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Home  ❯  Tax  ❯  Info  ❯  Exempt Incomes

Incomes Exempt from Income Tax

Information about various exemptions available under Section 10 of Income Tax Act. Please click / tap on the exemption type to view / hide its content.

(i) Government employees
Exempt Amount :Entire Amount
Available to :Individual - Salaried Employee
(ii) Other employees who are covered under Gratuity Act, 1972 -
Exempt Amount :Least of following amount is exempt from tax:
1. (*15/26) X Last drawn salary** X completed year of service or part thereof in excess of 6 months.
2. ₹ 10,00,000
3. Gratuity actually received.
*7 days in case of employee of seasonal establishment.
** Salary = Last drawn salary including DA but excluding any bonus, commission, HRA, overtime and any other allowance, benefits or perquisite
Available to :Individual - Salaried Employee
(iii) Other employees who are not covered under Gratuity Act, 1972
Exempt Amount :Least of following amount is exempt from tax:
1. 1/2 X Average Salary* X Completed years of service
2. ₹ 10,00,000
3. Gratuity actually received.
*Average salary = Average Salary of last 10 months immediately preceding the month of retirement
**Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission
Available to :Individual - Salaried Employee
Section 10(10A)
a) Government employee
Exempt Amount :Entire Amount
Available to :Individual - Salaried Employee
b) Other employees
Exempt Amount :1. 1/3rd of full value of commuted pension, if gratuity is received by the employee
2. 1/2 of full value of commuted pension, if gratuity is not received by the employee
Available to :Individual - Salaried Employee
Section 10(10AA)
a) Government employee
Exempt Amount :Entire Amount
Available to :Individual - Salaried Employee
b) Other employees
Exempt Amount :Least of the following shall be exempt from tax:
  1. Amount actually received
  2. Unutilized earned leave* X Average monthly salary
  3. 10 months Average Salary**
  4. ₹ 3,00,000

    *While computing unutilized earned leave, earned leave entitlements cannot exceed 30 days for each year of service rendered to the current employer

