Deduction

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Deduction

That which is deducted; the part taken away; abatement; as in deductions from gross income in arriving at net income for tax purposes.

In Civil Law, a portion or thing that an heir has a right to take from the mass of the succession before any partition takes place.

A contribution to a charity can be used as a deduction to reduce income for Income Tax purposes if the taxpayer meets the requirements imposed by law.

deduction

n. an expenditure which an income tax payer may subtract from gross (total) income to determine taxable income. This is not the same as an exemption which is for one's marital status, age over 65, blindness and number of dependents (e.g. children), which, added together, reduce the tax owed.

References in periodicals archive ?
Before suspension, on each calling card of Rs100, withholding tax (income tax) of 12.5pc was deducted under Section 236 of the Income Tax Ordinance, 2001, by the Federal Board of Revenue, whereas 17pc excise duty was charged from users in Islamabad Capital Territory.
A factory worker, who declined to be named, said: 'My wages were not deducted for the two days when I went to vote.
The CM said he was told by his finance team that the FBR had also deducted various other amounts from the PCF, in respect of claims over different departments of Sindh government with respect to sales tax.
He said that Article 121(d) of the constitution specifies that the expenditure can only be made from PCF for any sum required to satisfy any judgment, decree or award against the province by any court or tribunal.The chief minister also decided to write a letter to the prime minister with the request to direct Ministry of Finance to refund the amount of Rs7.054 billion to Sindh government with respect to withholding tax which has been unconstitutionally deducted by FBR from PCF.
3) Fees deducted from an IRA are not tax deductible on IRS Form 1040; Schedule A (i.e., itemized deductions).
Current Division 3 Standings: 1st Dubliners 22/96 (3pts deducted); 2nd Red Lion B 23/94; 3rd Middlebeck Bar 22/94; 4th MCC 22/90; 5th British Legion Club 23/86; 6th Falcon 22/85 (5pts deducted); 7th Highland Lad 22/83; 8th Green Tree 23/77 (2pts deducted); 9th Farm Hotel 22/72 (3pts deducted); 10th Endeavour 2 23/71; 11th MiddlebeckClub 21/62; 12th Riley'sTeeside 23/56; 13th Old Vic 21/53 (3pts deducted)
How many thousands have received bills with no winter rebate deducted? British Gas maybe hoped that by sending these letters out before the current bills, maybe older, more frail, poorly-sighted customers would not realise they were entitled to their winter rebate off this current bill?
"* Defendants have improperly deducted arbitrarily accrued costs not permitted in calculating Gross Receipts;
Otherwise, they would strain to capitalize all sorts of expenses that historically have been currently deducted. One of the reasons that TEI filed an amicus brief in INDOPCO back in 1991 was to express concern over the possible breadth of the Third Circuit's decision in the case: "If the Third Circuit's definition of a capital expenditure as any expenditure yielding income substantially beyond the taxable year gains currency," the Institute wrote, "then the manifest deductibility of untold ordinary and necessary expenses will be jeopardized.
If mandatorily redeemable preferred stock is treated as an equity instrument, the dividends are not deducted in determining the issuer's net income, although, like all preferred dividends, they are deducted to determine income available for common-stock holders.
Operating costs and carrying charges that are considered to be ordinary and necessary" expenses of managing, maintaining, and conserving forest land may be wholly or partly deducted (expensed) each year as these costs are incurred-provided the woodland activity is done for profit and the expenditures are directly related to the income potential of the property.
A three-judge SC bench headed by Chief Justice of Pakistan Mian Saqib Nisar also ordered the federal and provincial governments as well as the Federal Bureau of Revenue (FBR) to submit comprehensive replies explaining why a number of taxes were being deducted on pre-paid cellular scratch cards.