Difference between Tax Deduction vs Tax Exemption vs Tax Rebate

We easily understand terms like income or savings, because they are relatable. But, Tax Exemption, Tax Rebate, and Tax Deductions sound tiring and dull, even though these have the potential to reduce our tax burden.
lets under difference between Tax Exemption, Tax rebate, the Tax deduction
Tax Deduction: In simple word, through income tax deduction your gross taxable income become less and due to this deduction you pay less tax. The standard deduction is the first way of tax deduction.
Tax Exemption: Its meaning is you not need to pay Tax on some component of your income ‘
Tax exemption mainly allows salaried people to reduce their taxable income through different allowances like HRA, Travel allowance, LTA, Children education allowance, gratuity.
Tax Rebate: It is your final deduction or like final bargain after-tax exemption and tax deduction claims on your taxable income.

Published by Nidhi Mehra

I am blogger with 5 years of experience in writing articles and topics related to finance and funds

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