What are Deductions and Net Total Income with Example

Transcript

What are Deductions Under Chapter VIA Certain Expenses Reduced From Gross Total income to Arrive at Net Total income Example Life Insurance (80C) Medical Insurance (80D) Particulars Amt Income from Salaries Income from House Property Profits and Gains of Business and Profession Income from Capital Gains xx Income from Other Sources Gross Total Income Less Deductions under Chapter VIA Net Total Income Tax on Net total Income xx xx xx xx xx xx xx xx xx Suppose a person has Taxable Salary Income of 500000 (after Standard Deduction) and Interest Income of 20000 He has invested 50000 in Life Insurance for which deduction is available in Income Tax What is his Gross Total Income and Net Total Income Particulars Amt Income from Salaries Income from House Property Profits and Gains of Business and Profession Income from Capital Gains 500000 Income from Other Sources Gross Total Income Less Deductions under Chapter VIA Net Total Income 20000 520000 50000 470000