Income Tax is collected on all types of income except ............

The correct answer is - Agriculture Income

Key Points

• Agriculture Income
  • Income earned from agricultural activities is exempt from Income Tax under Section 10(1) of the Income Tax Act, 1961.
  • This exemption is applicable to income derived from cultivation, harvesting, and selling agricultural produce.
  • The exemption applies only if the agricultural activities are conducted on land classified as agricultural land under government regulations.
  • However, income from agriculture may be considered for tax rate calculation in certain cases, but it is not directly taxed.

Additional Information

• Taxable Income Categories
  • Income from Salary: Earnings received by an individual for services rendered, including basic pay, allowances, and bonuses, are taxable.
  • Income from Capital Gains: Profit from the sale of capital assets such as property, stocks, or bonds is taxable under specific provisions.
  • Income from Lottery: Winnings from lotteries, game shows, or other similar sources are taxable under Section 115BB of the Income Tax Act.
• Special Exemptions
  • Certain other incomes, like dividend income and long-term capital gains, may be taxed at lower rates or exempt under specific conditions.
  • Government provides exemptions to encourage activities like agriculture and charitable work.