Income Exempted from tax under Sec. 10:
1) Agriculture Income [Sec.10 (1)]: Agriculture income is fully exempted from tax u/s 10(1) and as such does not form part of total income. As per Section 2(1A) agriculture income includes:
a) Any rent or revenue derived from land which is situated in India and is used for agricultural purpose;
b) Any income derived from such land by agriculture or by the process employed to render the product fit for market or by sale of such produce by the cultivator or receiver of rent in Kind.
c) Any income derived from any building provided the following conditions were satisfied:
Ø The building is or on the immediate vicinity of the agricultural land;
Ø It is occupied by the cultivator or receiver of rent or revenue
Ø It is used as a dwelling house or store house or out house ;
Ø The land is assessed to land revenue and it is not situated within the specified area.
2) Receipt of share in HUF as a member [Sec. 10(2)]: The share in the profit of the HUF received by the member of HUF is wholly exempt.
3) Receipt of share of profit in Partnership firm as partner [Sec.10 (2A)]: The share in the profit of the firm received by the partner is wholly exempt.