Difference

Deductions are allowed after arriving Gross Total Income ie. after aggregation and set-off. If GTI is zero no deduction would be available. Where as exempted item of income would not form part of Total Income. Exemption is given before aggregation and set-off.

this can be illustrated as below:

X is a co-operative society having business income Rs 5,00,000/- and house property loss Rs3,00,000/-. Its business income is eligible for deduction u/s 80P.

in this case GTI is 5,00,000 + (-) 3,00,000 = 2,00,000

Less; deduction u/s 80P                          = 2,00,000 ( though BI is 5 lakh deduction is limited to GTI available)

             Taxable income                          =   Nil     

If in the above case no deduction u/s 80P is avilable but BI includes exempt income to the tune of Rs 4,00,000

then GTI is (5,00,000 - 4,00,000) + (-) 3,00,000 = (-) 2,00,000 

             Taxable income                          = Nil  ( HP loss 2 lakh will be allowed to carry forward)

Oh! Thaaaaaaaaaaaaaaank you so much Sir!!

It is really helpful to me!!!

Thanks again.

Have a great day ahead.