<p>As Finance Minister Nirmala Sitharaman is set to present her eight <a href="https://www.deccanherald.com/union-budget-2025">Union Budget</a> in February, DH is coming up with short explainers on certain financial terms. One such term is tax abatement.</p><p><strong>What is tax abatement?</strong></p><p>Reduction in taxes for some corporates and businesses for a certain period is called tax abatement. The government cuts the taxes for select business establishments for a set period of time in order to push economic development.</p>.Union Budget 2025 | FAQs: What is a surcharge?.<p>There are multiple kinds of tax abatements, and property tax abatement is one of the most commons types of cut in taxes offered to businesses. Tax abatements are generally offered for a fixed number of years, and the tax returns to the usual rate after the period ends. </p><p>Although tax abatement is given to various industries, real estate often sees such reduction in taxes. </p>
<p>As Finance Minister Nirmala Sitharaman is set to present her eight <a href="https://www.deccanherald.com/union-budget-2025">Union Budget</a> in February, DH is coming up with short explainers on certain financial terms. One such term is tax abatement.</p><p><strong>What is tax abatement?</strong></p><p>Reduction in taxes for some corporates and businesses for a certain period is called tax abatement. The government cuts the taxes for select business establishments for a set period of time in order to push economic development.</p>.Union Budget 2025 | FAQs: What is a surcharge?.<p>There are multiple kinds of tax abatements, and property tax abatement is one of the most commons types of cut in taxes offered to businesses. Tax abatements are generally offered for a fixed number of years, and the tax returns to the usual rate after the period ends. </p><p>Although tax abatement is given to various industries, real estate often sees such reduction in taxes. </p>