    **Average salary = Average Salary*** of last 10 months immediately preceding the retirement

    ***Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission

Available to :Individual - Salaried Employee
Section 10(10B)
Exempt Amount :Least of the following shall be exempt from tax:
a) An amount calculated as per section 25F(b) of the Industrial Disputes Act, 1947;
b) ₹ 5,00,000; or
c) Amount actually received.
Available to :Individual - Salaried Workmen
Section 10(10C)
Exempt Amount :Least of the following is exempt from tax:
1) Actual amount received as per the guidelines i.e. least of the following
a) 3 months salary for each completed year of services
b) Salary at the time of retirement X No. of months of services left for retirement; or
2) ₹ 5,00,000
Available to :Individual - Salaried Employee
Section 10(13A)
Exempt Amount :Least of the following is exempt from tax:
(i) 50% of salary* for metro cities** and 40% of salary for other cities
(ii) Actual HRA received
(iii) Excess of rent paid over 10% of salary*
* Salary = Aggregate of basic salary, DA (to the extent it forms part of retirement benefits) and turnover based commission
** Delhi, Mumbai, Kolkata, Chennai
Available to :Individual - Salaried Employee
(Subject to certain conditions and limited to amount actually spent) Section 10(5)
Notes:
  • The amount should be received by employee from his employer or former employer for leave to any place in India during term of service or after retirement/termination;
  • Exemption shall be available for amount incurred in respect of fare for going anywhere in India by employee along with his family. The family means - her/his spouse and children, parents, brothers and sisters only when they are wholly or mainly dependent on the assessee.
  • The exemption can be availed for two journeys in a block of 4 calendar years.
  • Exemption shall be available for journey performed by a shortest route and by prescribed mode of transportations in prescribed situations.
Exempt Amount :Limited to amount actually spent and subject to maximum limits as specified
Available to :Individual - Salaried Employee
Section 10(10CC)
Exempt Amount :Entire Amount
Available to :Individual - Salaried Employee
Section 10(12)
Exempt Amount :To the extent provided in Rule 8 of Part A of the Fourth Schedule of the Income-Tax Act.
Available to :Individual - Salaried Employee
Section 10(12A)
Exempt Amount :Exempt up to 40% of amount due at the time of closure or opting out of the scheme.
Available to :Individual
Section 10(13)
Exempt Amount :Exempt subject to certain limits
Available to :Individual - Salaried Employee
Section 10(14)
Exempt Amount :To the extent allowance actually incurred for the performance of official duties.
Available to :Individual - Salaried Employee
Section 10(16)
Exempt Amount :Entire Amount
Available to :Individual
Section 10(19)
Exempt Amount :Entire Amount
Available to :Individual - Widow or children or nominated heirs of members of the armed forces.
Section 10(11)
Exempt Amount :Entire Amount
Available to :Individual and HUF
Section 10(11A)
Exempt Amount :Entire amount (including interest accrued on the deposit made in such account) shall be exempt from tax
Available to :Individual (who deposited the amount in accordance with Sukanya Samriddhi Account Rules, 2014)
Section 10(10D)
Exempt Amount :Entire Amount
Available to :Any Assessee
Section 10(32)
Exempt Amount :₹ 1,500 per child or Income of Minor, whichever is lower
Available to :Individual
Section 10(2)
Exempt Amount :Entire amount [Subject to the provisions of Section 64(2)]
Available to :Individual, being a member of an HUF
Section 10(2A)
Exempt Amount :Entire amount
Available to :Partners in a partnership firm
Section 10(4)(ii)
Exempt Amount :Entire amount
Available to :Person resident outside India (under FEMA Act) and person who has been permitted to maintain said account by RBI
Section 10(4B)
Exempt Amount :Entire Amount
Available to :Individual, being a citizen of India or a person of Indian Origin, who is a non resident.
Section 10(10BC)
Exempt Amount :Entire amount except for the amount allowed as deduction under this Act on account of loss caused by such disaster.
Available to :Individual or his Legal heir
Section 10(37)
Exempt Amount :Entire Amount of capital gains, if:
a) Compensation is received after 31-03-2004; and
b) Agriculture land was used by taxpayer or his parents for agricultural purpose during last two years
(Subject to certain conditions)
Available to :Individual and HUF
Section 10(9)
Exempt Amount :Entire Amount
Available to :Individual
Section 10(43)
Exempt Amount :Entire Amount
Available to :Individual
Section 10(15)(iic)
Exempt Amount :Interest Amount
Available to :Individual and HUF
Section 10(15)(iib)
Exempt Amount :Interest Amount
Available to :Individual and HUF
Section 10(15)(iid)
Exempt Amount :Interest Amount
Available to :Individual, being a:
a) NRI or nominee or survivor of NRI;
b) Individual to whom bonds have been gifted by NRI
Section 10(15)(iv)(fa)
Exempt Amount :Interest Amount
Available to :a) Non-resident
b) Individual or HUF being a resident but not ordinary resident
Section 10(15)(iv)(i)
Exempt Amount :Interest Amount
Available to :Individual, being an employee of Central and State Government or Public Sector Company.
Section 10(15)(viii)
Exempt Amount :Interest Amount
Available to :Person who is a non-resident or not ordinarily resident.
Section 10(6)(ii)
Exempt Amount :Entire Amount (Subject to conditions)
Available to :Individual (not being a citizen of India)
Section 10(6)(vi)
Exempt Amount :Entire Amount, if
1. Foreign enterprise is not engaged in any trade or business in India
2. His stay in India does not exceed in aggregate a period of 90 days in such previous year
3. Such remuneration is not liable to deducted from the income of employer chargeable under this Act
Available to :Individual - Salaried Employee (not being a citizen of India)
Section 10(6)(viii)
Exempt Amount :Entire Amount
Available to :Non-resident Individual - Salaried Employee (not being a citizen of India)
Section 10(6)(xi)
Exempt Amount :Entire Amount
Available to :Individual - Salaried Employee (not being a citizen of India)
Section 10(7)
Exempt Amount :Entire Amount
Available to :Individual- Salaried Employee (being a citizen of India)
Section 10(8)
Exempt Amount :Entire Amount
Available to :Individual
Section 10(8A)
Exempt Amount :Entire Amount
Available to :Individual, being a:
a) A non-resident engaged by the agency for rendering technical services in India;
b) Non-in Indian citizen; or
c) in Indian citizen who is not ordinarily resident in India
Section 10(8B)
Exempt Amount :Entire Amount
Available to :Individual, being a:
a) Non-in Indian citizen; or
b) in Indian citizen who is not ordinarily resident in India
Section 10(17)(i)
Exempt Amount :Entire Amount
Available to :Individual - Member of Parliament or State Legislature or any Committee thereof.
Section 10(17)(ii)
Exempt Amount :Entire Amount
Available to :Individual - Member of Parliament
Section 10(17)(iii)
Exempt Amount :Entire Amount
Available to :Individual - Member of State Legislature
Section 10(19A)
Exempt Amount :Entire amount
Available to :Individual
Section 10(23FBB)
Exempt Amount :That proportion of distributed income which is of the same nature as income chargeable under the head PGBP.
Available to :Unit holder of an investment fund specified under Section 115UB
Section 10(23FD)
Exempt Amount :Any income (except interest received from a SPV or any rental income) distributed by business trust to its unit holders
Available to :Unit holder of a business trust.
Section 10(26)
Exempt Amount :Entire Amount
Available to :Individual being a member of Scheduled Tribe
Section 10(26AAA)
Exempt Amount :Entire Amount
Available to :Individual, being a Sikkimese (other than Sikkimese Woman who, after 31-03-2008, marries non-Sikkimese)
Section 10(45)
Exempt Amount :Entire Amount
Available to :Individual - Chairman/ Retired Chairman or any other member/ retired member of UPSC

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In case of any doubt / clarification, please visit the official website of Income Tax Department.

Updated : Sept 19, 2020