Tax Breaks

  • August 30, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Tax Breaks

Subject – Economy

Context – To make the National Monetisation Pipeline (NMP) a success, the government should give Income Tax breaks to attract retail investors into instruments such as Infrastructure Investment Trusts (InvITs), the NITI Aayog has recommended.

Concept –

  • A tax break is a reduction of a taxpayer’s total liability.
  • If the government gives a tax break to a particular group of people or type of organization, then it reduces the amount of tax that they otherwise would have to pay or changes the tax system in a way that benefits them.
  • There are three types of tax breaks: a tax deduction, a tax credit, and a tax exemption.

economy Tax Breaks