Deductions are benefits I am entitled to due to some wise direction payments or wisely got incomes. Deductions entitle me to get some reduction from my income, or the Gross Total Income we just discussed. The effect is that my income that’s in the tax box reduces, and I end up paying lesser tax due to the wise decisions I made. Deductions are encouragements to expend or earn in desired directions, which are rewarded in the form of getting a ‘minus’ from income though I have earned the incomes and thus ‘reducing’ taxes on me.
