Tax Glossary – Understand Taxation in Simple Words

Advance Tax is a Tax Paid in Advance, in Installments, During the Same Financial Year.

Annual Information Statement Includes Taxpayers' Information, Including Securities, Interests, Divid

The Assessment Year is When Taxes on the Previous Year's Income Are Evaluated, Calculated, and File

A Balance Sheet is a Financial Statement Containing Assets, Liabilities, and Equity of Shareholders.

The Best Assessment Judgement Performed by an Assessing Officer on the Financial Conditions of the A

Capital, a Financial Term Used for Business Operations, Like Bank Accounts, Stocks, Assets, Etc.

Capital Gains, Profits on the Financial Assets at the Time of Selling.

Direct Tax, a Type of Tax Imposed on Income, Sales, or Property, Based on the Ability to Pay.

DTAA, an Agreement Signed Between the Countries to Avoid Double Taxation.

E-verification of ITR is the Filing and Verification of Income Taxes Electronically.

Exempt Income, Non-taxable as Per the Income Tax Department, Like Agricultural Income, Etc.

Faceless Assessment, a Random Allotment of Cases by Ai, Prevents Corruption and Fraud.

Financial Year, 12 Consecutive Months, Used for Business, Accounting, Budgeting, Etc.

FEMA, an Act to Manage and Simplify the Foreign Transactions, Remittances, Investments, Etc.

Gift Tax, Imposed on Gifts, Like Cash, Bonds, Jewellery, Buildings, Lands, Checks, Etc.

Gratuity, Payment From Employer to Employee, for Services of Five Years or More.

Gross Annual Value, Total Income Earned From Immovable Property, such as Commercial or Residential.

Gross Total Income, Final Income Earned Before the Deductions Are Implied.

Heads of Income, Category for Income Earned, Based on the Sources.

House Property Income Tax, Imposed on Housing Properties, on Income Earned From Renting Them.

HRA, Allowance for the Cost of Living, Given to the Employees in a Rented Housing System.

HUF, a Legal Unit of Family Members, Formed for Tax Purposes, and Claims Benefits.

Income Tax, a Type of Direct Tax, is Imposed by the Government on the Income of Individuals or Organ

Income Tax Act, an Act to Manage and Govern the Direct Taxes, by Levying, Collecting, and Administer

Income Tax Deductions, which are applied to the total taxable income, help decrease tax liabilities.

Income Tax Department, a Part of the Indian Government, Handles the Levying and Collection of the Ta

Income Tax Return, Filed by Taxpayers, Contains a Formal Record of the Collected Tax by the Governme

Indirect Tax, Applied on Goods and Services, Consists of Service Tax, Entertainment Tax, Excise Duty

Income Tax Return form, a form to report annual income and taxes, used by taxpayers.

A Joint Development Agreement, an Arrangement Between the Developers and the Landowners, Refers to T

Joint Venture, a Partnership Between the Entities to Achieve a Common Business Objective, Contributi