Although there is a very thin line of difference in tax free
and non-taxable, both of them are assumed to be similar when it
comes to income or tax computation.
Tax free is when tax is not required to be paid on goods or
securities or those are exempt from payment of tax.
Example - tax free bonds, tax free earnings from securities
etc.
Whereas, when income or assets are referred on which tax is not
to be paid, such income or asset is called as not taxable.
Retirement Benefits, ex-gratia payments, export profits upto
six years etc.