Reference
Tax & Business Glossary
Browse 145 tax and business terms. Select a letter to filter or search below.
A
8Advance Ruling
An Advance Ruling is a written answer. It tells you how tax law applies to your facts. You can ask for it before or during a deal. It binds the tax department.
Compliance & RegistrationsAdvance Tax
Advance Tax is the income tax you pay in the year. It comes in four instalments, not one sum. You must plan your tax payment before the year ends.
Income TaxAGM
An AGM is when the members of a company meet each year. The Companies Act, 2013 and Section 96 set the rules. You can vote on key matters there.
Corporate LawAIS
AIS is the Annual Information Statement. It shows the TDS and TCS tax credits on your PAN. You can check it on the tax portal. It is sent to you once a year.
Income TaxAIS vs TIS
AIS = raw transactional pass-through; TIS = category-grouped processed summary.
Income TaxAMT
AMT is the alternative minimum tax for you or a firm that pays little tax. It works on your income when your normal tax is low. You can pay it on your own.
Income TaxAoA
The AoA is the rule book of a company. It says how the members and the board work with each other. You change it with a special vote and file it with the ROC.
Company LawAudit
A systematic, independent examination of financial records, statements, and supporting documents to express an opinion on their truth and fairness.
Accounting & AuditB
4Balance Sheet
A Balance Sheet shows what a company owns and what it owes. You can read the cash, stock and debt on one date. It is also part of the accounts.
Accounting & AuditBoard of Directors
Board of Directors is the group that runs a company. They hire the top people and check the books. They also sign the key papers for the firm.
Corporate LawBonus
Bonus is a part of your salary that the law asks a firm to pay. It falls under the Payment of Bonus Act, 1965. The amount is set by your pay and profit.
HR, Payroll & Labour LawBonus Share
Bonus Share means free shares a firm gives to all its owners. The count rests on the shares you hold. It comes from the firm's reserves. No cash is paid out.
Corporate LawC
12Carpet Area
Carpet Area is the floor space inside the walls of a flat. The balcony and the common area do not count. You see it on the floor plan when you buy.
Real Estate & RERACASA Ratio
Current Account Savings Account Ratio — the proportion of a bank's total deposits held in current and savings accounts (low-cost deposits) versus…
Banking & FinanceCash Flow Statement
A financial statement that summarises the cash and cash-equivalent inflows and outflows of a company during a period, classified into operating,…
Accounting & AuditCashless Hospitalisation
A facility offered by health insurers where the insured does not pay cash to the hospital for covered treatments; the insurer settles the bill…
InsuranceCGST
CGST is the central government's part of GST. You pay it when you sell goods or services within one state. Your tax bill shows CGST and SGST on it.
GST & Indirect TaxCIBIL Score
CIBIL Score is the 3-digit number that shows how a bank sees your credit file. It runs from 300 to 900, and a high score gets you a loan at a low rate.
Banking & FinanceCIN
CIN is the 21-character code that the ROC gives a new company. You use it for all forms you send to the MCA. It stays the same for the life of the company.
Company LawComposition Scheme
A simplified GST scheme for small taxpayers with turnover up to ₹1.5 crore (₹75 lakh for services) allowing payment of tax at a fixed percentage of…
GST & Indirect TaxCopyright
An automatic, exclusive right given to the creator of original literary, musical, artistic, dramatic, cinematographic, or software work for a limited…
Intellectual PropertyCSR-1 Filing
CSR-1 Filing is the form a company sends to the MCA to register a CSR project. You file it once for each new CSR project. The plan stays on the MCA list.
Compliance & RegistrationsCTC
Cost to Company — the total annual expense incurred by the employer on an employee, including all salary components, benefits, and statutory…
HR, Payroll & Labour LawCurrent Assets
Current Assets are the things your business turns into cash in a year. Stock, debtors and cash sit here. You find them on the Balance Sheet of your firm.
Accounting & AuditD
7Depreciation
Depreciation spreads the cost of an asset over the years you use it. You claim it in your ITR to cut the tax you pay. The Income Tax Act sets the rules.
Accounting & AuditDesign Registration
Registration of the visual design of an article (shape, configuration, pattern, ornament) that appeals to the eye, under the Designs Act, 2000.
Intellectual PropertyDIN
DIN is the ID you get when you are a company director. The MCA gives you 8 digits for life. You need it to join the board of a company you work in.
Company LawDividend
Dividend is the part a company gives to its owners. The Board of Directors must sign it. It must be paid to you in 30 days. TDS is taken off it.
Accounting & AuditDSC
DSC is your digital sign for filing on government portals. It shows who sent the file. You buy it from a trusted firm. You use it for tax and MCA work.
