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.