Vidya Devaraj
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Prassu_333
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Hi... what is the difference between deductions , exemptions & rebates in income tax??
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These all words deductions,exemptions and rebates in income tax in my opinion have the same meaning and that is generly say discount.which is given by the income tax act. like in any allowance if your allowance cross the exemption limit then that allowance taxable with the difference amt.i.g.-your allowance 100 rs. exemption limit 50 rs. then your taxable allowance 50 rs.(100-50). so you have got only 50 rs. exemption.rebate and deductions.thats it.
Exemptions: Exempt income means income which is not chargeable to tax and if there is an income which is in part exempt and in part non exempt, then the exempt income shall be substracted from the gross value, ie taxable as well as non taxable. Examples of exempt income are dividend income, HRA (to a certain extent), share of profit from a partnership firms etc (For further details Section 10 of the Act can be referred to.
Deductions: deductions under the Income Tax Act are made after arriving at the gross total income like the deduction under Chapter VI-A (Section 80C is a fine example).
Rebates: Rebates are provided on the tax leviable on the Income as reduced by Exempt Income and Deductions if any.
Exemptions,deductions and rebates are not the same as one of the replies suggests.The implications are totally different.
For example,total income up to Rs.1.50 lakhs is exempted from IT for F.Y.2008-09 means you need not pay any IT for your income if it is less than this exemption limit.
Deductions means all amounts you are allowed to deduct from your income to arrive at the taxable incomed.For example,investments made in Insurance,Mutual Funds etc.up to Rs.1.00 lakhs per annum can be deducted from your income.
Rebates are amounts deducted from the tax dues worked out.
I hope it is clear.
Hi this is prasanna kumar
i want 2 know how u calculate the tds on the name of contractor and sub contractor
plz inform me
prasanna kumar
Hi this is prasanna kumar
i want 2 know how u calculate the tds on the name of contractor and sub contractor
plz inform me
prasanna kumar
If any contract value exceeds Rs 20,000 or Rs. 50,000 in the aggregate during the financial year, you must deduct TDS at 2.06% of the payment if payment to contractor (for contracts other than advertising contracts) and 1.03% for the advertising contracts and 1.03% for sub-contractor. (Exception: Individuals and HUF whose sales/gross receipts in business is less than Rs 40 lacs or professional receipts is less than Rs 10 lac are not required to deduct the TDS). Surcharge rate is 0.2% for contractor (other than advertising contracts) and 0.1% for sub-contractor and advertising contracts.
exemptions mean that a certain item is not to be considered for tax purpose...but deductions means that we have to consider it for calculation of income for tax purpose..and then later on deduct the part which qualifies for deductions.
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