Tax is unavoidable, most people think. That’s only half true. In real life, laws governing Indian tax provide a myriad of legal means of earning or saving money you don’t have to pay a penny in tax — if you have the right know-how.
Here are 10 non-tax income streams every Indian must know in 2026 👇
1. Agricultural Income: Farming income is completely tax-free. If you do hold other income, it can impact your income tax rate — but the income itself is exempt.
2. Partnership / LLP Profit: Your share of the profit of a firm or LLP is tax-free, as tax paid by that firm already exists. (Simple rule: profit = tax-free, salary/interest = taxable).
3. Savings Account Interest: Up to ₹10,000 tax-free (Section 80TTA). Up to ₹50,000 for senior citizens (Section 80TTB). Small relief — but good.
4. Public Provident Fund (PPF): PPF enjoys EEE status:
Contribution: tax-free. Interest: tax-free. Maturity: tax-free. A rare triple benefit.
5. Sukanya Samriddhi Yojana: One of the best tax-free investments in India. Perfect for a girl child’s future—and entirely tax-exempt.
6. Scholarships: Education scholarships are wholly exempt under Section 10(16). No tax. No conditions.
7. Voluntary Provident Fund (VPF): Interest on investment is tax-free until it reaches: ₹2.5 lakh/year (with employer PF). ₹5 lakh/year (without employer PF).
8. Life Insurance Maturity: If premium ≤10% of sum assured (Section 10(10D)), tax-free. Depending on the policy issue date, rules are checked prior to buying.
9. Employee Provident Fund (EPF): EPF interest is tax-free as well, but within the same ₹2.5L / ₹5L limits. Still a powerful tool for retirement.
10. Gratuity: Tax-free for eligible employees (lifetime limit) up to ₹20 lakh.
The Bottom Line: Tax planning is not evasion. It’s about education. People who know the law pay less and can grow more — legally.
