INCOME TAX ACT, incomes exempt, exempted income, by Neepa Vyas, Income, section 10

1. EXEMPTED INCOME
SECTION 10, INCOME TAX
ACT, 1961
By
Dr. Neepa Vyas

2. Dr. Neepa Vyas Semester III
The amount is first
included in the income of
the taxpayer and then the
deduction is allowed as
per the rules.

3. Dr. Neepa Vyas Semester III
The income which is
not charged to tax.

4. List of exempted income…
Dr. Neepa Vyas Semester III
Section 10 (1)

5. Case Laws :-
Dr. Neepa Vyas Semester III
(1) P.N. Krishna Iyer vs CIT
 Income received by a member of a Hindu
undivided family from a firm or a company in
which the funds of the Hindu undivided family
are invested, even though the income may be
partially traceable to personal exertion of the
member, is taxable as the income of the Hindu
undivided family, if it is earned by detriment to
the family funds or with the aid or assistance of
those funds; otherwise it is taxable as the
member’s separate income.

6. Dr. Neepa Vyas Semester III
(2) V.S.D. Dhanwatey v/s CIT (1968) 68 ITR
365
 The general doctrine of Hindu law is that
property acquired by a karta or a coparcener
with the aid or assistance of joint family assets
is impressed with the character of joint family
property.

7. Section 10 (2A)
Dr. Neepa Vyas Semester III

8. Case Laws…
Dr. Neepa Vyas Semester III
 Radha Krishna Jalan v/s. CIT (2007) 165
Tsxman 538 (Gau)
Sub Partnership receives share of profit of a
partner in main partnership..

9. Sec. 10 (23AAB)
Dr. Neepa Vyas Semester III

10. Commuted
Pension
Uncommuted
Pension
Dr. Neepa Vyas Semester III

11. Dr. Neepa Vyas Semester III

12. Section 10 (10)
Dr. Neepa Vyas Semester III

13. Dr. Neepa Vyas Semester III

14. Section 10(17)
Dr. Neepa Vyas Semester III

15. Sec. 10(19)
Dr. Neepa Vyas Semester III

16. Section 10(23C)
Dr. Neepa Vyas Semester III

17. Section 10 (16)
Dr. Neepa Vyas Semester III

18. Important points..
Dr. Neepa Vyas Semester III
(1). Once it is proved that the amount is
received as “Scholarship”, it will be fully
exempt, irrespective of its terms of award.
(2). It is exempt from tax even if the recipient
does not spend the whole amount towards the
education / saves it.
(3) Cost of Education = tuition fees + incidental
expences.

19. Other exempted incom
Dr. Neepa Vyas Semester III
 Retrenchment compensation (10(10B))
 Compensation on account of any disaster
(10(10BC))
 Residents of Ladakh (10 (26AA))
 Sikkimese individual( “ )
 Awards (10 (17A))

20. Dr. Neepa Vyas Semester III

21. Dr. Neepa Vyas Semester III