5 income sources that are tax-free in India

Gift received from relatives

Gift received from relatives are exempt from tax by virtue of Section 56. The following will be considered as relative for the purpose of claiming such exemption.
 (a) Spouse of the individual;

(b) Brother or sister of the individual;

(c) Brother or sister of the spouse of the individual;

(d) Brother or sister of either of the parents of the individual;

(e) Any lineal ascendant or descendent of the individual;

(f) Any lineal ascendant or descendent of the spouse of the individual;

(g) Spouse of the persons referred to in (b) to (f).

Agricultural income 

Agricultural income is not taxable in the country. However, if you have non-agricultural income too, then while calculating tax on non-agricultural income, your agricultural income will be taken into account for rate purpose. Even if you have only agricultural income, you are advised to maintain some proof of your agricultural earnings/expenses.

Provident fund

Employee Provident Fund (EPF) offers tax-free returns for those employees who have had an active contribution for more than 5 years in his/her job. This is applicable even if the person has changed multiple organisations/employers in those 5 years.

Scholarships

Income earned on scholarship is tax free under sec 56(ii) of the Income Tax Act.

Salary Components

Chunks of your salary component that comes under reimbursements like transport allowance, meal coupons, mobile phone bills, internet bills, books, and periodicals, leave travel allowance, leave travel concession, etc are tax exempted.