MANAGEMENT

Detailed explanation-1: -A deduction from the gross estate is allowed for funeral expenses, administration expenses, claims against the estate, certain taxes, and unpaid mortgages or other indebtedness allowable under the local law governing the administration of the decedent’s estate ( Code Sec.

Detailed explanation-2: -For individual wage-earners, some of the most commonly-used deductibles are mortgage interest payments, state and local tax payments, and charitable deductions.

Detailed explanation-3: -The deductions that cannot be claimed during computation of ‘Income from other sources’ are: Personal expenses. Amount mentioned as per Section 40A is not deductible. Taxable amount paid under the category ‘salaries’ and payable outside India taxes have not been paid or deducted at source.

Detailed explanation-4: -For FY 2020-21, standard deduction remains same as the previous year at Rs.50, 000.