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GLOSSARY CATEGORY

Tax

34 terms with concise definitions

Advance Tax

Term

Income tax paid in installments during the financial year based on estimated income.

Arm's Length Price

Term

Price charged in a transaction between related parties as if they were independent.

Business PAN

Term

Permanent Account Number issued to businesses for tax identification in India.

Capital Gains

Term

Profit earned from the sale of a capital asset.

Direct Tax

Term

Tax paid directly by a person or entity to the government, like income tax.

Double Taxation

Term

Situation where the same income is taxed in two jurisdictions.

Form 16

Term

TDS certificate issued by employers to salaried employees.

Form 26AS

Term

Annual tax statement showing TDS, TCS, and tax payments.

Home Loan Interest

Term

Interest paid on housing loan, often eligible for tax benefits.

House Rent Allowance (HRA)

Term

Salary component for rent expenses with potential tax exemption.

Income Tax

Term

Direct tax on income earned by individuals and entities.

Indirect Tax

Term

Tax collected by intermediaries on goods or services, like GST.

Long-term Capital Gains

Term

Profits from sale of assets held beyond a specified period.

Lower Deduction Certificate (LDC)

Term

Certificate allowing tax deduction at a reduced rate.

Minimum Alternate Tax (MAT)

Term

Tax on book profits when regular tax liability is low.

Nexus

Term

Level of presence that creates tax or regulatory obligations in a jurisdiction.

Non-resident (NRI)

Term

Person who is not resident in India for tax purposes.

Notice of Demand

Term

Tax notice requiring payment of a specified amount.

PAN

Term

Permanent Account Number used for tax identification in India.

Professional Tax

Term

State-level tax on professions, trades, and employment.

Provisional Assessment

Term

Temporary tax assessment subject to final determination.

Quarterly TDS Statement

Term

Periodic statement reporting tax deducted at source.

Section 80C

Term

Income tax provision allowing deductions for specified investments.

Self Assessment Tax

Term

Tax paid by the taxpayer after computing own liability.

TAN

Term

Tax Deduction and Collection Account Number for TDS/TCS filers.

TCS

Term

Tax Collected at Source by sellers on specified transactions.

TDS

Term

Tax Deducted at Source from payments such as salary, rent, or fees.

Transfer Pricing

Term

Pricing of transactions between related entities across borders.

VAT

Term

Value Added Tax applied on goods and services in some jurisdictions.

Wealth Tax

Term

Tax on net wealth; currently abolished in India.

Withholding Tax

Term

Tax withheld by a payer and remitted on behalf of the recipient.

Year of Assessment

Term

Period in which income tax is assessed for a previous year’s income.

Zonal Tax Office

Term

Regional tax authority office handling area-specific cases.

Zone-wise Exemption

Term

Tax or regulatory relief provided for specific geographic zones.