PPT: Deductions from Gross Total Income | Taxation for CA Intermediate PDF Download

 Page 1


Deductions from 
Gross Total Income
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Deductions from 
Gross Total Income
Page 3


Deductions from 
Gross Total Income
What is a deduction?
? Deductions are just business expenses that you
claim on your taxes.
? Claiming deductions saves your money by reducing
your taxable income so you can pay less in taxes
to the government.
? The best part is that you are probably already
paying for these expenses, you just need the right
information to turn them into valid tax deductions.
Page 4


Deductions from 
Gross Total Income
What is a deduction?
? Deductions are just business expenses that you
claim on your taxes.
? Claiming deductions saves your money by reducing
your taxable income so you can pay less in taxes
to the government.
? The best part is that you are probably already
paying for these expenses, you just need the right
information to turn them into valid tax deductions.
Introduction
? Provided by the Income Tax Act, 1961.
? Contained in Chapter VI – A and in the form of 
deductions from section 80-C to 80-U.
? They are the permissible amount by which the 
gross total income is reduced to arrive at the 
total income liable to tax.
? They are intended to act as incentive to the 
assessee for achieving certain economic 
objectives.
Page 5


Deductions from 
Gross Total Income
What is a deduction?
? Deductions are just business expenses that you
claim on your taxes.
? Claiming deductions saves your money by reducing
your taxable income so you can pay less in taxes
to the government.
? The best part is that you are probably already
paying for these expenses, you just need the right
information to turn them into valid tax deductions.
Introduction
? Provided by the Income Tax Act, 1961.
? Contained in Chapter VI – A and in the form of 
deductions from section 80-C to 80-U.
? They are the permissible amount by which the 
gross total income is reduced to arrive at the 
total income liable to tax.
? They are intended to act as incentive to the 
assessee for achieving certain economic 
objectives.
Basic Rules
Rule 1
? The aggregate amount of deductions under
sections 80-C to 80-U cannot exceed gross
total income.
Rule 2
? These deductions are to be allowed only if the 
assessee claims these and gives the proof of 
such investments/ expenditure/ income.