New Delhi, Sept. 11 -- With the tax return deadline looming, understanding key terms is essential. Tax rebates, exemptions, and deductions play a role in determining tax liabilities. Rebates apply up to a certain income level, while exemptions exclude specific incomes, and deductions reduce taxable income.

Here's a detailed guide explaining tax rebate, deduction and exemption -

A tax rebate is tax relief provided to individuals who earn up to a certain income level, according to Section 87A of the Income Tax Act. It is claimed from the total tax payable. A tax rebate is not deducted from income. Hence, it reduces the total tax payable by deducting a fixed amount from the calculated tax.

"Tax rebate is direct relief given on the final t...