Difference between 'Exemption','Deduction','Relief'
This query is : Resolved
10 August 2010
Please Explain the Meaning and Difference between the following terms:
Exemption, Deduction and Relief.
Thank you.
Exemption, Deduction and Relief.
Thank you.
10 August 2010
Exemption: Income not taxable at all
Deduction: Reduction from the taxable Income
Relief:Some relaxation on payment of tax or taxability on Income
Exemption: Income not taxable at all
Deduction: Reduction from the taxable Income
Relief:Some relaxation on payment of tax or taxability on Income
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10 August 2010
good explanation by rameshji
eg
exemption : agricultural income
deduction: section 80C
Relief: section 89(1)
eg
exemption : agricultural income
deduction: section 80C
Relief: section 89(1)
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11 August 2010
Good answer by CMA Ramesh.
Further :
1. Exemtpions are given in the Income Tax Act which are thrust areas of the government (i.e. the areas which the government wishes to boost the particular segments) and/or the earning body is a weaker section of the society and/or requires growth in those activities
2. Deductions are given to boost savings for social welfare and other activities with which the country will be able to get strength in the desired fields.
3. Relief is given when double taxation is there or undue hardship to the taxpayer is there.
These are the major concepts behind the above terms.
Further :
1. Exemtpions are given in the Income Tax Act which are thrust areas of the government (i.e. the areas which the government wishes to boost the particular segments) and/or the earning body is a weaker section of the society and/or requires growth in those activities
2. Deductions are given to boost savings for social welfare and other activities with which the country will be able to get strength in the desired fields.
3. Relief is given when double taxation is there or undue hardship to the taxpayer is there.
These are the major concepts behind the above terms.
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