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Accounting field

MPR Sanjay Kumar (3118 Points)

31 October 2021

in income tax both exemptions and deductions are same or not????

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CA Aakarsh Jain (CA) (10431 Points)
Replied 31 October 2021

Key Differences Between Deduction and Exemption
Deduction means subtraction i.e. an amount that is eligible to reduce taxable income. Exemption means exclusion, i.e. if certain income is exempt from tax then it will not contribute to the total income of a person.

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MPR Sanjay Kumar (3118 Points)
Replied 31 October 2021

Income Tax some expenses is also coming that are so I have to election in gross salary.. what is expenditure in income tax how to treat that

CA Aakarsh Jain (CA) (10431 Points)
Replied 31 October 2021

Your language is not clear, please tell me again what you want to know

MPR Sanjay Kumar (3118 Points)
Replied 31 October 2021

Sorry sir I am asking about how to treat a expenditure in income taxation...

CA Aakarsh Jain (CA) (10431 Points)
Replied 31 October 2021

It is for an assessee to decide whether expenditure incurred in the course of his business. The expenditure may be incurred voluntarily without any necessity, but it is for the purpose of business or business earn profit after that expenditure, then it will be deductible under provisions of Section 37.