Explanation : A salaried employee can claim tax rebate under section 88. Amount of tax rebate is 20% of gross qualifying amount (Rs.80000) or Rs. 16000, whichever is lower. If a person invests only in other securities, excluding shares, debentures and units of infrastructure sector; then the maximum rebate is only Rs. 12000 (20% of Rs. 60000). This rebate may be extended upto Rs. 16000 on further investment up to Rs. 20000 in shares and debentures. By investing in shares, debentures and infrastructure units a maximum rebate of Rs. 16000 (i.e. 20% of Rs. 80000) may be claimed. Tax rebate in India is allowed to those individuals whose income falls will in the tax slabs that are modified every eyar modifications in the rebate structure in announce in the union budget of the respective year. ....Read more