The sum on which the government measures tax is referred to as taxable revenue.
This figure covers all earnings but does not include any deductions.
Your wages, as well as other sources of revenue such as interest, rental income, and so on, are all put together.
Subtract Rs 2.5 lakh from that – the first Rs 2.5 lakh is deducted in India.
Other deductions, such as the standard deduction, section 80C investments, HRA deductions, and so forth, are then subtracted from the total income.
The taxable income is all that’s left.
This net income is used to determine the amount of tax you owe.
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