Income Tax Exemptions: 6 Types of Income That Are Not Taxed

Agricultural income in India is tax-free under Section 10(1) of the Income Tax Act.
 

Gifts, per Section 56, including those from relatives, marriage, wills, inheritance, local authorities, trusts, educational or medical institutions, are tax-free.
 

Scholarships provided by institutes for education purposes are tax-exempt in India.
 

Allowances paid by the Indian government to its employees working outside India are tax-free.
 

Government employee pensions are fully exempt from income tax.
 

The money that is received by an individual following the maturity of a life insurance policy is exempt from income tax.