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Synopsis
Introduction Meaning of Exemption Income not included in total income: Section 10 Analysis Conclusion
Introduction
Chapter III of the Income-tax Act, 1961 deals with the
Incomes which do not form part of total income i.e. incomes which are exempted from inclusion for purposes of tax calculation.
Meaning of Exemption
Exemption means 'a part of your income that
you do not have to pay tax on.
-Oxford Dictionary
SECTION 10
Section 10(17)
Daily Allowance of Members of Parliament
Any income by way of daily allowance received by MP or of State Legislatures is exempted from tax.
operational duties.
Section 10(37)
Capital gain on compulsory acquisition of
Section 10(38)
Long-term capital gains on transfer of equity
Section 10(39)
Income from any international sporting event
Income arising from a notified international sporting event is exempt from tax from the assessment year 2006-07 if such event is approved by the international
body.
Analysis
Exemptions are given in the IT Act 1961 which are the
thrust areas of the Government i.e. areas where government wishes to boost growth so as to get strength in the desired field.
Conclusion
In sum up, it can be said that income falling within any of
these categories shall not be included in the computation of the total income of a previous year of any person.