EXEMPTION & DEDUCTION

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the distinction between income tax exemptions and deductions. It explains that while income can be exempted, certain expenditures and investments are eligible for deductions. Specifically, profession tax (PTRC/PTEC) is deductible under Section 16(iii) of the Income Tax Act 1961, and EPF/ESI contributions are deductible under Section 80C.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
Follow

30 July 2020 Respected Sirs,
Rds to all of you

PTRC , PTEC, EPF AND ESIC ALL THERE ARE EXEMPTIONS OR DEDUCTIONS AND AS UNDER WHICH SECTION OF INCOME TAX ?

Please guide me and oblige.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

30 July 2020 These are seductions.
According to Section 16 (iii) of the Income Tax Act 1961, the profession tax paid by an employee is allowed as a deduction from his/her gross salary income.
EPF and ESI deduction allowed under section 80C.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
Follow

01 August 2020 Sir basically what is the difference between exemption and deduction ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

01 August 2020 Incomes were exempted and expenditure and investment were deducted

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
Follow

01 August 2020 Raman Sir
Thanks for making me understand

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now