Exempt Income is underlined bold but what constitutes "Exempt Income" is not clear even till now. If PPF interest accrual every year is falling in that category? Some have said that PPF interest credited to account is not Exempt Income. Most ITR forms filing instructions fail to cover this part and no CBDT notification in this regard.
Exempt income simply means that those income which does not form part of total income i.e all income which are exempted by virtue of sec10 under various clauses.