Income Tax deductions

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  1. Shubhadeep Basak

    Shubhadeep Basak New Member

    I am new to this subject. I am presenting you a case. Please answer whether it's the same as deduction or not.
    I pay Rs. 50,000 under Prime Minister's relief fund(an example). Suppose my income tax for a particular year comes out to be Rs. 1,50,000. Now since I paid 50k towards Prime Minister's relief fund, I pay Rs. 1,00,000 (1,50,000-50,000) as my net income tax. Is my understanding correct ?
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    There are 2 categories of donations - one eligible for 100% deduction and other for 50% deduction.

    Deduction to Prime Minister's relief fund is eligible for 100% deduction and therefore full deduction of Rs. 50,000 would be allowed and your net taxable income would be Rs. 1,00,000
     
    mohd sohaib likes this.
  3. Vivek Mallah

    Vivek Mallah New Member

    Don't Confuse between Taxable Income and Income tax payable. Yes you would get a deduction of 50K but this will decrease your Taxable Income and a percentage of Income tax.
     
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