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 is the raw passbook of your income that the tax office keeps. TIS is the same data cut into groups. Read AIS to check each entry. Read TIS for the total.
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
An audit is a close check of your books by an outside eye. The checker tests your bills and your sums. Then they say if the books give a true view.
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
CASA ratio is the share of a bank's funds held in current and savings accounts. That cash costs the bank less than a term deposit. So a high ratio is good.
Banking & FinanceCash Flow Statement
A cash flow statement shows the cash that came in and went out. It splits the flow into trade, asset buys and funding. It shows if a firm can pay its bills.
Accounting & AuditCashless Hospitalisation
Cashless hospitalisation means you pay no cash at the desk. The firm pays the bill at a hospital in its net. You show your card. That is all you do.
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
The composition scheme is a flat GST plan for small firms. You pay a set share of sales in place of the full rate. You file fewer forms, but lose input credit.
GST & Indirect TaxCopyright
Copyright is your right to own a work you made. It covers books, songs, art and code. You get it as soon as you make the work. You do not have to file for it.
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
CTC means Cost to Company. It is the full sum a firm spends on you in a year. It covers your pay, your perks and the firm's share of levies.
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
Design registration guards the look of your product. It covers the shape, the lines and the trim. The Designs Act, 2000 sets the terms. You can stop a copy.
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
DSC means Digital Signature Certificate. It is a safe key that signs your form online. MCA, GST and the tax site all ask for it. It proves you sent it. Keep it.
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
EBITDA shows what a firm earns from its main work. It leaves out loan interest, tax and the wear on plant. A lender reads it to judge your loan.
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
ESOP means Employee Stock Option Plan. It gives staff the right to buy firm shares at a set price later. The gap to the market price is the gain.
Corporate LawF
6Factories Act
The Factories Act, 1948 is a law for places that make goods. It sets rules on safety and hours. It covers a unit with power and staff. It keeps you safe.
Compliance & RegistrationsFDI
FDI means Foreign Direct Investment. A person from abroad puts cash into a firm here and takes a real stake. They want to run it. They do not just trade.
FEMA & International TaxFEMA
FEMA is the law on cash that flows in and out of India. Its full name is the Foreign Exchange Management Act, 1999. The RBI writes its rules. Read them.
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
FPI is cash from abroad. It buys shares or fund units here. Its full name is Foreign Portfolio Investment. It does not run the firm. It just buys and sells.
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
Gratuity is a lump sum a firm pays you when you leave after long service. The Payment of Gratuity Act, 1972 sets it. It thanks you for your years there.
HR, Payroll & Labour LawGST
GST is a tax on the supply of goods and services across India. It took the place of a set of state and central taxes. You charge it on your bill.
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 home loan is money from a bank to buy, build or fix a home. You promise the house as surety. You pay it back in monthly steps with interest.
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
IEC is the Importer Exporter Code. DGFT gives it to you as a code of 10 signs. You need it to ship goods out of India or to bring them in. One code covers both.
Compliance & RegistrationsIFSC
IFSC is the Indian Financial System Code. It is a code of 11 signs that names one bank branch. You need it to send money by NEFT or RTGS. Your bank prints it.
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
Ind AS means Indian Accounting Standards. These rules tell a firm how to write its books to match world norms. The MCA brings them out for large firms.
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
An independent director has no job or trade tie with the firm. They are not part of the owner group. Section 149(6) of the Companies Act sets the test.
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
IRDAI rules the insurance trade in India. It gives out a licence to a firm that sells cover. It guards your claim. Check its site for the rule book. Read it.
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
ISO is the world body that writes standards. These set the rules on how a firm must work. A client asks for ISO 9001 to see that you meet them.
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
The labour welfare fund is a state pool for worker aid. Firms and staff both pay into it. The state then funds health help from it. The rules differ by state.
HR, Payroll & Labour LawLLP
LLP means Limited Liability Partnership. You get a firm's ease and a shield on what you own. Two people can start one. The LLP Act, 2008 sets out the rules.
Corporate LawLRS
LRS is the Liberalised Remittance Scheme. It lets you send cash out of India for set needs. The RBI caps it each year. Your bank has the form for it.
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
Maternity benefit is the paid leave a woman worker gets. She takes it for a birth. The law sets the span of that leave. She then gets rest and care at home.
