Deduction and exemption
This query is : Resolved
18 October 2011
Respected experts,
what is the difference between deduction and exemption. I did not understand this by reading ICAI module. please help me.
what is the difference between deduction and exemption. I did not understand this by reading ICAI module. please help me.
18 October 2011
Exemption-There are certain incomes which are not chargeable to tax i.e. they are exempted from tax.For eg Interest on PPF is an exempted income.We are not required to pay tax on it.
Deduction-From GTI we can claim deduction under various section like 80C,80D etc.We can claim deduction under these sections subject to fulfillment of certain conditions and limits.So we have to pay tax on (GTI-Deduction allowed).
Deduction-From GTI we can claim deduction under various section like 80C,80D etc.We can claim deduction under these sections subject to fulfillment of certain conditions and limits.So we have to pay tax on (GTI-Deduction allowed).
18 October 2011
Well explained...
In simple
Exemption >>>> No tax liability
Deduction >>>> reduce the tax liability/nil liability..
In simple
Exemption >>>> No tax liability
Deduction >>>> reduce the tax liability/nil liability..
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