Exempt Incomes

We  just learnt that Exempt Incomes are totally free, we don’t count these as part of Income. We need to check if any income we get is part of this ‘sacred’ list, if so, we just need to inform that amount, and keep it out of our tax working.

First, we don’t count them under Total Income (as they don’t fall in any of the five categories) Second, we need to inform the Tax Department, what are the Exempt Incomes we earned. Means, we just fill the exempt income amount earned, while filling our tax return.

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

This module will introduce to the world of freebies, called Exempt incomes. We go about as: What are exempt incomes How do we treat exempt incomes Conclusion