Such income are excluded from Total Income and do not enter into the computation process at all. On the other hand, Chapter VI-A contains deductions from gross Total Income. The important point to be noted here is that if there is no Gross Total Income, then no deductions will be permissible. This Chapter contains deductions in respect of certain payments, deductions in respect of certain Incomes and other deductions.
In short, once the assessee has claimed the benefit of deduction under section 35AD for particular year in respect of a specified business, he cannot claim benefit under Chapter VI-A under the heading "C-Deductions in respect of certain incomes" for the same or any other year and vice versa.
"Gross Total Income" means the Total Income computed in accordance with the provisions of the Act without making any deduction under Chapter-VI-A. "Computed in accordance with the provisions of the Act" implies-
In short, once the assessee has claimed the benefit of deduction under section 35AD for particular year in respect of a specified business, he cannot claim benefit under Chapter VI-A under the heading "C-Deductions in respect of certain incomes" for the same or any other year and vice versa.
"Gross Total Income" means the Total Income computed in accordance with the provisions of the Act without making any deduction under Chapter-VI-A. "Computed in accordance with the provisions of the Act" implies-
- that deductions under appropriate computation section have already been given effect to;
- that income of other persons, if include under section 60 to 64, has been included;
- the intra head and/or inter head loses have been adjusted; and
- that unabsorbed business losses, unabsorbed depreciation etc., have been set-off.
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