Surprising Tax Exemptions: THESE individuals are free from income tax liability!

financialexpress.com:

Under the Income Tax Act, certain groups living in specific areas of select states in India are exempted from paying income tax. These exemptions are granted based on specific criteria, such as income levels, socio-economic status and occupation of the people forming these groups. This unique approach to taxation helps in lessening the financial burden on disadvantaged people living in these areas, providing them with a level-playing field.

Under Section 10(26) of the income tax laws, exemption from paying taxes is provided to members of scheduled tribes. Such groups of individuals residing in states like Tripura, Mizoram, Manipur, Nagaland, Assam and Arunachal Pradesh are exempted from paying income tax. The tribes living in Ladakh region of the Union Territory of Jammu and Kashmir also get tax exemption.

Also read: Income Tax Return: How to choose correct ITR form for tax filing

As per Section 10(26) of the Income Tax Act, the following income is exempted from income tax: Any income arising or accruing from any source in the specified areas or states, by way of dividend or interest on securities, for a member of a Scheduled Tribe residing in any area specified in the Constitution.

These areas include the North Cachar Hills District, Karbi Anglong District, Bodoland Territorial Areas District, Khasi Hills District (Meghalaya), Jaintia Hills District (Meghalaya), and Garo Hills District (Meghalaya). Additionally, the states of Manipur, Tripura, Arunachal Pradesh, Mizoram, Nagaland, and the Ladakh region are also covered under this exemption.

The exemption, however, is not valid for certain incomes. Rental income from immovable property situated outside the stated areas and income from any business activity conducted