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.

Tax on share premium received by unlisted companies from investors above fair market value.

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

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.

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 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.

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.

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.

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.

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).

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 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.

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.

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.