Tax-Free Income: You must file your ITR every year, and during this time, people look for ways to save taxes. So, here we tell you about 10 sources of income that are tax-free.

Tax-Free Income: Employed individuals, business owners, and those earning income through any means file their income tax returns every year. During this time, most people try to save taxes by any means necessary. Various investments and deductions are used to achieve this. However, few people know that the Income Tax Act includes certain incomes on which the government does not levy any tax.

So, here are 10 sources of income that will generate income and be tax-free. However, you'll need to comply with certain conditions.

Scholarships
for education, whether from the government or a private institution, are also completely tax-free. This exemption is available to students of all ages.

Agricultural Income:
In India, income from agriculture, or agricultural land, is not taxed. This includes income from the sale of crops, rent for cultivated land, and any other income related to farming.

Gratuity:
The gratuity received by government employees upon retirement is also completely tax-free. However, this is not the case for private sector employees, who may be eligible for some exemption on gratuity up to Rs 20 lakh.

Leave encashment:
The leave encashment received by government employees at the time of retirement is also completely tax-free. However, private employees can also avail a maximum exemption of up to Rs 25 lakh.

If you have purchased an LIC policy
and it has matured, you won't be taxed upon withdrawing it. However, you must comply with certain conditions; if those conditions are met, no tax will be levied.

If the Hindu Undivided Family ( HUF) has already paid income tax on its income, the amount received by its members is not taxed again. This can also be seen as a joint family system, for families who jointly manage their ancestral property.

Share of profits from a partnership firm or LLP:
If you are a partner in a firm or have earned profits through an LLP, those profits are not taxable because the firm has already paid taxes on those incomes. However, salary, commission, or interest are taxable.

Interest earned from certain investments,
such as the Sukanya Samriddhi Yojana (SSY), PPF (Private Provident Fund), certain tax-free bonds, and NRI accounts, may be tax-free. This requires compliance with the relevant regulations.

Withdrawing PF
funds is tax-free. If you've been employed by a recognized organization for five consecutive years, your PF withdrawals won't be taxable. However, if you haven't completed five years with the same organization, you may be taxed.

Gifts and inheritances from relatives:
If you receive a wedding gift from a close relative or friend, or if you inherit property, there's no tax on it. However, the condition is that any gift from a non-relative must not exceed ₹50,000. Any gift above this amount will be taxable.