MANAGEMENT

Detailed explanation-1: -Under Section 10, there are different sub-sections that define what kind of income is exempt from tax. This can range from agricultural to house rent allowance. The term “Exempt Income” refers to any income that a person gets or earns throughout the course of a financial year and is judged to be non-taxable.

Detailed explanation-2: -Nontaxable income won’t be taxed, whether or not you enter it on your tax return. The following items are deemed nontaxable by the IRS: Inheritances, gifts and bequests. Cash rebates on items you purchase from a retailer, manufacturer or dealer.

Detailed explanation-3: -As per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax. Agricultural income is defined under section 2(1A) of the Income-tax Act.

Detailed explanation-4: -Not disclosing the exempt Income in ITR is not the correct manner to file an Income Tax Return and this may have some consequences. Moreover, the new ITR Forms have specific columns wherein the Tax Dept. is specifically asking the taxpayers for the exempted incomes earned during the year.