Tag Archives: #TaxRefundExplained

What is an income tax refund?

Income tax refund An income tax refund is provided by the government to taxpayers who have paid more in taxes than their actual tax liability. This typically occurs when taxpayers overpay their taxes through tax withholding or estimated tax payments. The refund amount is calculated by subtracting the actual tax liability from the total taxes… Read More »

What is a tax exemption?

Tax exemption

Tax exemption   A tax exemption refers to the exclusion of certain income, investments, or expenses from being subject to taxes. Governments grant tax exemptions to encourage specific activities or provide benefits to particular groups of taxpayers. For instance, in India, under Section 80TTA of the Income Tax Act, the interest earned on a savings… Read More »