You can not claim deduction under Chapter VI-A against these Incomes.

Before making investments under Chapter VI-A to reduce your income tax liabilities you need to check that if your income is eligible for the Chapter VI-A deductions or not. In this article, we are discussing a list of few such incomes against which you can not claim Chapter VI-A deductions. In general, the total deduction under chapter VI-A can not exceed your gross total income but that gross income should first exclude the following incomes :- 

1.Short Term Capital Gain (Subject to Securities Transaction Tax):-

• The short term capital gain which is subject to securities transaction tax is taxable at the special rate tax at 15%. under section 111A
• The deduction under Chapter VI-A is not provided against such Income.

2. Long Term Capital Gain under Section 112:-

• Under Section 112 of Income Tax Act, an assesses is required to pay a tax at the rate of 20% or 10% after and before indexation respectively on the capital gained by him on long term capital assets.
• The deduction under Chapter VI-A is not provided against such Income.

3. Long Term Capital Gain under Section 112A:-

• Under Section 112A the assesses are liable to pay a tax at the rate of 10% on the capital gained by him on long term capital assets if the value of gains amounts to be more than Rs. 1,00,000.
• All the securities whether listed or not whether shares, debentures, or units of a business trust are applicable under this section.

4. Income from Lottery/ Puzzle Games/Horse Race/ Gambling:-

• Money received from the winning from lottery/ Puzzle games/ gambling etc is taxable at flat 30%.
• The deduction under Chapter VI-A is not provided against such Income.
• The Benefit of basic exemption limit and income tax slab rate is also not applicable to this income.

5. Dividend Income:-

• One can not claim deduction under Chapter VI A against dividend income.

6. Deemed Income under section 68 & 69 i.e Unexplained Cash/ Investment etc:-

• As per section 115BBE deemed income under section 68, 69 is taxable at the rate of 60% (Plus Surcharge and Penalties).
• The deduction under Chapter VI-A is not provided against such Income.

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[Disclaimer:-This article is being furnished for informational purposes only. We make every effort to use reliable & comprehensive information, but we do not represent that the contents of the article are accurate or complete.]