Company LawDSC
Electronic signature token mandated for MCA, IT, GST, EPFO, and DGFT filings.
Company LawDTAA
DTAA is the treaty India signs with another country. It stops you paying tax twice on the same income. You claim relief with Form 10F and a TRC.
FEMA & International TaxE
10E-way Bill
E-way Bill is the e-document you make on the GST portal before you move the goods. You need it when the value of the goods is more than ₹50,000.
GST & Indirect TaxE-Way Bill
E-Way Bill is the online pass for goods worth over ₹50,000. You make it on the GST portal before the goods move. It covers goods that move across India.
GST & Indirect TaxEBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortisation — a measure of operating profitability that strips out financing and non-cash items.
Accounting & AuditEGM
An EGM is a meeting of owners other than the AGM. It is called for urgent or special work. You call it when a vote cannot wait for the next AGM.
Corporate LawEMI
An EMI is the equated monthly instalment on a loan. You pay it on the same date each month. Part of it pays off the loan. The rest is the interest.
Banking & FinanceEPF
EPF is the retirement savings scheme for your staff. It runs under the EPF and MP Act of 1952. You and your employer each add a share every month.
HR, Payroll & Labour LawEPFO
EPFO runs the provident fund and pension schemes for employees. Your employer and you both pay a share each month. It works under the EPF and MP Act of 1952.
HR, Payroll & Labour LawESI
ESI gives health cover and cash help to workers in India. It runs under the ESI Act, 1948. Your employer and you each pay a share of it each month.
HR, Payroll & Labour LawESIC
ESIC runs the Employees' State Insurance scheme. You get health care and cash benefits from it. Your employer and you both pay a share each month.
HR, Payroll & Labour LawESOP
Employee Stock Option Plan — a scheme allowing employees to purchase shares of the company at a pre-determined price within a specified period.
Corporate LawF
6Factories Act
A central labour law (Factories Act, 1948) regulating the working conditions, safety, health, and welfare of workers in manufacturing units employing…
Compliance & RegistrationsFDI
Foreign Direct Investment — investment by a person resident outside India in the capital of an Indian company, with the objective of establishing a…
FEMA & International TaxFEMA
Foreign Exchange Management Act, 1999 — the central law that regulates foreign exchange transactions and capital flows in India, replacing the…
FEMA & International TaxForm 26AS
Form 26AS is the yearly tax credit statement for your PAN. It shows the TDS and TCS taken from you, and the tax you paid yourself. You can see it online.
Income TaxFPI
Foreign Portfolio Investment — investment by foreign investors in financial assets like stocks, bonds, and mutual funds without acquiring significant…
FEMA & International TaxFSSAI
FSSAI is the body that sets the food rules in India. It gives licences to food units under the FSS Act, 2006. You need one to sell food in a shop.
Compliance & RegistrationsG
7Gratuity
A lump-sum retirement benefit paid by the employer to an employee who completes at least 5 years of continuous service under the Payment of Gratuity…
HR, Payroll & Labour LawGST
Goods and Services Tax — an indirect, destination-based tax levied on the supply of goods and services across India, replacing multiple central and…
GST & Indirect TaxGSTIN
GSTIN is the 15 digit number that identifies you for GST. Your PAN and state code sit in it. You must quote it on the invoice and on every bill.
GST & Indirect TaxGSTIN vs CIN
A GSTIN has 15 characters and is your GST tax ID for each state. A CIN has 21 characters and is your company ID from the MCA. You quote both on your invoice.
GST & Indirect TaxGSTN
GSTN is the firm that runs the GST portal and the IT system behind it. It is a not for profit firm set up by the government. Your tax files all run on it.
GST & Indirect TaxGSTR-1
GSTR-1 is the monthly GST return for your sales. You list each sale and the tax on it. Monthly filers must file it by the 11th of the next month.
GST & Indirect TaxGSTR-3B
GSTR-3B is the monthly return a GST dealer files on the portal. It shows your sales, your ITC, and the tax you must pay for the month. You file it on time.
GST & Indirect TaxH
4Health Insurance
Health Insurance pays for your hospital stay and the care you get. You can claim the premium you paid under Section 80D. It can save you tax.
InsuranceHome Loan
A secured loan provided by banks and housing finance companies (HFCs) to finance the purchase, construction, or renovation of a residential property.
Real Estate & RERAHSN Code
HSN Code stands for Harmonized System of Nomenclature. It is a 6 or 8 digit code for goods and it sets your GST rate. You show it on your invoice.
