difference between deduction and exemption

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  1. ashisharma4008

    ashisharma4008 New Member

    Dear sir,
    I want to know the difference between the terms deduction and exemption with respect to income tax
    And just another doubt whether interest earned on saving bank account is taxable ?
    Thank you
  2. ZED

    ZED Well-Known Member

    We have separate chapter for exemption and deductions.
    The expenditure of an exempted income is not allowed as deduction but expense of an income in respect of which deduction is claimed can be claimed.
    We have separate reporting mechanism for exempted income and income in respect of which deduction is claimed.
    There are some other differences also.

    Yes, saving bank interest is taxable and simultaneously deduction maybe claimed u/s 80TTA upto Rs.10,000 (or actual interest income, whichever is lowed)
    ashisharma4008 likes this.
  3. Parul_Gupta

    Parul_Gupta Active Member

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