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.
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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