Income tax

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Karishma

Karishma (Querist)

15 August 2013 what is diffrence between deduction and exemption?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

15 August 2013 Deduction is the amount which you can take reduction from the taxable income as per the provision of act

Exemption is the income not at all taxable as per the provision of act

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

15 August 2013 Yes, deductions means reduction from the taxable income and deducts after computation of taxable income and exemptions means not taxable and doesn't included in taxable income.

For example: For F.Y 2012-13 interest from savings bank account upto Rs.10000 is deductable u/s 80TTA, so first it would be added to taxable income under Income from other sources and then later deducted u/s 80TTA at Chapter VIA Deductions.

As well as agricultural income is exempted income, so it doesn't included in taxable income.

OM SAI SRI SAI JAI JAI SAI

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CA Mukesh Jain S

CA Mukesh Jain S (Expert)

15 August 2013 Exemption means which is not taxable & hence does not fall under any head of income.
Deduction is given after the computation of income from all heads.

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Karishma

Karishma (Querist)

16 August 2013 what is the treatment of ground rent paid to DDA ? is there is no laibility of tds on it ,if the amount is 5,00,000 or more

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