5 Tax-Free Income Sources: Are You Using All?
Many Indians overpay tax simply because they don't know which income sources are legally exempt. From PPF interest to agricultural income, here are 5 zero-tax income types you should be using right now.
PPF interest on ₹1.5L/year investment is 100% tax-free — that's ₹10,500+ saved annually just on interest alone.
You could legally pay zero tax with the right income mix
Key Takeaways
Start or top up your PPF account before March 31 — interest earned and maturity amount are completely tax-free under Section 10(11).
Check if your employer pays you HRA, LTA, or gratuity — these are partially or fully exempt and can legally reduce your taxable salary.
If you receive gifts from parents or close relatives, keep a written record — gifts from specified relatives are fully exempt under Section 56(2), unlike gifts from friends.
Many Indians overpay tax simply because they don't know which income sources are legally exempt. From PPF interest to agricultural income, here are 5 zero-tax income types you should be using right now.
Here's what happened: The Income Tax Act lists several income types as fully exempt under Section 10 — they don't even need to be reported as taxable income.. PPF maturity proceeds, interest, and agricultural income are among the most widely available tax-free sources for salaried and self-employed individuals.. Under the new tax regime, standard deduction of ₹75,000 plus rebate under Section 87A makes income up to ₹7 lakh effectively tax-free for salaried taxpayers..
What you should do: Start or top up your PPF account before March 31 — interest earned and maturity amount are completely tax-free under Section 10(11).. Check if your employer pays you HRA, LTA, or gratuity — these are partially or fully exempt and can legally reduce your taxable salary.. If you receive gifts from parents or close relatives, keep a written record — gifts from specified relatives are fully exempt under Section 56(2), unlike gifts from friends..
ULIP maturity proceeds are tax-free under Section 10(10D) only if annual premium stays below ₹2.5 lakh — exceed this and the entire corpus becomes taxable.
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This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.