Income tax: 5 sources beyond PF, PPF, NPS that are tax exempted
3 years, 9 months ago

Income tax: 5 sources beyond PF, PPF, NPS that are tax exempted

Live Mint  

Paying income tax is necessary for those earning individuals whose annual income is more than ₹2.5 lakh. According to income tax act, one's income from gift including marriage gift, share of profit in a partnership firm, education scholarship, gratuity and ancestral property are income tax exempted. Speaking on the sources of income that are tax exempted under the income tax act 1961; Mumbai-based tax and investment expert Balwant Jain said, "One's marriage gift or general gift up to ₹50,000 in one financial year, share of profit in partnership firm, education scholarship, ancestral property and gratuity is tax exempted subject to certain terms and conditions under the income tax act 1961." 1] Marriage gift: Speaking on how income tax rule applies on marriage gift SEBI registered tax and investment expert Jitendra Solanki said, "One's income from marriage gift is 100 per cent income tax exempted provided the gift is received on or around the marriage date and the receiver of the gift is able to establish one's gift as marriage gift. 5] Gratuity: One's gratuity income up to ₹20 lakh is 100 per cent income tax exempted.

Marriage Tax Gift Income Tax Income Provident Fund Exempted Partnership Firm Education Scholarship Balwant Jain Marriage Gift  share  gift  pf  sources  tax  ppf  exempted  scholarship  property  income  ones  nps  profit  marriage

History of this topic

The fineprint on the new tax on Employees’ Provident Fund income
2 years, 11 months ago

The fineprint on the new tax on Employees’ Provident Fund income

The Hindu  

The story so far: In the Union Budget of 2021-22, Finance Minister Nirmala Sitharaman introduced a new provision to tax income on provident fund contributions from employees beyond ₹2.5 lakh a year. While the tax provision also covers government employees, the contribution limit for tax-free income for them and any other PF accounts where employers do not contribute was set …

Here’s how gifts from kin and others are taxed
3 years, 1 month ago

Here’s how gifts from kin and others are taxed

Live Mint  

Due to its diverse culture, customs, and religion, India is a country of close-knit families with many reasons to rejoice. Immovable property for inadequate consideration Any immovable property for a consideration that is less than the stamp duty value of the property by an amount exceeding Rs. 50,000, the difference between the stamp duty value of such property and the …

Gifts received on marriage are not income and need not to be reported in the tax return
7 years, 3 months ago

Gifts received on marriage are not income and need not to be reported in the tax return

Live Mint  

For purposes of record keeping, are entries in a diary proof enough or do we need to do some other form of record keeping? The total value of gifts received on the occasion of marriage are per se not income under section 56 and hence not to be reported in the tax return as exempt income. —Gajendra Sharma Any income …

Did you know: Tax on gifts received depends on value, occasion
8 years, 5 months ago

Did you know: Tax on gifts received depends on value, occasion

Live Mint  

The October-December quarter is considered auspicious by many, as a lot of festivals are celebrated during this period, and there is the marriage season as well. The general rule Gifts received by an individual during a financial year are tax free only if their aggregate value does not exceeds Rs50,000. Relatives There is no tax on a gift if it …

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