Tax words, in plain words.

47 terms

ADT-1Company

The form that informs the ROC of an auditor’s appointment.Related

Advance taxIncome tax

Paying your tax during the year, in instalments by 15 June, September, December and March, when your tax after TDS will be ₹10,000 or more.Related

AGMAnnual general meetingCompany

The yearly meeting of a company’s shareholders to adopt the accounts. For most companies it must be held by 30 September.Related

AISAnnual Information StatementIncome tax

A statement from the income tax department listing what others have reported against your PAN: salary, interest, dividends, share and mutual fund sales, property purchases and more. Your return should agree with it.Related

AOC-4Company

The form in which a company files its financial statements with the ROC, within 30 days of the AGM.Related

ARNAcknowledgement reference numberGST

The number the GST portal gives when a return or application is submitted. It is your proof of filing.

ASMT-10GST

A notice listing discrepancies found when an officer scrutinised your returns. You reply in ASMT-11.Related

CIN and LLPINCompany

The identity numbers the ROC gives a company (CIN) or an LLP (LLPIN) when it is registered.

Composition schemeGST

A simpler option for small businesses: pay GST at a low flat rate on turnover, file quarterly, but without charging GST to customers or claiming input credit.

DINDocument identification numberIncome tax

A unique number on genuine communications from the income tax department. You can check it on the e-filing portal before acting on a notice.Related

DRC-03GST

The form used to pay GST voluntarily or against a notice, outside the regular return.

DSCDigital signature certificateCompany

An electronic signature used to sign forms filed online with the ROC and other portals.Related

E-invoiceGST

An invoice reported to the government’s invoice portal, which returns a unique reference number and QR code. Required above a turnover limit set by the government.

E-verificationIncome tax

Confirming your filed return online, for example with an Aadhaar OTP or net banking. A return is not complete until it is verified within the time allowed.Related

E-way billGST

A document generated online before moving goods above a value limit, generally ₹50,000, carrying details of the goods and the vehicle.

ESIEmployees’ State InsurancePayroll

Health and social insurance for employees under a wage limit, funded by employer and employee contributions paid monthly.Related

Form 26ASIncome tax

Your tax credit statement: TDS and TCS deducted from your payments, and advance or self-assessment tax you have paid. It shows the credits you can claim in your return.Related

GSTINGST

Your 15-character GST registration number. It starts with your state code and contains your PAN.Related

GSTR-1GST

Your statement of sales for the month or quarter, invoice by invoice for business customers. Your customers’ input credit comes from it.Related

GSTR-2BGST

An auto-drafted statement of the input credit available to you, built from what your suppliers reported. Claims in GSTR-3B should match it.Related

GSTR-3BGST

The summary return in which you declare your tax, claim input credit and pay the balance, monthly or quarterly.Related

GSTR-9 and 9CGST

The annual GST return (GSTR-9) and, above a higher turnover, a reconciliation statement between your books and your returns (GSTR-9C).Related

HSN and SACGST

Codes that classify goods (HSN) and services (SAC). They decide the GST rate and appear on invoices and returns.Related

IntimationIncome tax

The department’s message after processing your return, comparing your figures with its own and showing a refund, no change, or a demand.Related

ITCInput tax creditGST

GST you paid on purchases that you can set off against the GST you owe on sales, if the supplier has reported the invoice and other conditions are met.Related

ITRIncome tax returnIncome tax

The yearly return in which you report your income, deductions and tax paid. Different ITR forms apply depending on the kind of income you have.Related

LLP Form 8 and 11Company

An LLP’s annual filings: Form 11, the annual return, by 30 May; Form 8, the statement of accounts and solvency, by 30 October.Related

MGT-7Company

A company’s annual return to the ROC, covering shareholders, directors and meetings, due within 60 days of the AGM. Small companies file MGT-7A.Related

Old and new regimeIncome tax

Two ways of computing an individual’s tax. The new regime, the default, has lower rates but few deductions. The old regime allows deductions such as investments, health insurance and home-loan interest.Related

PANPermanent account numberIncome tax

Your ten-character tax identity. Most financial transactions are reported against it.

PFProvident FundPayroll

Retirement savings funded by the employee and the employer each month, deposited by the 15th of the next month.Related

Professional taxPayroll

A small tax on employment and professions levied by some states, deducted from salary. Rates and dates vary by state.Related

QRMPQuarterly Return Monthly PaymentGST

A scheme for businesses with turnover up to ₹5 crore: file GST returns quarterly while paying tax monthly.Related

RebateIncome tax

A reduction that cancels the tax of resident individuals whose taxable income is up to a set limit. Just above the limit, marginal relief stops the tax from jumping.Related

Reverse chargeGST

When the buyer, not the seller, pays the GST on a purchase, for certain goods and services listed by the government.

ROCRegistrar of CompaniesCompany

The office, under the Ministry of Corporate Affairs, with which companies and LLPs file their annual and event-based forms.Related

Self-assessment taxIncome tax

Tax you pay before filing your return, to clear whatever is still due after TDS and advance tax.

SPICe+Company

The single online form used to incorporate a company, which also applies for PAN, TAN and other registrations.Related

Standard deductionIncome tax

A flat deduction from salary income, with no proof needed. The amount differs between the old and new regimes.Related

TANTax deduction and collection account numberTDS

The number anyone who deducts or collects tax must have, and quote on every TDS payment and return.Related

Tax yearIncome tax

The Income-tax Act, 2025 uses a single “tax year” (April to March) in place of the older “previous year” and “assessment year”.

TCSTax collected at sourceTDS

Tax a seller collects from the buyer on certain sales and deposits with the government. The buyer claims it as credit.

TDSTax deducted at sourceTDS

Tax the payer deducts before paying you, such as your employer on salary or a client on professional fees. It is deposited with the government, and you claim it as credit.Related

TDS returnTDS

A quarterly statement of the TDS you deducted and deposited, with the PAN of each person you paid. It is what gives them credit.Related

TRACESTDS

The income tax department’s TDS portal, where TDS returns are processed, defaults are shown and certificates are downloaded.Related

UANUniversal account numberPayroll

An employee’s PF number, which stays the same across jobs.

Updated returnIncome tax

A way to correct a return after the usual deadlines to add income you missed, by paying the extra tax plus an additional amount.