Exemption vs Deduction
Abinash Panda (80 Points)
03 June 2022
Can somebody tell me that what is the difference between exemption and deduction ?
5 Replies
CA Aakarsh Jain
(CA)
(10431 Points)
Replied 03 June 2022
Deduction & Exemption are two Synonyms words in first appearance but has vital difference at length in Income Tax Act. Deduction means subtraction of an amount from the SUM of Income which is already have under different heads of Income. Whereas Exemption means the whole income itself is exempt from tax.
Kev Men
(788 Points)
Replied 03 June 2022
In income tax, exemption come under Chapter III - Incomes which do not form part of total income.
Deductions come under Chapter VIA - Deductions to be made while computing total income.
Basically, exemptions are 'income' which should not be considered. Deductions are 'expenses' which are deducted from total income.
Deductions come under Chapter VIA - Deductions to be made while computing total income.
Basically, exemptions are 'income' which should not be considered. Deductions are 'expenses' which are deducted from total income.
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 03 June 2022
You can say Section 10 related are Exemptions
and Section 80C to 80U are Deductions
and Section 80C to 80U are Deductions
sabyasachi mukherjee
(27579 Points)
Replied 04 June 2022
Exemption is it is not included in total income.
exemption is excluded from income.
Sec 10 broadly
deduction there are many sections
sec 10(13A) RULE 2A
exemption is excluded from income.
Sec 10 broadly
deduction there are many sections
sec 10(13A) RULE 2A
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 07 June 2022
Take example :
HRA is part of salary and exemption can be claimed under section 10(13A)
Investments like PPF , Tax Saving FD : These are not form part of salary and these investments are made from savings and deduction can be claimed under section 80C
HRA is part of salary and exemption can be claimed under section 10(13A)
Investments like PPF , Tax Saving FD : These are not form part of salary and these investments are made from savings and deduction can be claimed under section 80C
Recent Topics
- Missing invoice in gst
- GST on consultancy
- Linking adhaar to UAN without employer
- WHETHER ITC REVERSAL TH. GSTR 3B OR DRC03
- Advance Tax For Freelancers
- Is fvu 8.8 version available ?
- Interest and penalty on advance tax shortfall
- Joint Account with 3 legal heirs.......
- TCS adjustment
- GST audit and scrutiny
Related Threads
CAclubindia
