CMA Intermediate · Direct and Indirect Taxation · Deductions, Rebate and Relief
Ravi Menon, a resident individual, has gross total income of Rs. 6,00,000 under the Income-tax Act, 2025. He claims Chapter deductions of Rs. 2,10,000 in all, on eligible items. What is his total income, as per the framework of section 122?
Total income is Rs. 3,90,000. Deductions are allowed out of gross total income, and since Rs. 2,10,000 does not exceed the gross total income of Rs. 6,00,000, the whole amount is allowed: 6,00,000 minus 2,10,000.
- ARs. 3,90,000Correct
- BRs. 8,10,000
- CRs. 4,10,000
- DRs. 6,00,000
Explanation
Deductions are allowed from gross total income as per section 122(1). The aggregate deduction of Rs. 2,10,000 is below the gross total income, so no capping is needed. Total income = 6,00,000 - 2,10,000 = Rs. 3,90,000. Adding the deduction gives Rs. 8,10,000, which is the wrong sign.
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