Exempt income refers to the categories of income that are not subject to income tax under Indian tax law. This type of income plays a significant role for taxpayers, as it can reduce their overall tax burden.

the Government of India reintroduced gift tax provisions to regulate the taxation of gifts received by individuals.

Exempt income pertains to specific types of earnings that are not taxable under the Income Tax Act’s provisions. This differs from deductions under income tax, where deductions are claimed against taxable income.