These deductions are of two types:—
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Deductions on account of certain payments and investments covered under sections 80C to 80GGC.
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Deductions on account of certain incomes which are already included under Gross Total Income covered under sections 80-IA to 80U.
The income arrived at, after claiming the above deductions from Gross Total Income, is known as Total Income. It may also be called Taxable Income. The Total Income, thus calculated, should be rounded off to the nearest Rs. 10.
The aggregate of income computed under each head, after giving effect to the provisions for clubbing of income and set off of losses, is known as "Gross Total Income". In computing the total income of an assessee, certain deductions are permissible under sections 80C to 80U from Gross Total Income.
These deductions are however not allowed from the following incomes although these incomes are part of Gross Total Income:
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Long-term capital gains.
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Short-term capital gain on transfer of equity shares and units of equity oriented fund through a recognised stock exchange i.e. short-term capital gain covered under section 111A.
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Winnings of lotteries, races, etc.
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Incomes referred to in sections 115A, 115AB, 115AC, 115ACA, 115AD and 115D.
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