Tax Free Income: Employed people, people doing business and people earning money in any way file income tax returns every year. In this time, most of the people try to save tax by any means. For this, different types of investments and deductions are also taken into account. But very few people know that the Income Tax Act also includes some incomes on which the government does not collect any tax.

So here we tell you 10 such sources of income from which you will earn and you will not get tax on them. However, for this you will have to follow some conditions.

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scholarship
Scholarships received from the government or from any private institution for studies are also completely tax free. This exemption from the government is for students of all ages.

farming income
In India, there is no tax of any kind on the income earned from farming i.e. agricultural land. This includes income from selling crops, rent for fertile land for farming and any kind of income related to farming.

gratuity
Gratuity received by government employees after retirement is also completely tax free. However, this is not the case for private sector employees, they can get some relaxation on gratuity up to Rs 20 lakh.

leave encasement
The leave encashment received by government employees at the time of retirement is also completely tax free. However, in this also private employees can get a maximum rebate of up to Rs 25 lakh.

On maturity of LIC policy
If you have taken a LIC policy and it has matured, then you will not be charged any tax on withdrawing it. However, for this also you will have to follow some conditions, if those conditions are fulfilled then no tax will be levied.

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Amount received from HUF
If a Hindu Undivided Family has already paid tax on its income, then the amount received by its members is not taxed again. We can also see it as joint family system, this is for the family which takes care of its ancestral property together.

Share of profits from partnership firm or LLP
If you are a partner in a firm or you have received profits through LLP, then there will be no tax on that also. Because the firm has already paid tax on that income. However, tax has to be paid on salary, commission or interest.

interest from certain investments
If you invest in any scheme like Sukanya Samriddhi Yojana, PPF, some tax-free bonds and interest from NRI account can be tax free. For this it is necessary to follow the related rules.

In withdrawing PF
If you are withdrawing PF amount then it is also tax free. If you have been employed through a recognized institution for five consecutive years, then no tax will be charged on your PF withdrawal. However, if you have not completed five years in the same institution then you may be taxed.

Gifts and inheritance from relatives
If you receive a wedding gift from a close relative or friend or inherit property, there is no tax on it. However, the condition is that the value of any gift received from non-relatives should not exceed Rs 50 thousand. If the price goes above this, it will come under the ambit of tax.

Withholding Tax: Amid rising inflation in India, the government and RBI are planning to promote foreign investment in the country. For this, the government is preparing to make changes in the withholding tax by simplifying the tax system. If reports are to be believed, the government is planning to end it. If this happens, investors, companies and those earning money from abroad can directly benefit from it.

Government’s concern regarding withholding tax
According to the report of The Indian Express, discussions have been going on for the last few weeks to abolish withholding tax. Policy makers want to take these steps to save foreign exchange reserves and keep foreign accounts safe amid the ongoing tension in the Middle East. The government and RBI are worried because foreign exchange reserves are declining rapidly and there is also selling by foreign investors. India’s foreign exchange reserves have decreased by about $38 billion in the last two months.

So far in the year 2026, foreign portfolio investors have withdrawn about $22.5 billion from Indian markets. A huge weakness has also been seen in the rupee. Since the start of the war, the rupee has fallen by about 5% against the dollar. In such a situation, the government is justified in worrying.

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What is withholding tax?
Withholding tax is tax that is deducted before any payment is made. Like TDS on bank interest, tax deduction on earnings from abroad and tax on dividend or royalty payments. This is called withholding tax. Which in simple language means that the government deducts its share before getting the money. The government wants to end it so that the tax system can be simplified, foreign investment can be increased, the cost of doing business can be reduced and companies and investors can get more cash.

Who will benefit?

• Foreign investors will benefit from this step of the government. If tax cuts are reduced or eliminated, investing in India will become more attractive.
• Companies will immediately be left with more money, which will enable them to invest and expand.
• Due to reduction in TDS, the amount received in hand can increase and the hassle of refund will be reduced.
• Startups and IT sectors that take payments from abroad can get relief from tax cuts.
• Not only this, but common people will also have to reduce the wait for tax refund.
• The amount received on investment may increase.
• The tax deducted immediately on bank interest or dividend may be reduced.

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Let us tell you that at present the government has not taken any decision on this, but at present both the government and RBI are considering it. Only after the final decision comes, it will be clear which sectors and people will get complete relief.

Budget 2026 is around the corner and the insurance industry has placed a list of its important demands before the government. The industry says that the tax benefits available on health and life insurance should be increased according to the current inflation and rising medical costs. With this, people will not be limited to just basic cover, but will choose better and comprehensive insurance plans. Experts have demanded to increase the limits of Section 80D and 80C, and have also pointed out the need to give tax deductions on insurance in the new tax regime. Apart from this, there is a demand to remove the problems related to GST Input Tax Credit, so that the cost of insurers is reduced and its benefits reach the customers in the form of lower premiums. If these suggestions are included in Budget 2026, then insurance will become more affordable and health, life and retirement security will also be strengthened.