Deductions

Deductions are made from gross total income and the balance if any, remaining after deduction is called total income. Deductions are allowed under section 8OC to 8OU.deductios are allowed in respect of payments, investment and in respect of certain income. Aggregate amount of deductions shall not exceed gross total income. However, no deductions are allowed against lotteries, short term capital gains specified in section 111A and long term capital gain.