Question

Under the Income Tax Act, 1961, which of the following incomes is fully exempt from tax in the hands of the individual taxpayer?

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.