GST & Indirect TaxHSN vs SAC
HSN vs SAC: HSN codes goods, and SAC codes services. Both must be on your GST invoice under the CGST Act and Rules. HSN uses 6 or 8 digits. SAC uses 6 digits.
GST & Indirect TaxI
14IEC
Importer Exporter Code — a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) to any person or firm engaged in import or export…
Compliance & RegistrationsIFSC
Indian Financial System Code — an 11-character alphanumeric code that uniquely identifies a bank branch for electronic fund transfers in India.
Banking & FinanceIGST
IGST is the tax on goods and services that cross a state border. The Centre collects it for all the states. You see it on your bill or your invoice.
GST & Indirect TaxIMPS
IMPS is the instant way to move money between banks. It runs 24x7 and works on holidays too. You send it from a banking app with the IFSC code.
Banking & FinanceIncome Tax
Income Tax is a direct tax on what you earn. The Income Tax Act, 1961 sets the rates and the slabs. You pay it on wages and on business profit each year.
Income TaxInd AS
Indian Accounting Standards — the accounting standards converged with IFRS and notified by the Ministry of Corporate Affairs for preparation of…
Accounting & AuditInd AS 115
Ind AS 115 is the Indian standard for revenue from contracts with customers. It has a 5-step model. You use it when you sell goods or give a service.
Accounting & AuditIndependent Director
A non-executive director of a company who has no material relationship with the company and is not part of the promoter group, as defined under…
Corporate LawInternal Audit
Internal Audit is a check of your books by your own team. It finds errors and risk in the way you work. Section 138 of the Companies Act also asks for it.
Accounting & AuditIRDAI
Insurance Regulatory and Development Authority of India — the apex body that regulates the insurance industry in India under the IRDA Act, 1999.
InsuranceIRN
IRN is the hash code for a GST invoice. The Invoice Registration Portal gives it. You use it to check a bill. You can pull up that bill any time.
GST & Indirect TaxISO
International Organization for Standardization — an independent, non-governmental international body that develops voluntary consensus standards for…
Compliance & RegistrationsITC
ITC is the GST you paid on inputs and input services. You set it off against the GST you charge on sales. You need the supplier bill to claim it.
GST & Indirect TaxITR
An ITR is the income tax return you file each year. It shows your income, deductions and the tax you must pay. You pick the form that fits your type of income.
Income TaxK
1L
4Labour Welfare Fund
A state-level fund that provides financial assistance and welfare benefits to workers in specified industries, funded by contributions from employers…
HR, Payroll & Labour LawLLP
Limited Liability Partnership — a hybrid entity combining the benefits of a company (limited liability) and a partnership (flexible governance),…
Corporate LawLRS
Liberalised Remittance Scheme — a RBI scheme allowing resident individuals to remit up to USD 2,50,000 per financial year for permitted current and…
FEMA & International TaxLTCG
LTCG is the capital gain on an asset you sell after the full holding period. The period is set for each type of asset. You pay tax on the gain you made.
Income TaxM
7MAT
MAT is an extra tax for a company that would pay a small tax. It is set on the profit that your books show. You pay it under the Income Tax Act.
Income TaxMaternity Benefit
A statutory benefit provided to women employees under the Maternity Benefit Act, 1961 (amended 2017), for absence from work during pregnancy and…
HR, Payroll & Labour LawMCA
Ministry of Corporate Affairs — the central government ministry responsible for administering the Companies Act 2013, LLP Act 2008, and other…
Corporate LawMinimum Wages
The minimum statutory wage rate that an employer must pay to a worker, notified by the central or state government for scheduled employments under…
HR, Payroll & Labour LawMoA
The MoA is the base of a company in India. It sets the name, the objects and the capital. You give it to the ROC so you can set up a new company.
Company LawMOA and AOA
MOA and AOA are the two rule books of a company. The MOA sets its scope. The AOA sets the rules inside. You sign both when you set up the firm.
Company LawMSME
Micro, Small and Medium Enterprises — businesses classified by investment in plant and machinery and annual turnover, as per the MSMED Act, 2006.
Compliance & RegistrationsN
7NACH
National Automated Clearing House — a centralised payment system operated by NPCI that facilitates bulk electronic payments and collections.
Banking & FinanceNEFT
National Electronic Funds Transfer — a centralised, nation-wide payment system operated by the Reserve Bank of India that facilitates one-to-one…
Banking & FinanceNil-Rated Supply
A Nil-Rated Supply has a 0% GST rate. No tax is charged on it. You cannot claim the input tax credit. You still report it in your GST return.
GST & Indirect TaxNo-Claim Bonus
No-Claim Bonus is what your insurer gives you at renewal. You earn it when you make no claim for a full year. It cuts what you pay next time.
