Taxable Income & Deductible Allowances

Question 1

What is difference between Total income and Taxable Income

Answer 1

Total income=5 heads + exempt income

Taxable income= Total income - exempt-P1 IInd schedule (reduction in income) - deductible allowance

Question 2

Allowed deductions vs Deductible Allowances

Answer 2

Deductible Allowance - 
1. Charged against total income 
2. 5 No.s 
Zakat
WPPF
WWF
Housing loan
Educational expenses

3. Can not result into loss

vs Deductions

1. are expenses charged against specific head (5 head of income)
2. Described for each head separately
3. Can result into tax loss