GENERAL KNOWLEDGE

Detailed explanation-1: -The Income Tax Act exempts income of a local authority under the various heads within its own jurisdictional area or from the supply of water or electricity within or outside its own jurisdictional area.

Detailed explanation-2: -Municipal tax – Municipal taxes is the annual amount paid to the municipal corporation of that area. Municipal taxes are to be deducted from the Gross Annual value to derive the Net annual value of the house property.

Detailed explanation-3: -Answer: No, all services provided by the Government or a local authority are not exempt from tax.

Detailed explanation-4: -Section 10(10CC) provides exemption only in respect of tax on non-monetary perquisites. In other words, this section does not provide exemption in respect of perquisites or tax paid on monetary perquisites. As per section 10(10D), any amount received under a life insurance policy, including bonus is exempt from tax.