India tax‑free income sources and ITR filing guidance

Tax authorities have added a dedicated column to the Income Tax Return (ITR) filing utility for assessment year 2026‑27 to capture "exempt income" – income that is not subject to tax under the Income Tax Act. Ten major sources are listed as tax‑free: agricultural income, share of a Hindu Undivided Family (HUF), profit from a partnership firm or LLP, gifts from close relatives, scholarships, gratuity payments, leave‑encashment amounts, interest from specified government savings schemes (PPF, SSY, EPF, VPF), withdrawals from recognised provident funds after five years of service, and maturity proceeds of life‑insurance policies.

Separately, taxpayers are warned against common filing errors that can trigger notices or refunds delays. Mistakes include selecting the wrong ITR form, failing to disclose capital‑gain earnings or information from Form 26AS, and neglecting e‑verification after submission. The tax department now cross‑checks returns with AIS, Form 26AS and other financial records, so accurate documentation and verification are essential for smooth processing.