InsuranceNOC
A NOC is a no objection certificate from your lender. It says you have paid the loan in full. You need it to sell the asset. You need it to get your papers.
Banking & FinanceNPCI
National Payments Corporation of India — the umbrella organisation for all retail payment systems in India, owned by a consortium of major banks.
Banking & FinanceNRI
Non-Resident Indian — an Indian citizen or person of Indian origin who resides outside India for purposes of employment, business, or other…
FEMA & International TaxO
3Old vs New Regime
Two alternative tax structures for individuals and HUFs — the old regime with most exemptions, and the new default regime with lower slab rates but…
Income TaxOld vs New Tax Regime
Old vs New Tax Regime: pick one for FY 2020-21. The old plan keeps all deductions you claim. The new one has lower slabs and fewer deductions.
Income TaxOPC
An OPC is a private company with just one member. The rule is in Section 2(62) of the Companies Act, 2013. One person holds all the shares in it.
Corporate LawP
10P&L Statement
P&L Statement shows the money in and the money out for a year. The last line is your profit or loss. Banks and lenders ask for it when you take a loan.
Accounting & AuditPAN
A PAN is the 10-character code that the tax department gives you. Each person and firm in India has one. You need it for your ITR form and for your bank.
Income TaxPAN vs TAN
PAN vs TAN: both are 10-character numbers from the Income Tax Department. A PAN is for all who pay tax. A TAN is for those who hold back tax at source.
Income TaxPatent
An exclusive right granted for an invention, providing the owner the right to exclude others from making, using, selling, or importing the patented…
Intellectual PropertyPatent Infringement
The unauthorised making, using, selling, offering for sale, or importing of a patented invention in India, in violation of the patentee's exclusive…
Intellectual PropertyPCT
Patent Cooperation Treaty — an international patent filing treaty administered by WIPO that lets applicants seek patent protection in multiple…
Intellectual PropertyPremium
A Premium is the money you pay an insurer for cover. You pay it in one go, or in parts over the year. Miss a due date and your cover can stop.
InsurancePrivate Limited Company
A company that restricts the right to transfer its shares, limits the number of members to 200, and prohibits any invitation to the public to…
Corporate LawProfessional Tax
Professional Tax is a state tax on the money you earn from work. You pay it to the state and not to the Centre. Each state sets its own rate and limit.
Compliance & RegistrationsProfessional Tax Registration
State-level registration required of employers, professionals, and traders for deducting/depositing professional tax on salaries or business income.
Compliance & RegistrationsR
9RBI
Reserve Bank of India — the central bank of India, established under the RBI Act, 1934, responsible for regulating the issue and supply of the Indian…
Banking & FinanceRegistration Fee
Registration Fee is what you pay to record a property deal. The state sets the rate on the deal value. It is often 1% of it. You also pay stamp duty.
Real Estate & RERARental Yield
The annual rental income from a property as a percentage of its market value or acquisition cost, used to evaluate property investment returns.
Real Estate & RERARERA
Real Estate (Regulation and Development) Act, 2016 — a central law that regulates the real-estate sector and protects home-buyers' interests.
Real Estate & RERAReverse Charge
Reverse Charge means the buyer pays the GST, not the seller. It sits in Section 9(3) or 9(4) of the CGST Act. The government notifies the goods and services.
GST & Indirect TaxReverse Charge Mechanism
Reverse Charge Mechanism, or RCM, shifts GST from the seller to the buyer. You pay the tax if you buy such goods. The law names the goods and services.
GST & Indirect TaxROC
ROC is the Registrar of Companies. It works under the MCA. You send it your forms. It keeps the list of all the companies and LLPs you can see.
Corporate LawROC Filing
ROC Filing means the yearly forms a company sends to the ROC. The Companies Act, 2013 rules them. You must send them on time. LLPs and companies do this.
Company LawRTGS
Real Time Gross Settlement — a payment system that settles fund transfers in real time, on a transaction-by-transaction basis, without netting.
Banking & FinanceS
16SAC Code
SAC Code is the 6 digit code you use to classify a service for GST. It tells you the rate to charge. You add it to your invoice and your GST return.
GST & Indirect TaxSalary Structure
The breakdown of an employee's total compensation into components like basic salary, HRA, special allowances, and other benefits for tax and…
HR, Payroll & Labour LawSection 17 of Income Tax Act
The section of the Income Tax Act that defines 'salary' income and lists the components that constitute taxable salary, including perquisites,…
HR, Payroll & Labour LawSection 24(b)
Section 24(b) lets you save tax on the interest you pay for a home loan. You can claim up to ₹2 lakh each year. It applies only to a self occupied home.
