Indian Tax & Compliance Glossary

The year in which income earned in the previous financial year is assessed and taxed.

Comprehensive statement from income tax portal showing all financial transactions linked to your PAN.

Tax paid in instalments during the financial year itself, before the year ends.

Former tax on share premium above fair market value received by unlisted companies — abolished from AY 2025-26.

The price unrelated parties would charge each other — the standard for related-party transactions.

An agreement with the tax authorities fixing transfer pricing for up to five future years, with rollback.

A company repurchasing its own shares — taxed as dividend in shareholders' hands since October 2024.

Mandatory product certification for goods covered by Quality Control Orders.

Central government's share of GST on intra-state supplies.

The financial format banks use to assess working capital and term loan applications.

Bilateral treaty between India and another country preventing the same income from being taxed twice.

Unique 8-digit number assigned to every director of a company in India.

Electronic signature issued by certifying authorities — required for filing company/LLP documents with MCA.

Ministry department that grants Startup India recognition — unlocking angel tax exemption and Section 80-IAC benefits.

Transfer of a business undertaking to another company that issues shares to the original shareholders.

A company granted dormant status under Section 455, with reduced compliance for up to five years.

Tax-saving mutual fund with 3-year lock-in — qualifies for Section 80C deduction up to ₹1.5L.

Mandatory retirement savings scheme for employees in India — employee and employer each contribute 12% of basic salary.

The US federal tax ID for a company, obtainable by foreign owners without an SSN or ITIN.

The obligation on producers, importers and brand owners to fund collection and recycling of their packaging or products.

Health and social insurance for employees earning up to ₹21,000 a month in establishments with 10+ employees.

The 12-month period from April 1 to March 31 during which income is earned and recorded.

TDS certificate issued by employer to employee showing salary paid and TDS deducted annually.

Annual tax statement showing all TDS/TCS deducted and deposited against your PAN.

Indian law governing foreign exchange transactions, cross-border investments and NRI account operations.

The form residents file before their ITR to claim credit for tax paid abroad.

For tax audit purposes, the total of absolute profits and losses on each futures and options trade.

A US report of foreign financial accounts when their total exceeds USD 10,000 at any time in the year.

A US information return for foreign-owned single-member LLCs and corporations — $25,000 penalty if missed.

The accountant's report certifying international and specified domestic transactions for transfer pricing.

The law requiring NGOs to have registration or prior permission before receiving foreign donations.

Unique 15-digit registration number assigned to every GST-registered business.

Monthly/quarterly return for outward supplies (sales) filed by GST-registered businesses.

Monthly summary return where GST liability is declared and payment made.

Annual reconciliation return filed by regular GST taxpayers, summarising the full year's GST transactions.

Auto-generated monthly statement showing ITC available from suppliers' GSTR-1 filings.

A lump sum paid on leaving after five years' service (one year for fixed-term staff), tax-free up to ₹20 lakh.

Salary component that can be partially exempt from income tax if rent is paid.

Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.

Credit available to GST-registered businesses for GST paid on business purchases, which reduces their GST payable.

GST on inter-state supplies of goods and services — collected by the central government.

India's new income tax law, in force from 1 April 2026, replacing the Income-tax Act, 1961.

A US tax ID for individuals who must file US taxes but aren't eligible for an SSN.

A declaration every company with share capital files within 180 days of incorporation.

Salary component exempt from tax for domestic travel expenses — claimable twice in a block of 4 years.

Capital gains on assets held for more than the specified holding period — taxed at concessional rates.

Declaration filed by exporters on the GST portal to export goods/services without paying IGST.

RBI scheme allowing resident individuals to remit up to USD 250,000 per year abroad for permitted purposes.

Hybrid business structure with limited liability and partnership flexibility — governed by the LLP Act 2008.

A 20-character global ID required for large borrowers and large-value payments in India.

Registration for manufacturers, packers and importers of pre-packaged goods, with mandatory label declarations.

Four codes that replaced 29 labour laws from 21 November 2025 — wages, industrial relations, social security and OSH.

India's government ministry administering the Companies Act and registering companies through the MCA portal.

Monthly financial reports providing business performance metrics — P&L, balance sheet, cash flow and KPIs.

An Indian citizen residing outside India for more than 182 days in a financial year.

Bank account in India for NRIs holding foreign earnings converted to INR — interest is tax-free.

Bank account for NRIs to manage India-source income — interest is taxable, repatriation is capped.

Government pension scheme with tax benefits — additional ₹50,000 deduction under Section 80CCD(1B).

The default regime with lower slab rates, a ₹75,000 standard deduction and nil tax up to ₹12 lakh, but few deductions.

A mutual-benefit company that accepts deposits from and lends only to its members.

Investment by Indian residents in foreign entities, governed by the Overseas Investment Rules, 2022.

Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.

A separate legal entity incorporated under the Companies Act 2013 — most common startup structure.

Government-backed 15-year savings scheme with 7.1% tax-free returns — EEE tax treatment.

A non-cash benefit from an employer — housing, car, ESOPs, concessional loans — taxed as salary.

A US tax category that makes Indian mutual funds expensive for US citizens and residents to hold.

The test that can make a foreign company tax-resident in India if it is effectively managed from India.

The law requiring employers with 10+ employees to have an Internal Committee on sexual harassment complaints.

A UAE free zone company that meets conditions to pay 0% corporate tax on qualifying income.

A transitional residency status for individuals who have recently returned to India after being NRIs.

Government authority under MCA that registers companies and LLPs and maintains statutory records.

Employer shares granted on a vesting schedule, taxed as salary on vesting and as capital gains on sale.

Income tax deduction allowing up to ₹1.5 lakh on specified investments and payments.

Deduction for health insurance premiums — up to ₹25,000 for self (₹50,000 for senior citizens).

Tax paid by taxpayer at the time of filing ITR after accounting for TDS and advance tax.

Capital gains on assets sold within the specified short-term holding period — taxed at higher rates.

Capital gains exemption when LTCG from residential property sale is reinvested in another house.

LTCG exemption when net sale proceeds from any long-term capital asset (other than a house) are reinvested in a residential house.

State government's share of GST on intra-state supplies.

A rebate that reduces tax to nil for resident individuals with taxable income up to ₹12 lakh (new regime).

The ITR schedule where residents disclose every foreign account, shareholding, property and other asset.

Relief from extra tax when salary arrears or advance salary push income into a higher slab.

Income from transactions settled without delivery — mainly intraday equity trading.

A tax on buying and selling listed securities on stock exchanges, a condition for concessional capital gains rates.

Sale of a whole business undertaking for a lump sum, taxed under Section 50B on the gain over net worth.

The MCA's integrated web form for incorporating a company with PAN, TAN, GSTIN, EPFO and ESIC.

The registration that makes an NGO's income tax-exempt when applied to charitable purposes.

The deduction donors claim for donations to approved NGOs — and the approval NGOs need for it.

A state tax on documents such as sale deeds, leases and agreements, needed for them to be admissible as evidence.

10-character number required by entities that deduct or collect tax at source (TDS/TCS).

Tax deducted from payments by the payer and deposited with the government on behalf of the payee.

Tax collected by the seller from the buyer at the time of sale of specific goods/transactions.

Simplified summary of the AIS showing category-wise income aggregates for use in ITR filing.

Certificate from a foreign country's tax authority confirming that the holder is a tax resident of that country — required to claim DTAA benefits.

Outsourced Chief Financial Officer services — financial planning, MIS, investor reporting and compliance on a retainer.

Crypto, NFTs and similar assets, taxed at a flat 30% with no loss set-off and 1% TDS.