In continuation of our last post on this topic, please find the list of some more exempted income under the income tax act, 1961 :

• Any death cum – retirement gratuity received from employer upto specified limits.
• Commuted Pension received by an employee upto specified limits.
• Encashment of earned leave after retirement upto specified limits.
• Any compensation received by a workman under the Industrial Disputes Act, 1947 or under any Act or Rules, Orders or Notifications issued there under or under any Standing Orders or under any Award, Contract of Service or otherwise at the time of his retrenchment.
• Any payment made under the Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 and any scheme framed there under except payment made to any assessee to the extent such assessee has been allowed a deduction under the Income Tax Act, 1961 on account of any loss or any damage caused to him by such disaster.
• With retrospective effect from assessment year 2005-06, any amount received or receivable by an individual or his legal heir by way of compensation on account of any disaster will be exempt from tax if such compensation is received from the Central Government, State Government or local authority.
• Any amount by way voluntary retirement schemes (VRS), not exceeding rupees five lakhs. However, this exemption shall not be available w.e.f assessment year 2010-11, if the assessee has already claimed relief.
• An employee, being an individual deriving income in the nature of a perquisite, not provided for by way of specified monetary payment, the tax on such income actually paid by the employer, at the option of the employee, on behalf of such employee, notwithstanding anything contained in section 200 of the Companies Act, 1961.
• Any sum received on life insurance policy, not being a Key man insurance policy, including the sum allocated by way of bonus on such policy.
• Any payment from provident fund.
• The accumulated balance due and becoming payable to an employee participating in a recognized provident fund.
• Any payment from an approved superannuation fund on the death of a beneficiary or in other specified circumstances
• House rent allowance subject to certain limits.

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