Under the Income Tax Act, 1961, which of the following

Q: Answer-Under the Income Tax Act, 1961, which of the following incomes is fully exempt from tax in the hands...

As per Section 101 of the Income Tax Act, 1961, agricultural income is fully exempt from income tax under the Indian tax law. This exemption arises because agriculture is a state subject and agricultural income is not included in the purview of income tax for individuals. Other incomes such as salary, capital gains, and interest income are taxable under various sections of the Act.

incomes is fully exempt from tax in the hands of the individual taxpayer?

A Agricultural income Correct Answer Incorrect Answer

B Salary income from a private employer Correct Answer Incorrect Answer

C Capital gains from sale of shares Correct Answer Incorrect Answer

D Interest income from fixed deposits Correct Answer Incorrect Answer

Solution

As per Section 10(1) of the Income Tax Act, 1961, agricultural income is fully exempt from income tax under the Indian tax law. This exemption arises because agriculture is a state subject and agricultural income is not included in the purview of income tax for individuals. Other incomes such as salary, capital gains, and interest income are taxable under various sections of the Act.

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