Incomes exempt under section 10



Income exempt from tax 



Incomes exempt under section 10 Income Tax Act 



1. Agricultural Income (section 10(1))- Agricultural income in exempt from tax if it comes within the definition of “agrii income” as given in section 2(1A). 



2. RecepRe by a member from a Hindu u divided family [sec. 10(2)]-

Any sum received by an individual, as a member of a Hindu undivided family, either out of income of the family or out of income of estate belonging to the family, is exempt from tax. Such receipt are not chargeable to tax in the hands of an individual member even if tax is not paid or payable by the family on it’s total income. 


3. Share of profit from partnership firm [10(2A)]- 

Share of profit received by partners from a firm is not taxable in the hands of partners. 
Case law: 
Vidya Investment & Trading Co. (P) Ltd. V. Union of India 2014 
Held: Share of profit is exempt in hands of partners even I if it includes incot exempted under clauses (34), (35), and (38) of Section 10. 


4. Casual and Non-recurring receipts [sec. 10(3)]- 



5. Interest to non-resident [sec. 10(4), (4B)]



6. Leave travel concession to an Indian citizen [sec.10(5)] 



7. Salary received by a foreign diplomat and other Nationals [sec. 10(6)(ii)/(vi)] 



8. Salary received by a ship’s crew [10(6)(viii)] 

8. Pension and leave salary [sec. 10(10A), (10AA)- 
Any payment received by way of communication of pension by an undindivid out of annuity vplan of the life insurance corporation of Indian from a fund set by that corporation shall be expempt under section 10(10A). 


Income exempt under section 13A 



The following categories of income derived by a political parties are not included in computing it’s total incot: 

a. Any income which is chargeavch under the heads “Income from house property”, “capital gains” and “Income from other sources”; and 
b. Any income by way of voluntary contribution.