Top 6 sources of income besides PF, EPF and PPF which are exempted from income tax

A hit to collection efficiency of microfinance institutions (NBFC-MFIs) owing to protracted COVID-19 curbs will increase asset-quality pressures in the sector.

Partnership profit share: The profit share in a partnership firm is exempt from any kind of tax since the partner firm has already paid income tax. However, remuneration paid to the partner and interest on capital received by the partner is taxable. 

Educational scholarship: Scholarships given for the purpose of meeting education costs in India or abroad are exempt from income tax under Section 10(16) of the Income Tax Act 1961. The scholarship income, however, should have been used only to cover education expenses.

Ancestral property: The beneficiary does not have to pay income tax on inherited ancestral property, such as residential or commercial property, jewelry, cash, and bank balances.

According to a gazette notification, when a government servant retires, retired, discharged, or allowed to resign from service or dies, any claim to gratuity will be regulated by the provision of these rules. 

Agricultural Income: In India, agricultural income is exempt from taxation and not included in the total income. Agri-income refers to sources of income that include agricultural land, buildings found on or attached to agricultural land, and commercial produce harvested from horticultural land.