{"id":4337,"date":"2024-11-05T06:24:02","date_gmt":"2024-11-05T06:24:02","guid":{"rendered":"https:\/\/1finance.co.in\/magazine\/?post_type=blog&p=4337"},"modified":"2025-10-06T17:20:38","modified_gmt":"2025-10-06T11:50:38","slug":"section-10-of-the-income-tax-act","status":"publish","type":"blog","link":"https:\/\/1finance.co.in\/1f-dashboard\/blog\/section-10-of-the-income-tax-act\/","title":{"rendered":"Section 10 of the Income Tax Act"},"content":{"rendered":"

When we talk about saving on taxes, exemptions can make a world of difference. One section of the Income Tax Act, 1961 plays a key role in charting out these exemptions and making sure that the umbrella is wide enough to cover taxpayers from varying income slabs. Section 10 lists various types of income that are either fully or partially exempt from <\/span>tax. This section helps taxpayers reduce their taxable income legally. However, it is important to note that this benefit can only be redeemed under the old regime and not for the new regime.<\/span><\/p>\n

So, if you want to understand how you can reduce your tax liability legally, you’re in the right place.<\/span><\/p>\n

What is Section 10 of the Income Tax Act?<\/span><\/h2>\n

Section 10<\/a> of the Income Tax Act specifies the various types of incomes that are either fully exempt from tax or qualify for partial exemptions.\u00a0<\/span><\/p>\n

The idea is to provide relief in certain income streams, allowing individuals to minimise their tax burden. These exemptions are not limited to any particular income source or slab but cover a range of eligibility\u2013 starting from salary components like HRA<\/a> and gratuity funds to agricultural income, scholarships, and more. So, if you have verifiable income from any of these categories, you can claim exemptions under any clauses of Section 10 and reduce your taxable income.<\/span><\/p>\n

Common Income Exemptions Under Section 10<\/span><\/h2>\n

There are a variety of sub-clauses under Section 10. These include but are not limited to salary components, profit sharing, and even income from minor family members. To understand which slab you qualify for, it is essential to go through these sections minutely.<\/span><\/p>\n

1. Exemption on Hous<\/span>e Rent Allowance (HRA) \u2013 Section 10(13A)<\/span><\/h2>\n

One of the most widely known exemptions is for HRA<\/a>, which applies specifically to salaried employees receiving HRA as a component of their salary. The exemption is calculated based on:<\/span><\/p>\n