Exclusions

Tax Glossary Definition

Exclusions

In taxation, exclusions represent specific categories of income or transactions that are intentionally left out of the taxable base according to tax legislation. These provisions allow individuals or organizations to avoid paying tax on certain earnings or benefits, typically to support public policy goals such as social welfare or economic growth.

Example: For example, income from employer-funded health insurance plans or some agricultural activities may be excluded from a person’s taxable income, so no tax is owed on those amounts.

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