Everyone now understands the importance of saving money. This is why people are always looking for good investment options. Especially if a scheme offers tax-free returns people love to invest in those schemes. In today’s article, we will let you know about the various schemes which can save you a lot of tax.
No Income Tax on These Incomes
People who earn from farming are exempted, so if your major income source is farming or you are a partner in a farm the profit you earn from the farm business will be tax-free. There is more income that is tax-free, those are mentioned below:
Money received from HUF: If you have an Undivided Hindu Family then any amount received by inheritance HUF under the 10(2) Income Tax Act is tax-free.
Voluntary Retirement: In case a government employee takes voluntary retirement before the actual time he can get the VRS amount. This money is tax-free up to Rs 5 lakh.
Gratuity: Employees receive Gratuity for working in a company for 5 years. This amount is nontaxable up to Rs 20 Lakh. This means if you receive gratatuity up to Rs 20 Lakh then you don’t need to pay any tax on it.
Parent’s inheritance: If you receive money, jewelry, or property from your parents then it will be nontaxable. Only if you invest the money into some scheme and earn some money that amount will be taxable.
Investment in PPF: If your company does not give provident funds or any other benefits you can open a Public Provident Fund or PPF account in any bank. If you invest 5 years straight in PPF then withdrawals will be tax-free.
