Exemptions exclude specific income or salary components from tax entirely — different from deductions, which reduce your total taxable income.
| Exemption | What it covers |
|---|---|
| HRA | Portion of House Rent Allowance based on rent paid, salary, and city — see our HRA Calculator |
| LTA | Travel fare for you and family, twice in a 4-year block — see our LTA Calculator |
| Gratuity | Up to ₹20,00,000 tax-free — see our Gratuity Calculator |
| Leave encashment | Up to ₹25,00,000 on retirement (non-government employees) |
| Agricultural income | Fully exempt from income tax (though it can affect your slab via "partial integration") |
| Gifts | Up to ₹50,000/year from non-relatives is exempt; gifts from specified relatives are fully exempt |
| Maturity proceeds | Life insurance maturity amounts, subject to conditions on premium-to-cover ratio |
Most of these exemptions — HRA and LTA in particular — are not available under the New Regime. If these apply significantly to you, it's worth comparing both regimes before choosing. See our Old vs New Regime guide.
See which regime works out cheaper for your actual numbers.
Use the Income Tax Calculator →This is general educational content. Exemption eligibility depends on individual circumstances — verify with a CA.