Incomes not included in total income

Any revenue falling under one of the following clauses shall not be included in calculating the total income of a person's prior year:-

(a) agricultural income,

(b) any amount received by a person who is a member of a Hindu undivided family when that amount was paid from the family's income or, in the case of an impartible estate, when that amount was paid from the family's estate's income,

(c) his share of the firm's overall revenue in the event that he is a partner in a business that is independently assessed as such. For the purposes of this clause, a partner's share of a firm's total income that is independently assessed as such shall, notwithstanding anything to the contrary contained in any other law, be an amount that bears to the overall revenue of the firm the same percentage as the amount of his share of the firm's profits in accordance with the cooperation deed bears to such profits.

(d) any income from interest on the securities or bonds that the central government may designate in this regard by publication in the official gazette, including any income from premiums on the redemption of such bonds, in the case of a non-resident.

(e) any income from interest on funds held to a person's credit in a non-resident (external) account at any bank in India in compliance with the provisions established under the Foreign Exchange Management Act, 1999 (42 of 1999).

(f) any revenue from interest on these savings certificates issued by the government as that Government may, by the announcement in the Official Gazette32, specify in this regard for an individual who is an Indian citizen or a person of Indian descent but is a non-resident.

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A person will be considered to be of Indian descent for the purposes of this section if they were born in undivided India, either by themselves, their parents, or any of their grandparents. For the provisions of the Foreign Exchange Management Act, 1999 (42 of 1999), and any rules established thereunder, "convertible foreign exchange" refers to foreign currency that is currently considered as such by the Reserve Bank of India.

The leave travel benefit received by an individual taxpayer is free from taxation under section 10 (5). The following must provide the trip discount or assistance:-

(i) the individual's current job for family travel during the fiscal year.

(ii) in relation to a forthcoming trip to an existing or former workplace. After his retirement from the military or after his duty is through, he will be travelling.

The income is excluded when someone who isn't a citizen receives compensation for representing India abroad. The person works for one of the following organisations: acting as a staff member of any of these authorities in an embassy, high commission, legation, commission, consulate, or trade representative of a foreign State.

Get more knowledge at section 12a of income tax act.