Tax rebate is a refund on taxes when the tax liability is less than the taxes the individual has paid. Taxpayers usually get a refund on their income tax if they have paid more than what they owe. The tax refund money is given back at the end of the financial year.
To calculate rebate, first add up income from all sources like salary, house rent, capital gains, income from other sources, etc. This is the total gross income. Now from the gross income, apply deductions under Chapter VIA of Income Tax Act, 1961.
