Budget 2026: Master Tax Exemption, Deduction, Rebate to Slash Your Tax Bill
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Moneycontrol•01-02-2026, 16:31
Budget 2026: Master Tax Exemption, Deduction, Rebate to Slash Your Tax Bill
- •Tax exemptions exclude specific income sources (e.g., agricultural income, HRA) from taxable income before calculation.
- •Tax deductions are subtracted from gross total income for certain investments and expenditures (e.g., Section 80C, 80D).
- •Tax rebates reduce the actual tax payable after tax computation, like Section 87A for incomes below a threshold.
- •Understanding the distinct roles of exemptions, deductions, and rebates is crucial for effective tax planning.
- •These three mechanisms work sequentially (exemption → deduction → rebate) to lower your final tax liability.
Why It Matters: Differentiate tax exemptions, deductions, and rebates to strategically reduce your tax liability effectively.
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