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Direct Taxes

Which of the ...

Question

Which of the following incomes is exempted from income tax?

A

Salaries or profits from work

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B

Interest earned from various investments

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C

Rent obtained from property owned

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D

Income from agriculture

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Solution

The correct option is D Income from agriculture
Direct taxes are classified into income taxes and corporate taxes. The government imposes taxes on the income of individuals if it goes beyond a certain limit. This is called income tax. It includes income from salary, rent received from a property let out, sale of property, and interest earned from various investments. However, agricultural income is exempt from tax, and hence used by people to evade taxes.

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Standard IX Economics

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