Jan 29, 2024, 09:28 PM IST
Tax Deduction: It simply means that claims made to reduce your taxable income, which arises from various investments and expenses incurred by taxpayer.
Rebate: Simply put, it is a refund on taxes when the tax liability is less than the taxes the taxpayer has paid.
Tax surcharge: It is an additional charge that you need to pay on income tax.
Cess on tax: It is a form of tax levied by the govt on tax with specific purposes till time the govt gets enough money for that purpose.
New Tax Regime: Introduced in 2022, the new tax regime with seven slabs and concessional rates became the default in the financial year 2023-24.
Old Tax Regime: The old tax regime, replaced by the new in 2023-24, had four slabs with a highest tax rate of 30 per cent for incomes above Rs 10 lakh.
TDS: Is a way to collect tax at the source of income, just like banks deducting tax when transferring interest income.
Tax Saving Instruments: Claim deductions in income tax with instruments like PPF, NSC, and NPS.