Deductions

We introduced ourselves to Deductions, and the fact that the Gross Income is not always on which we  get taxed, and that some wise or planned payments or incomes give us Deductions.

We aggregate all information and documents on Deductions, and sum of all deductions (categorywise) we are entitled to

The payment side These are investment related  for instance tax saving instruments, mediclaim, education loans interest and donations. The income side These are earning related  for instance on account of interest on savings and deposits.

Basics 1- I can’t have my Deductions exceed the Gross Total Income. I can’t get negative income just due to doing an extra spend or payment when I don’t have enough income. Basics 2- Deductions often have a cap under their category Basics 3- Some deductions have a cap related to ross Total Income Basics

Not all incomes are worthy of getting the benefit of deductions. Incomes in the nature of Capital Gains, Winnings from lotteries and horse races are taxed at defined rates, and I don’t benefit of the wisely planned payments or wisely planned incomes against these kind of incomes.

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

Deductions-An Introduction Objective:The objective of this module is to introduce me to Deductions in Income Tax. We will go about in this manner.What’s a Deduction Are Deductions available against all Incomes Are there any limits on Deductions What are varieties of Deductions How do we go about Deductions Conclusion