Tax incentives are eligible to be claimed from taxable income. The incentives can be based on income, investment, or expenditure. Some of them are detailed below:
- Income-based incentives:
- Tax holiday of profits of business engaged in infrastructure development or development of SEZ.
- Investment-based incentives:
- Investment in certain mutual funds, infrastructure bonds, life insurance, bank fixed deposits, investment in government securities, etc.
- Expense or payment-based incentives:
- Certain payments, like medical insurance premium, donations to approved trusts or organisations, etc., are eligible for tax incentives.