Above the line & below the line
This query is : Resolved
02 June 2012
Please any one could explain the concept of above the line deductions & below the line adjustments with suitable example...thanks in advance
02 June 2012
In the United States
an above-the-line deduction is a term used to describe those deductions which the Internal Revenue Service allows a taxpayer to subtract from his or her gross income in arriving at "adjusted gross income" for the taxable year. These deductions are set forth in Internal Revenue Code Section 62. A taxpayer's gross income minus his or her above-the-line deductions is equal to the adjusted gross income. Because these deductions are taken before adjusted gross income is calculated, they are termed "above-the-line." Thus, those deductions allowed in computing "taxable income" under section 63 of the IRC are termed "below the line deductions" (thus, adjusted gross income represents "the line"). Above-the-line deductions are considered more valuable to taxpayers than below-the-line deductions.
an above-the-line deduction is a term used to describe those deductions which the Internal Revenue Service allows a taxpayer to subtract from his or her gross income in arriving at "adjusted gross income" for the taxable year. These deductions are set forth in Internal Revenue Code Section 62. A taxpayer's gross income minus his or her above-the-line deductions is equal to the adjusted gross income. Because these deductions are taken before adjusted gross income is calculated, they are termed "above-the-line." Thus, those deductions allowed in computing "taxable income" under section 63 of the IRC are termed "below the line deductions" (thus, adjusted gross income represents "the line"). Above-the-line deductions are considered more valuable to taxpayers than below-the-line deductions.
08 June 2012
Whether above concepts may be found in indian taxation...?
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