Incomes from which deductions under chapter VI-A are not allowed

Though there are many incomes enlisted in the Income Tax Act, 1961 from which deductions of VI-A are not allowed, but most of these incomes are rarely found in people's Income Tax Returns.

Some of the commonly found incomes from which deductions of VI-A are not allowed are as follows :-

• Short term capital gain of section 111A which are chargeable to tax at the rate of 15%, which comprises of short term capital gains arising from 'transfer of short term capital asset, being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust' which are chargeable to Securities Transaction Tax (STT).

• Long term capital gain of section 112 which are chargeable to tax at the rate of 20% or 10% when indexation is not allowed.

• Casual income which are chargeable under the head 'Income from other sources' such as winnings from lotteries, crossword puzzles, races including horse races, card games, etc.

So even after deductions of chapter VI-A from incomes other than above, credit is lying under various sections of chapter VI-A such as 80C, 80CCC, 80CCD, 80G, etc. then deductions can not be made from the incomes of above sources.