Agriculture & Other Exempted Incomes1
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Transcript of Agriculture & Other Exempted Incomes1
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AGRICULTURE
& OTHER
EXEMPTED INCOMES
Agricultural Income
Share in HUF & Partnership
Exemption to Non-residents
Other exemptions
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Agricultural income in India
Share in profit of a Partnership
Share in profit of a HUF
Payment received from PPF
Payment received from RPF
Payment received from Statutory PF
Maturity Payment on Life Insurance
Dividend from Domestic/Indiancompany
Leave Travel Concession
Other exemptions
EXEMPTED INCOMES IN INDIA
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Agricultural income 10(1)
Such income must satisfy the three conditions:
y Rent or Revenue should be derived from Land.
y The Land must be used for Agricultural purposes.
y The Land must be used for Agricultural purposes.
Then, it is Exempt from the Tax but it is included in thetotal income to determine the rate of Tax at which thetotal without Agriculture Income would be liable to tax.
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PARTLY AGRICULTURE INCOME
(RULE NO.7)
If Agriculture produce,produced by the
assessee is used in the non-agriculture
finished product which is also produced by
the assessee,then market value of theagricultural produce must be debited in P&L
a/c.
And agriculture income= Market value of
agricultural product-cost of agricultural
product.
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RECEIPT FR M HUF U/S 10(2)
Any sum received by
an Individual as a
member of HUF out of
estate of income of thefamily is e empt from
ta and not included in
the total income of the
Individual.
The logic behind this is
that HUF is already
ta ed on this income
and hence no tashould be levied on
distribution of the
income of HUF.
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PARTNERS SHARE IN PR FIT F FIRM
U/S 10(2A)
In case of a person who is a partner of
a firm which is separately assessed in
that case the amount of share in theprofits of firm ascertain as per the
partnership deed is e empted from
ta .
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LEAVE TRAVEL C NCESSI N U/S 10(5)
The Value of leave travel concession received ordue to an individual is e empted to the e tent it isactually spent.
Thus, the e emption is available to any individual inrespect of the value of any travel concession orassistance received by or due to him,
From his employer for himself and his family, inconnection with his proceeding on leave to anyplace in India.
From his employer or former employer for him selfand his family, in connection with his proceeding toany place in India after retirement service or Afterthe termination of service.
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INTEREST T N N-RESIDENTS U/S 10(4)
Interest on bonds issued by Government.
Interest on FCNR deposits.
Interest on NRE deposits.
Interest on specified savings certificates
received by non-resident Indian citizens u/s
10(4B).
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SALARY O FNO N-RESIDENT
EMPLOYEE OF A FOREIGN SHIP[U/S
10(6)
The Sub-clause (viii) off section 10((6)) gives the
e emption from ta in case off an individual who iis
not a citizen of India and non- resident,in respect of
income chargeable under the head Salaries
received by him for service rendered in connection
with his employment on a foreign ship. However,his
total stay in India should not e ceed in aggregate a
period of ninety days in the previous years.
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FOREIGNALLOWANCES AND PERQUISITES
TOG
OVERNMENTE
MPLOYEES OUT SIDE
INDIA [U/ S 10(7)]
Sub-section (7) of section 10 states
that any allowance or perquisites paid
or allowed as such out side India by
the Government to a citizen of India for
rendering services outside India will be
totally e empted from ta .
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LIC/PF EXEMPTIONSAmount received in life insurance policy [U/ S
10(10)]
Any sum received under a life insurance policy,
including the sum allocated by way of bonus onsuch policy shall be totally e empt from ta .
Payment from provident fund[U/S 10(11)]
Any payment from a provident fund to which the
provident funds Act, 1925, applies or from any otherprovident fund set up by the central Government
and notified in the official gazette (i.e. public
provident fund)is totally e empted from ta .
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RPF/ HRAAccum ulated balance from a recognized provident
fund [u/s 10(12)]
The accumulated balance due and becoming
payable to an employee participating a recognizedprovident fund, to the e tent provided in rule of part
A of schedule, is e empted from ta .
Payment from an approved superannuating fund
[U/S 10(13)]]
House rent allowance [U/S 10(1 3A)]
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OTHEREXEMPTIONS Income of a consultant under a technical assistant
grant Agreement between the international
organization and the Government of foreign state
[U/S 10(8A)]
Income of an Individual who is assigned to duties in
India in connection with any technical assistance
agreement entered and project in accordance with
an agreement entered into by the central
Government and the Agency[U/ S10(8B)].
Payment under the Bhopal Gas Leak Disaster
(processing of claims) Act, 1985 [U/S 10(10BB)].
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COMPENSATION ON RETIREMENT OF AN
EMPLOYEE[U/S 10(10C)]
At the time of his voluntary retirement or termination
of his service in accordance with any scheme of
voluntary retirement or in case of public sector
company referred to in point (a) above, a scheme of
voluntary separation, shall be e empted to the
e tent such amount does not e ceeds five rupees,
shall be e empted to the e tent such amount does
not e ceeds five lakh rupees.
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SCHOLARSHIP/ MP ALLOWANCE
Scholarship [U/S 10(16)]
Scholarship granted to meet the cost of
education is totally e empt from ta and will
not be included in the computation ofincome.
Allowances received by the member of
parliament or state legislature [U/S 10(17)]
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PENSION RECEIVED BY A PERSONHONORED
BY A GALLANTRYAWARD [U/S 10(18)]
This clause provides e emption for any income by
way of :-
Pension received by an individual who has been in
service of central or state Gov. and has beenawarded,Parama Vir Chakra),MahaVir Chakra or
Vir Chakra.
Family pension received by any member of the
family in case of death of the awardee.
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SUBMITTED TO:-
MORADABAD BRANCH OF
CIRC
BY:-
DHRUV AGARWAL