CA DISA LLB
5452 Points
Joined July 2008
Exemption is generally in the context of an income which is not includible and forming part of your Gross Total Income. Income may be classified as Exempt or Non-exempt Income. Only Non-exempt Income is taken into account to compute GTI and Exempt income is excluded fat the very initial stage.
However, deduction is available to the assessee having income and fulfilling the specific conditions which is a pre-requisite to avail such deduction. Deduction is to be applied if there is Gross Total Income after taking out the exempt income.
A deduction, irrespective of the nature of income may be available to the person based on the other conditions of investment etc while the exemption is available on the nature of income accrued to the assessee and it solely depends upon the nature of income.