Exempt Income

Exempt Income

Any income that is not subject to taxation. Examples of exempt income in the United States include income from municipal bonds, some retirement contributions, interest paid on mortgages, and the personal exemption, among other things. See also: Earned Income Tax Credit.
References in periodicals archive ?
The NEOS have introduced a motion for a resolution in mid-May , which aims to exempt income shares of up to 1,000 from the Chamber of Labor contributions.
The distinction between zero-rated and exempt income is an important concept in VAT.
On the table are amendments to small claims rules that would require greater scrutiny of payment orders to ensure exempt income such as disability benefits does not become subject to collection.
The finance minister, according to sources, also proposed halving the current limit of exempt income of Rs.
A portion must be allocated to exempt income and, to that extent, not deducted.
This exemption was to expire on June 30, 2019 but through Finance Act 2018, this benefit has been extended till June 30th, 2025; the IT Freelancer(s) has just to file his/her annual income tax return every year, reporting his total tax exempt income through FBR's online tax filing system - Iris (this facility is termed G2C - Government to Citizen).
The Tax Court ruled that the General Allotment Act as well as two treaties signed with Native American nations generations ago did not exempt income earned from selling gravel mined from Seneca Nation land.
Many treaties go further and exempt income on investments held by a tax-exempt retirement vehicle from tax in the other country.
Generally, banks tend to recover only a small fraction of the total VAT incurred on expenditure as a result of their exempt income, as it can be very difficult for banks to directly attribute their costs to specific revenue streams.
As practices receive a mixture of VATable and exempt income, there is a restriction on the amount of VAT that they can claim.
The panel has also suggested amendment in the provision related to disallowance of expenditure incurred to earn exempt income. It says 15 per cent tax litigation relates to determination of expenditure related to exempt income and so there is a need to clarify and simplify some provisions of this rule.
Under new provisions, individuals having exempt income without any ceiling (other than agricultural income exceeding Rs 5,000) can now file Form ITR-1 (Sahaj).