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<br>The income tax exemption refers to the portion of an individual's income that is not subject to taxation. Every individual is entitled to a basic exemption limit up to which their income is not taxable. Read our complete blog to know all about the income tax exemption in India and its work.<br>
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In India, income tax exemption refers to the portion of an individual's income that is not subject to taxation. The Indian Income Tax Act, 1961, provides various provisions under which certain incomes or amounts are exempt from income tax. These exemptions are designed to reduce the tax burden on individuals and encourage savings and investments in specific sectors of the economy. Every individual is entitled to a basic exemption limit up to which their income is not taxable. Read our complete blog to know all about the income tax exemption in India and its work.
Income tax exemption works by reducing the taxable income of an individual, which in turn reduces the amount of tax that the individual is liable to pay to the government. Essentially, income tax exemption allows individuals to deduct certain amounts from their total income, which are not subject to taxation. This is done through various provisions and sections of the Income Tax Act, 1961, in India. How does Income Tax Exemption work
Here's how income tax exemption works in a simplified manner: • Determine Total Income • Apply Basic Exemption Limit • Deduct Investments and Expenses Under Section 80C, 80D, etc. • Calculate Taxable Income • Calculate and Pay Income Tax
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