HR, Payroll & Labour LawMCA
MCA means Ministry of Corporate Affairs. It runs the firm and LLP laws for you. You file your forms with it. It holds the public firm records.
Corporate LawMinimum Wages
Minimum wages is the floor rate a firm must pay a worker. The central or state government sets it for listed jobs. You may pay more, but you may not pay less.
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
MSME means Micro, Small and Medium Enterprise. India sorts a firm into these three tiers by plant and by turnover. The MSMED Act, 2006 sets the test.
Compliance & RegistrationsN
7NACH
NACH is a bulk pay system run by NPCI. Firms use it to pay staff, send a refund and pick up a loan EMI. One file can pay many people at the same time.
Banking & FinanceNEFT
NEFT moves your money from one bank to another. It is not instant, because banks send it in batches. Use it to pay bills, staff and small firms.
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
NPCI runs the retail pay net in India, and your bank is one of its owners. UPI, IMPS, NACH and RuPay all sit under it. It is a set of banks.
Banking & FinanceNRI
NRI means Non-Resident Indian. It is a tag for a person from India who now lives abroad. Your tax and bank terms change with it. Tell your bank when you go.
FEMA & International TaxO
3Old vs New Regime
The old and the new regime are two ways to work out your income tax. The old one keeps most claims but has higher rates. The new one has lower rates.
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
A patent is a right over a new invention. It lets you stop others. No one may make or sell your idea in India. You must file and pass a check.
Intellectual PropertyPatent Infringement
Patent infringement is when a firm uses or sells your invention and you did not say yes. Your patent lets you stop them. You can claim a sum. Act fast.
Intellectual PropertyPCT
PCT means Patent Cooperation Treaty. You file one form. Then you claim it in each land you pick. WIPO runs it. So you file once. That is the point of it.
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 private limited company is a firm with a small set of owners. It limits who can buy in. It may not ask the public for cash. Your own assets stay safe.
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
Professional tax registration is a state form for a firm that pays staff. The state takes a small cut of pay. Some trades pay it too. Keep it live.
Compliance & RegistrationsR
9RBI
The RBI is the Reserve Bank of India. It is the central bank, set up under the RBI Act, 1934. It issues the rupee and keeps watch on the banks.
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
Rental yield is the rent you get in a year, as a share of what the property cost. It tells you how hard your money works. A low yield means the price ran up.
Real Estate & RERARERA
RERA is a law that guards the real estate trade. A builder must list a project with the state before it sells a unit. A buyer can claim if the build slips.
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
RTGS settles each payment on its own, the moment you send it. It is meant for large sums. Your bank may charge a fee. It does not net off at day end.
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
A salary structure splits your full pay into parts. It shows your basic pay, rent aid, other cash and perks. The split shapes how much tax you pay.
HR, Payroll & Labour LawSection 17 of Income Tax Act
Section 17 of the Income Tax Act says what counts as salary. It lists pay, perks and profit in place of pay, plus claims you can take. Check your pay slip.
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 is a presumptive tax scheme for small firms. You show 8% of cash sales or 6% of digital sales as profit and skip the books. You file ITR-4.
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 is a presumptive tax scheme for pros like doctors and lawyers. You show 50% of gross receipts as profit up to ₹75 lakh. You file ITR-4.
Income TaxSection 8 Company
A Section 8 company is a firm set up for a cause, not for profit. It may work in art, sport, school, research or aid. Its gains go back into the work.
Compliance & RegistrationsSection 80C
Section 80C lets you cut your tax by what you put into set plans. It covers EPF, PPF, ELSS, life cover and home loan principal. The law caps the sum each year.
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
Sum assured is the fixed sum the firm pays when the event in your policy hits. It is the cover you bought. It is not the plan's market value. Read it first.
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
TDS means Tax Deducted at Source. The person who pays you holds back part of the tax and sends it to the state. Your salary, rent and fees face it.
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
Term insurance is a pure life cover with no savings part. The firm pays your family if you die in the term. If the term ends first, you get nothing.
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 trademark is a mark that tells a buyer where your goods or services come from. It can be a word, a logo, a shape or a shade set. You file it to own it.
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
UPI moves money at once from one phone to another. NPCI runs it and your bank app links to it. You pay a shop with a small handle. No card and no net bank pin.
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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