Spinal
Tax glossary
Every abbreviation you meet while filing, in plain English. The agent handles all of this for you; this is here for when you want to know what a term means.
Filing basics
- ITRIncome Tax Return
- The form you file each year declaring your income and the tax on it. The form number (ITR-1 to ITR-4 for individuals) depends on your income types.
- AYAssessment Year
- The year in which last year's income is assessed and filed. Income earned in FY 2024-25 is filed in AY 2025-26.
- FYFinancial Year
- The year in which you earn the income, 1 April to 31 March. Also called the previous year.
- PANPermanent Account Number
- Your 10-character tax ID. Every figure the department holds is matched against it.
- ITR-1 (Sahaj)Income Tax Return form 1
- For a resident with salary, one house property, and small other income, up to ₹50 lakh total.
- ITR-2Income Tax Return form 2
- For income that ITR-1 cannot hold: capital gains, more than one house, foreign assets, or income above ₹50 lakh, with no business income.
- ITR-3Income Tax Return form 3
- For income that includes profits from a business or profession with regular books.
- ITR-4 (Sugam)Income Tax Return form 4
- For a small business or profession filing under the presumptive schemes (44AD / 44ADA).
- e-verifyElectronic verification
- Confirming the filed return is really yours, by Aadhaar OTP or net banking, within 30 days of filing. Without it the return is treated as never filed.
- ERIe-Return Intermediary
- A service authorised by the department to file returns on a taxpayer's behalf through the portal.
The records checked against
- AISAnnual Information Statement
- The department's record of your income, gathered from banks, your employer, registrars and others. The agent matches every figure in your return against it.
- TISTaxpayer Information Summary
- A simplified, category-wise summary derived from the AIS.
- Form 26ASAnnual Tax Statement
- The official tally of tax already paid against your PAN (TDS, advance tax, self-assessment tax). Tax that appears here is credit you can definitely claim.
- Form 16TDS certificate (salary)
- The certificate your employer gives, showing your gross salary and the tax deducted from it.
- Form 16ATDS certificate (non-salary)
- The TDS certificate for non-salary payments such as interest or professional fees.
Tax paid and tax relief
- TDSTax Deducted at Source
- Tax cut from your income before you receive it (by an employer, bank or payer) and deposited against your PAN.
- TCSTax Collected at Source
- Tax collected by a seller on certain purchases (e.g. a foreign tour, a high-value car) and credited against your PAN.
- Advance taxAdvance tax
- Tax paid in instalments during the year when your liability after TDS exceeds ₹10,000.
- SATSelf-Assessment Tax
- The balance tax you pay yourself, with a challan, before filing if TDS and advance tax did not cover the full bill.
- Rebate 87ASection 87A rebate
- A rebate that brings tax to nil for lower incomes (up to ₹7 lakh under the new regime, ₹5 lakh under the old).
- SurchargeSurcharge
- An extra percentage on tax for high incomes, in slabs starting above ₹50 lakh.
- CessHealth and Education Cess
- A flat 4% added on top of tax (plus surcharge) to fund health and education.
- ChallanTax payment challan
- The receipt generated when you pay tax online. Its number is entered when you file.
- BSR codeBasic Statistical Return code
- A code identifying the bank branch on a tax-payment challan.
Common deductions (mostly old regime)
- 80CSection 80C
- Up to ₹1,50,000 for investments and payments like EPF, PPF, ELSS, life insurance, principal on a home loan and children's tuition.
- 80CCD(1B)Section 80CCD(1B)
- An extra ₹50,000 for your own contribution to the NPS, over and above 80C.
- 80CCD(2)Section 80CCD(2)
- Your employer's NPS contribution, capped at a percentage of basic salary. Allowed in both regimes.
- 80DSection 80D
- Health-insurance premium: up to ₹25,000 for yourself and family, plus up to ₹50,000 for senior-citizen parents.
- 80ESection 80E
- Interest paid on an education loan, with no upper limit, for up to 8 years.
- 80GSection 80G
- Donations to eligible funds and charities, at 50% or 100%, some capped at 10% of income.
- 80TTASection 80TTA
- Up to ₹10,000 of savings-account interest, for those below 60.
- 80TTBSection 80TTB
- Up to ₹50,000 of all deposit interest (savings + FD), for resident senior citizens.
- 24(b)Section 24(b)
- Home-loan interest: up to ₹2,00,000 on a self-occupied home; uncapped on a let-out one.
- HRAHouse Rent Allowance
- A salary allowance that is partly exempt if you pay rent. The exempt share is higher (50% vs 40% of basic) in the metro cities.
- Standard deductionStandard deduction
- A flat deduction from salary (₹50,000 old regime, ₹75,000 new for AY 2025-26), claimed automatically.
Capital gains and crypto
- STCGShort-Term Capital Gain
- Gain on an asset sold within its short-term holding period (e.g. listed shares held under 12 months).
- LTCGLong-Term Capital Gain
- Gain on an asset held beyond the short-term period, usually taxed at a lower rate.
- 111ASection 111A
- STCG on listed equity and equity mutual funds. 15% before 23 Jul 2024, 20% on or after.
- 112ASection 112A
- LTCG on listed equity and equity mutual funds, exempt up to ₹1,25,000 a year, then 10% (12.5% on or after 23 Jul 2024).
- 112Section 112
- LTCG on other assets such as property, gold and debt funds.
- 115BBHSection 115BBH
- Crypto and other virtual digital assets, taxed at a flat 30% with no loss set-off and no indexation.
- VDAVirtual Digital Asset
- Crypto, NFTs and the like, taxed under section 115BBH.
- IndexationIndexation
- Adjusting an asset's purchase cost for inflation to reduce the taxable long-term gain (where still allowed).
Status and other terms
- RORResident and Ordinarily Resident
- A resident taxed on worldwide income.
- RNORResident but Not Ordinarily Resident
- A transitional resident status, taxed mainly on Indian income.
- NRNon-Resident
- Taxed only on income earned or received in India.
- HUFHindu Undivided Family
- A family treated as a single taxpayer with its own PAN.
- Schedule FASchedule Foreign Assets
- The ITR schedule where a resident reports foreign bank accounts, overseas shares (incl. RSUs/ESPP) and foreign property. Mandatory even for small holdings.
- GTIGross Total Income
- The sum of income under all heads, before deductions.
- EPF / PPFEmployees' / Public Provident Fund
- Retirement savings that qualify under 80C.
- NPSNational Pension System
- A retirement scheme with deductions under 80CCD(1B) and 80CCD(2).
General explanations for AY 2025-26, not tax advice. Limits and rates can change year to year.