Which profession is income tax free in India?

Asked by: Anabelle Shields  |  Last update: August 27, 2025
Score: 5/5 (35 votes)

1) Agricultural Income Section 10(1) of the Income Tax Act specifies that income earned from farming and agriculture is considered tax-free income in India. Since the implementation of the Income Tax Act of 1961, the Indian government has exempted agricultural Income from tax obligations.

Which incomes are tax-free in India?

List of Tax-Free Income Sources
  • Income Earned from Agriculture. ...
  • Gifts Received. ...
  • Money Received from Insurance. ...
  • Receipts from a Partnership Firm or Limited Liability Partnership (LLP) as Profit Share. ...
  • Income from Provident Funds. ...
  • Income from Pension. ...
  • Income from Scholarships, Rewards, and Relief Funds. ...
  • Interest Income.

Who is exempt from income tax in India?

Individuals under the age of 60 years are usually eligible for a basic tax exemption limit of Rs.2.50 lakh. The exemption is capped at up to Rs.3 lakh in case of senior citizens. However, all Indian salaried professionals are subject to the many conditions and subsections outlined in Section 10 of the Income Tax Act.

What type of income is tax-free?

Inheritances, gifts, cash rebates, alimony payments (for divorce decrees finalized after 2018), child support payments, most healthcare benefits, welfare payments, and money that is reimbursed from qualifying adoptions are deemed nontaxable by the IRS.

What jobs don't pay taxes?

If you are looking for a position where your taxes are not automatically taken out of your paycheck, here are some options that could work for you:
  • Independent contractor.
  • Social media influencer.
  • Small business owner.
  • Priest. Average Salary: $44,712.
  • Hair Stylist. ...
  • Nail Technician. ...
  • Volunteer Work.
  • Delivery Driver.

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35 related questions found

How much income is tax-free in India in 2024?

The income tax slabs under the new tax regime for FY 2024-25 (AY 2025-26) are: Up to Rs. 3,00,000: No tax or surcharge, Rs. 3,00,001-Rs. 7,00,000: 5% on income exceeding Rs. 3,00,000, Rs. 7,00,001-Rs. 10,00,000: Rs. 20,000 plus 10% of income above Rs. 7,00,000, Rs. 10,00,001-Rs. 12,00,000: Rs. 50,000 plus 15% on excess ...

Who are tax-free people in India?

Sikkim is the only state in India where residents are exempt from income tax due to Article 371(F) of the Indian Constitution and Section 10(26AAA) of the Income Tax Act, 1961. This unique status, stemming from Sikkim's 1975 merger with India, provides significant financial relief to its residents.

How to avoid paying income tax on salary?

How to Avoid Paying Taxes Legally
  1. Self-employment tax deduction.
  2. Deduction for business expenses.
  3. Contribution to a retirement plan.
  4. Contribution to an HSA.
  5. Donation to a Charity.
  6. Claim of Child Tax Credit.
  7. Time year-end income and expenses.

Which business has less tax in India?

Agricultural Income is completely non-taxable as per Section 10(1) of the Income Tax Act. Agricultural income refers to the income earned from: A) Production, Processing & Sale of agricultural crops like Grains, Pulses, Vegetables, Fruits, Spices, etc.

Who all don't pay taxes in India?

1. farmers 2. Sikkim domicile 3.

How can I save my tax in India?

Tax Saving Options Other than Section 80C
  1. You can get Medical Insurance & claim a deduction of up to Rs. ...
  2. A deduction of up to Rs 50,000 can be claimed on home loan interest under Section 80EE.
  3. A tax deduction of up to Rs 1.5 lakh for contributions to NPS (National Pension System) can be claimed under Section 80CCD.

Who doesn't have to pay income tax?

Who Does Not Have to Pay Taxes? You generally don't have to pay taxes if your income is less than the standard deduction or the total of your itemized deductions, if you have a certain number of dependents, if you work abroad and are below the required thresholds, or if you're a qualifying non-profit organization.

How can I get tax-free salary in India?

10 Sources of Earning Tax-Free Income in 2024
  1. Income from Agriculture. ...
  2. Profit from Partnership Firm. ...
  3. Earnings from Public Provident Fund. ...
  4. Maturity Amount from Insurance. ...
  5. Payments from a Hindu Undivided Family (HUF) ...
  6. Amount Received as Gratuity. ...
  7. Tax-Free Pension Income. ...
  8. Compensation from the Employer.

Which retirement plan is tax-free?

Roth IRA or Roth 401(k) – Roth IRAs and Roth 401(k)s have tax-free qualified withdrawals at retirement since taxes are paid on contributions.

Who is the highest tax payer in India?

The list of India's highest tax-paying celebrities for the 2023-24 financial year was published by Fortune India in September. Topping the list was superstar Shah Rukh Khan, who paid Rs 92 crore in taxes.

How do I reduce my taxable income?

8 ways to potentially lower your taxes
  1. Plan throughout the year for taxes.
  2. Contribute to your retirement accounts.
  3. Contribute to your HSA.
  4. If you're older than 70.5 years, consider a QCD.
  5. If you're itemizing, maximize deductions.
  6. Look for opportunities to leverage available tax credits.
  7. Consider tax-loss harvesting.

How can I legally avoid payroll taxes?

Taxes must be paid

There is no way to get out of paying payroll taxes. If there is a dispute, you will need to spend money on a lawyer and time away from running the business. In the long run, it is easier to make sure that you pay your payroll taxes on time rather than trying to find ways to avoid paying them.

What happens if you earn over 100k?

Income over £100,000

Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zero if your income is £125,140 or above.

Which field is tax-free in India?

Income generated from agricultural activities is entirely tax-exempt under Section 10(1) of the Income Tax Act and is tax-free income in India. Revenue obtained from family income or property by any member of the HUF, 1961, or income from the impartible family estate is also fully tax exempt.

Does NRI pay tax in India?

An NRI's income taxes in India will depend upon his residential status for the year as per the income tax rules mentioned above. If your status is 'resident', your global income is taxable in India. If your status is 'NRI,' your income earned or accrued in India is taxable in India.

Who are exempted from income tax in India?

Income Tax Exemption Limit

The basic exemption limit for individuals below the age of 60 years is Rs. 2.50 lakhs. For senior citizens the exemption limit is Rs. 3 lakhs and for very senior citizen who are above 80 years, it is Rs.

What kind of income is not taxable?

Disability and worker's compensation payments are generally nontaxable. Supplemental Security Income payments are also tax-exempt. Disability compensation or pension payments from the Department of Veterans Affairs to U.S. military Veterans are tax-free as well.

What is angel tax in India?

What is Angel Tax? Definition: Refers to the income tax that the government imposes on funding raised by unlisted companies, or startups, if their valuation exceeds the company's fair market value.

Which state is tax-free in India?

The northeastern state of Sikkim is well-known for its stunning mountain landscapes and rich cultural heritage. However, it also has the unique distinction of being the only tax-free state in India!