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CMA Intermediate · Direct and Indirect Taxation · Deductions, Rebate and Relief

Under the Income-tax Act, 2025, the aggregate of deductions allowed under Chapter VIII from gross total income of an assessee cannot exceed which of the following?

The aggregate of Chapter deductions cannot exceed the assessee's gross total income. Section 122(2) sets this ceiling, so total income can be reduced to nil but can never become negative because of these deductions.

  1. AThe gross total income of the assesseeCorrect
  2. BThe net agricultural income of the assessee
  3. CThe tax payable on the total income
  4. DFifty per cent of the gross total income

Explanation

Section 122(2) provides that the aggregate amount of deductions under this Chapter shall not, in any case, exceed the gross total income. The cap is on income, not on tax payable or a percentage of income.

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