Real Estate & RERASection 44AD
Section 44AD: presumptive taxation for businesses with turnover up to ₹3 crore (₹75 lakh if cash >5%). 8% deemed income (6% digital). Tax limit, advance tax, ITR-4, and applicability explained.
Income TaxSection 44AD vs 44ADA
Section 44AD vs 44ADA: both let you pay tax on a set share of income. Use 44AD for trade or shops. Use 44ADA for professional work. You claim it in your return.
Income TaxSection 44AD vs 44AE
Section 44AD vs 44AE: both are simple ways to declare business income. Use 44AD for trade at 6% or 8% of turnover. Use 44AE for goods carriers, ₹1,000 a ton.
Income TaxSection 44ADA
Section 44ADA: presumptive tax for professionals. 50% deemed income on gross receipts up to ₹75 lakh. ITR-4 filing explained.
Income TaxSection 8 Company
A company registered under Section 8 of the Companies Act, 2013 for promoting commerce, art, science, sports, education, research, social welfare,…
Compliance & RegistrationsSection 80C
Deduction of up to ₹1.5 lakh per year on specified investments and expenses such as EPF, PPF, ELSS, life insurance, home-loan principal, and tuition…
Income TaxSection 80D
Section 80D cuts the tax on your health insurance. It covers what you pay for you, your family and your parents. You can claim it in your ITR.
Income TaxSGST
SGST is the state government's share of GST. You pay it when you sell goods or services inside one state. Your invoice shows SGST and CGST on it.
GST & Indirect TaxShop and Establishment Act
Shop and Establishment Act is the state law for shops and offices. It sets rules on work hours, leave and job terms. Each state has its own version of it.
Compliance & RegistrationsStamp Duty
Stamp Duty is a tax you pay on a property deal. The state collects it when you buy or sell a flat. Its rates come from the Indian Stamp Act, 1899.
Real Estate & RERASTCG
STCG is the capital gain on an asset you sell in the short term. It arises when you hold it for less than the set period. You pay tax on the gain you made.
Income TaxSum Assured
The fixed amount that the insurance company agrees to pay to the nominee on the insured event (death or maturity) under a life-insurance policy.
InsuranceT
9TAN
TAN is the ID you need to deduct tax at source. It has 10 digits and one number works for all your business. You need it to file TDS returns.
Income TaxTax Audit
Section 44AB of the Income Tax Act. It needs a Tax Audit in some cases. A chartered accountant signs it. You get a report from them. You send it with your ITR.
Accounting & AuditTCS
TCS is the tax a seller takes from the buyer at the time of sale. It sits under Section 206C of the Income Tax Act. You pay it and file it on time.
Income TaxTDS
Tax Deducted at Source — tax withheld by the payer at the time of making specified payments such as salary, rent, interest, and professional fees.
Income TaxTDS 24Q vs 26Q vs 27Q
TDS 24Q vs 26Q vs 27Q: you file one form each quarter for each type of tax you deduct. Use 24Q for salary, 26Q for other pay and 27Q for TCS.
Income TaxTerm Insurance
A pure life-insurance plan that provides financial cover to the nominee in case of the policyholder's death within the policy term, with no maturity…
InsuranceTIS
TIS is the part of the AIS that updates as your TDS and TCS credits come in. It shows what has been filed so far this year. You can check it on the portal.
Income TaxTrademark
A distinctive mark, logo, word, phrase, symbol, or design that identifies and distinguishes the source of goods or services of one party from those…
Intellectual PropertyTrademark Class
A Trademark Class puts your goods or services in one group. India has 45 such classes in the full list. You pick one class for your brand or logo.
Intellectual PropertyU
5UAN
Your UAN is the 12-digit number EPFO gives you. It stays the same for all your jobs. You give it to your employer to check your EPF balance any time.
HR, Payroll & Labour LawUAT
UAT is the number the MCA gives you when you file a form. It shows that your file got to the site. You use it to check how the file is doing and to track it.
Company LawUdyam Registration
Udyam Registration is the free sign up for MSMEs. You can do it online and it began on 1 June 2020. You get a number to show for your work order.
Compliance & RegistrationsUPI
Unified Payments Interface — a real-time payment system developed by the National Payments Corporation of India that enables instant inter-bank…
Banking & FinanceUTGST
UTGST is the GST that replaces SGST in Union Territories. It pairs with CGST on sales in the area. The tax goes to the Centre. The state gets a share.
GST & Indirect TaxW
1Z
1145 terms total. Select a letter above to filter, use the category chips to jump to a topic, or search to find a specific term.
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