Some sacred incomes, the tax world gives a salute and says we are not putting you to tax. Some free trips come your way in your journey. Just like all shopping in holy month of Ramzan is considered sacred and a bonus or freebie, so is exempt income free.
These incomes are free from tax incomes in your hand. So, there’s a defined list of incomes, if you are getting any of these, there’s no tax on them.
Common ones are: Interest earned on NRE account, Interest on Public Provident Fund. Dividends on mutual were tax free till financial year 2019-20, now they will be taxable.