Paying income tax is a legal responsibility for employed people in India. The government has created tax slabs based on different incomes. As the income increases, the tax rate also changes. Many times people find the tax system complicated but it is important to have the right information about it so that a person can use his earnings properly. It is also important to know that tax is not applicable on every job or income. Some special jobs and income sources are exempted from tax.
Tax exemption on government and special posts
There are some government posts in India on which the persons working get the benefit of tax exemption. This exemption is not only a financial relief but also a way to encourage employees. The salary of these posts is controlled by the government and many types of allowances are already fixed in them. Apart from this, employees working on some social and welfare projects are also given tax exemption. Although the clear information on which posts get this exemption is not always public, but it is certain that the government includes some selected roles in this relief.
Tax-free income sources
Not just government positions, some private jobs and income sources are also tax-free. For example, income from agriculture is not taxed. Similarly, some small businesses, scholarships or stipends are also tax-free. Sometimes, the income of volunteers engaged in social service is also not taxable. The purpose of these exemptions is to provide financial support to different sections of society and reduce the tax burden on them. This proves to be a big relief, especially for farmers and students, as it gives them an opportunity to invest a larger part of their income in their work or studies.
Changing nature of tax rules
Tax exemptions and tax rules are not permanent but keep changing from time to time. The government changes it in view of economic conditions and social needs. Therefore, it is important for every person to keep updated information from time to time. Only by understanding the rules of tax exemption, people can plan their finances correctly. If the information is not complete, many times people are not able to avail the exemptions they are entitled to. That is why proper guidance and timely information are very important for financial security and balanced financial life.
