Certain incomes, to the extent provided in clauses of section 10 of the Income-tax Act are exempt from income-tax, however, certain exempted incomes are chargeable under the respective head of income and therefore, exemption in respect of such income is required to be claimed/allowed under section 10 of the Income-tax Act, only after such income is included in computation of income in respective head of income. Similarly, any other exempted incomes are also to be disclosed in the return of income (ITR) to be filed on-line for reporting purpose. Further, while filing income-tax return, the manner for disclosure of such income is required to be followed.
Non-disclosure of exempt income does not amount to under reporting of income, however, to explain source of investment, if any made out of exempt income, it is in the interest of the taxpayer to disclose such income in the manner prescribed in the return of income. In this video, correct method of disclosure of exempted income in the return of income has been discussed. The necessity of disclosure of such income has also been explained with an example.
Useful video links are given below: -
• Taxability of retirement benefits- https://youtu.be/TdnE32h2_nM
• Exemption on Government Employees Group Insurance Scheme- https://youtu.be/UnyWtld1vHE
• Exemption in respect of insurance policies u/s 10(10D)- https://youtu.be/RBnT3kUhCLg
• How to select your return form -https://youtu.be/DNLl-FIYQug
• All about ITR-1 (Sahaj)- https://youtu.be/539SnmGViVc
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