

10(18): Pension & family pension of gallantry award winners.

10(19): Family pension received by family members of armed forces.

10(20): Income of local authorities

10(21): Any income of an approved scientific research association.

10(23AAA): Income of funds established for the welfare of employees.

10(23AAB): Any income of pension fund set up by LIC or any other insurer approved
by the controller of insurance.

10(23C): Income received by any person on behalf of specifies national funds,

approved public charitable institutions, educational institute and hospital.

10(23D) : Income of a mutual fund set up by a public sector bank or public financial
institution.

10(24) : Income by way of interest on securities, property income & income from
other sources of a registered trade union or an association of registered trade unions.

10(25A): Income of employees’ State Insurance Fund.

10(27): Income of co-operative society formed for promoting interest of members of

schedule castes /tribes.
10(29A): Income of certain commodity boards/ authorities.

10(32): Income of Minor child upto Rs. 1500 in respect of each minor child whose
income is includible under section 64(1A)

10(34): Dividend on or after April 1, 2003 from domestic companies.

10(35): Interest on units of mutual fund on or after April 1, 2003.

10(36): Capital gains on transfer of listed equity shares.

10(39): Income of an international sporting event.

10(43): Any amount received by an individual as a loan (either in lump sum or

installment) in transaction of reverse mortgage.