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.
CA RICHA BADALIA
(Expert)
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).
ACMA Obulirajan R
(Expert)
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..
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
