Income tax terminologies

Let's learn some basic tax terminologies -

Exempted Income - The part of your income that is never liable for income tax is known as an exemption. Like income from agriculture sources, etc.

Deductions - From your gross income, the government provides you some benefits in tax if you do certain expenses. Like contribution in NPS, PPF, etc.

Please note that exempted income was never part of your taxable income. And deductions are the tax benefit that you receive if you do specified investments and expenditures.

Like agricultural income never became part of your income so it is exempted. But the premium paid for medical insurance can be considered for deductions irrespective of from which source you earned this money.

Net Taxable Income - When we subtract the exempted income and deductions both from our gross income then we get net taxable income.

Redeem - From the net taxable income, the government sometimes provides us relief to reduce our total taxable income that is known as redeem.
CESS - The government levies additional tax on the income tax of the public to collect money for some special purposes like development in the health or education sector etc.

Surcharge - It is an additional charge on the tax almost similar to CESS for high-income category people(50 Lakh Plus). Government can spend a surcharge for any purpose but it can spend CESS for specific purposes only.

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@bhavy