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Tax & Accounting Glossary
Plain-language definitions of GST, income tax, NRI and international accounting terms.
- Advance tax
- Income tax paid in instalments during the financial year.
- AIS / 26AS
- Annual Information Statement and tax credit statement showing your income and TDS data.
- Assessment year (AY)
- The year following the financial year in which income is assessed (until FY 2025-26). The Income-tax Act 2025 uses 'tax year'.
- CGST / SGST / IGST
- Central, State and Integrated GST. CGST and SGST apply on intra-state supplies, IGST on inter-state supplies.
- DPIIT
- Department for Promotion of Industry and Internal Trade, which recognises startups.
- DTAA
- Double Taxation Avoidance Agreement between two countries.
- E-invoice / IRN
- A B2B invoice registered on the e-invoice portal with an Invoice Reference Number and QR code.
- E-way bill
- An electronic document required for movement of goods above a prescribed value.
- FEMA
- Foreign Exchange Management Act, governing foreign exchange transactions.
- Form 15CA / 15CB
- Declaration and CA certificate required for many foreign remittances.
- GSTIN
- Goods and Services Tax Identification Number: a 15-character number allotted to each GST registrant; the first two digits are the state code.
- GSTR-1
- Return of outward supplies (sales) filed by regular GST taxpayers.
- GSTR-2B
- Auto-drafted ITC statement based on suppliers' returns.
- GSTR-3B
- Summary return where tax liability, ITC and payment are declared.
- HSN
- Harmonised System of Nomenclature: a code that classifies goods for tax purposes.
- IMS
- Invoice Management System on the GST portal to accept, reject or hold invoices before GSTR-2B.
- ITC
- Input Tax Credit: credit for GST paid on business purchases, used to reduce GST payable.
- LLP
- Limited Liability Partnership: a hybrid structure with limited liability for partners.
- LUT
- Letter of Undertaking to export without paying IGST.
- MTD
- Making Tax Digital: UK system requiring digital records and software-based filing.
- NRE / NRO / FCNR
- NRI bank accounts: NRE for foreign earnings, NRO for Indian income, FCNR(B) for foreign-currency deposits.
- NRI
- Non-Resident Indian: an Indian citizen or PIO who is non-resident in India for tax purposes.
- OSS / IOSS
- EU One Stop Shop and Import One Stop Shop schemes simplifying VAT for cross-border B2C sales.
- PAN / TAN
- Permanent Account Number for taxpayers; Tax Deduction and Collection Account Number for deductors.
- Presumptive taxation
- Simplified taxation on deemed profit under sections 44AD, 44ADA and 44AE.
- QRMP
- Quarterly Return Monthly Payment scheme for small taxpayers.
- RNOR
- Resident but Not Ordinarily Resident: a transitional status with relief on foreign income.
- ROC
- Registrar of Companies, which administers company filings.
- SAC
- Services Accounting Code: a code that classifies services for GST.
- Section 195
- Provision requiring TDS on payments to non-residents, including property sale by NRIs.
- Section 87A rebate
- A rebate that reduces tax to nil for resident individuals under specified income limits.
- Tax year
- The single year concept under the Income-tax Act 2025 from 2026-27.
- TDS / TCS
- Tax Deducted / Collected at Source.
- TRC / Form 10F
- Tax Residency Certificate and the form used to claim treaty benefits in India.
- VAT
- Value Added Tax, the consumption tax used in the UK, EU, UAE and many other countries.
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