A tax rebate is a provision that reduces your final tax liability, sometimes down to zero, if your total taxable income falls below a certain specified threshold. In India, the most well-known example is the rebate under Section 87A, which effectively makes tax liability nil for individuals whose taxable income is below a government-specified limit, which differs between the old and new tax regimes and is revised periodically.
It's important not to confuse a tax rebate with a deduction — a deduction reduces your taxable income before tax is calculated, while a rebate reduces the actual tax amount you owe, after it's been calculated. Because the rebate threshold can change from year to year and differs by regime, it's worth checking the current limit each year to see whether your income qualifies for this benefit when filing your return.