Tax Free Income: If you earn money in these 8 ways, you will not have to pay tax! Surprised? Know the ways

Kolkata: Every income earner files their income tax return every year, be it an employed person or a businessman. At this time, most people try desperately to save tax in any way possible. Although some people know, most people don’t know this way. As a result, you cannot enjoy the benefits of tax exemption. The Income Tax Act includes certain incomes on which the government does not levy any tax. Let’s find out about them today.

1. Income from agriculture
Income derived from agriculture or agricultural land is not taxed in India. This includes income from sale of crops, rent of cultivated land and any other income related to farming.

2. Gratuity
The gratuity received by government employees after retirement is also completely tax free. However, this is not applicable to private sector employees. They may be eligible for some concession on gratuity up to Rs.20 lakhs.

3. Vacation monetization
The encashed leave received by government employees on retirement is also completely tax-free. However, private sector employees can also get exemption up to a maximum of Rs.25 lakh.

4. LIC Policy
If you have LIC and it has expired, you will not have to pay any tax while withdrawing it. However, you have to fulfill some conditions. No tax will be levied if those conditions are met.

5. Profit of LLP
If you are a partner in a firm or have earned profits through an LLP, those profits are not taxable. Because the company has already paid tax on that income. However, salary, commission or interest is taxable.

6. PF
If you have worked continuously for five years in a recognized organization, your PF withdrawal will not be taxed. However, if you have not completed five years with the same establishment, you may be taxed.

7. Gifts received from relatives
If you receive a wedding gift from a close relative or friend, or inherit property, there is no tax on it. However, the condition is that the amount of gift received from a non-relative cannot exceed 50,000 rupees. Any gift above this amount will be taxable.

8. Scholarship
Scholarships received from government or private institutions are completely tax free. This discount is applicable to students of all age groups.