What Does Tax Exemption Mean?

A tax exemption is a form of being exempted from all forms of taxes of the state or the nation in which the payment of taxes is a compulsion and has to be collected from every individual or organization. In normal circumstances tax exemption is provided to an individual or a certain organization that falls under the protected class of some kind. Tax exemptions are usually meant to reduce the burden of paying taxes on a certain segment of the society and are done with the best of interests for the promotion of economic activity.   

The criteria for the exemptions of taxes are: - the age of the individual paying the taxes, ownership of types of properties, geographic position of the possessions and the income level of the individual paying the taxes.