BANGALORE:  Tax is considered as one of the largest expenses of all. There is one popular phrase “Taxes are paid, nation are made”, the meaning is simple, tax collected from an individual is used for development of the nation which includes increase in arms and ammunitions for defense and other welfare activities. Yes, true! Tax payment is good for the country but, when it comes to actually paying the tax many of us hesitate to pay or find ways to hide the income. Although all incomes are taxable, there are some which are non-taxable too, let’s find out!

1. Agricultural Income: Agricultural Income is exempt under the provisions of Section 10 (1) of the Income Tax Act; this means incomes earned through agricultural operations are not taxed. Processing and sale of crops from agriculture land is also included in the operations, moreover the rent received from an agricultural land is not taxable. However, for individuals or Hindu Undivided Families when agricultural income exceeds 5, 000, then it is combined with the total income required for computing tax on the total income which results into “no” tax on agricultural income but is considered as an increased income tax on the other income.