India tax exampt income 2025

Agricultural Income:

• Income derived from agricultural activities in India is generally exempt from income tax.  
• Specific conditions apply to determine what constitutes agricultural income.

Interest Income (Specific Cases):

• Interest income from certain government securities or bonds may be exempt.
• Interest earned on specific accounts held by non-resident Indians (NRIs) may be exempt, subject to conditions.

Dividends (Partial Exemption):

• While dividends are now taxable in the hands of the shareholders, certain dividends may be exempt based on Double Taxation Avoidance Agreements (DTAAs).  

Capital Gains (Specific Cases):

• Capital gains arising from the transfer of specific assets may be exempt.
• Exemptions can apply to long-term capital gains from the sale of equity shares under specific conditions.
• Capital gains arising from the transfer of units of specific mutual funds may be exempt.

Income of Certain Organizations:

• ncome received by specific charitable or religious trusts and institutions may be exempt, subject to compliance with relevant provisions.  
• Income of certain scientific research associations may be exempt.  

Income Exempt Under DTAAs:

• Income may be exempt based on specific provisions within Double Taxation Avoidance Agreements (DTAAs) that India has with other countries.   The applicability of DTAA exemptions depends on the individual's or entity's residency status and the nature of the income.  

Remittance of Foreign Currency:

• Remittances of foreign currency into India by non resident Indians, under certain conditions, is not taxable.

Income from specific infrastructure projects:

• Income from specific infrastructure projects, may be exempt.  

Income from specific special economic zones (SEZ):

• Income from specific special economic zones, may be exempt, for a limited time.