In India, some types of income are completely tax-free. These sources of non-taxable income can help you reduce your tax burden. Here’s a simple breakdown:
1. **Life Insurance Payouts**: If you receive money when your life insurance policy matures, it’s tax-free, as long as your annual premium is within 10% of the total coverage. If your premium is higher, only the excess part gets taxed.
2. **Gifts**: Gifts from family members are tax-free. For non-family gifts, you’re only taxed if the total amount exceeds ₹50,000. Inherited assets or those from family trusts are also not taxed.
3. **Agricultural Income**: Any income you earn from farming or selling agricultural land is not taxed.
4. **Gratuity**: If you’re a government employee, the gratuity you receive is entirely tax-free. For private-sector employees, gratuity up to ₹10 lakh is tax-free, depending on specific conditions.
5. **Tax-Free Interest**: Some savings schemes, like Sukanya Samriddhi Yojana and Infrastructure Bonds, let you earn interest that’s completely tax-free.Knowing these exemptions can help you manage your money better and save on taxes.