What is Income Tax Exemption in India
                     What is Income Tax Exemption 
in India?
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.
How does Income Tax Exemption 
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.
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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-india-how-does-it-work/