Browse 34 essential itr filing terms and definitions used by professionals in India.
Term Index
Open any term below for a dedicated definition page.
Annual Information Statement is a comprehensive report provided by the Income Tax Department of India that consolidates financial transaction details reported by various entities like banks, employers, And investment platforms. It helps taxpayers verify income, taxes paid.
Assessment Year is the 12-month period starting on April 1 and ending on March 31 of the next calendar year, during which the income earned in the previous financial year is assessed, taxed, And filed with the Income Tax Department of India. It's the year in which taxpayers report, calculate.
Capital Asset is any property owned by a taxpayer, whether connected to their business or not, that has value and can be sold for profit. This includes land, buildings, vehicles, jewelry, stocks, bonds, mutual funds, And intellectual property like patents or trademarks. However, certain items like personal effects, agricultural land in rural areas.
CPC is the Centralised Processing Centre of the Income Tax Department in India. CPC automates the handling of income tax returns, notices, And refunds without manual intervention, ensuring faster processing, fewer errors.
Section 80C lets Indian taxpayers cut taxable income by up to ₹1.5 lakh each year. It covers life insurance, provident funds, And tuition fees.
e-Filing is the electronic submission of income tax returns and related documents to the Income Tax Department of India through its official online portal or authorized third-party websites. E-Filing eliminates the need for physical paperwork, speeds up processing.
Form 15G is a self-declaration form prescribed under the Income Tax Act, 1961, that resident individuals below 60 years of age and Hindu Undivided Families (HUFs) submit to request non-deduction of Tax Deducted at Source (TDS) on certain incomes. Form 15G applies only when the total income is below the taxable limit and the tax liability is zero for the financial year.
Form 15H is a self-declaration form used by resident senior citizens (aged 60 years or above) in India to request banks or financial institutions not to deduct Tax Deducted at Source (TDS) on their interest income. Form 15H applies when the total income of the senior citizen is below the taxable limit, ensuring no unnecessary tax is deducted at the source.
Form 16 is a paper from your boss in India. It shows your pay and tax taken from it. It proves your pay and tax. It helps you file taxes and get money back if too much tax was taken.
Form 26AS is an annual consolidated tax statement issued by the Income Tax Department of India. It shows details of tax deducted at source (TDS), tax collected at source (TCS), advance tax paid, self-assessment tax, And high-value transactions linked to a taxpayer’s Permanent Account Number (PAN). Form 26AS helps verify tax credits before filing income tax returns.
Income Tax Act 1961 is the primary law in India that governs the levy, collection, administration, And enforcement of income tax. It defines taxable income, tax rates, exemptions, deductions, And procedures for filing returns, assessments, And appeals for individuals, businesses.
Income Tax Department is the government agency responsible for administering and enforcing income tax laws in India. It collects taxes from individuals and businesses, processes income tax returns, conducts audits, And ensures compliance with the Income Tax Act, 1961. The department operates under the Ministry of Finance and plays a key role in funding public services and national development.
Income Tax Slab is income Tax Slabs are predefined ranges of annual income set by the Indian government that determine the tax rate applicable to an individual or entity. Each slab has a different tax rate, with higher income ranges attracting progressively higher rates, ensuring a graduated taxation system based on earning capacity.
ITR is the Income Tax Return form that individuals, businesses, And other entities in India must file with the Income Tax Department to report their income, deductions, taxes paid, And tax liability for a financial year. ITR forms vary based on the type of taxpayer and income sources.
Long-term Capital Gain is the profit earned from selling a capital asset, such as property, stocks, Or mutual funds, after holding it for more than 12 months (or 24/36 months for certain assets). This gain is taxed at a lower rate than short-term gains under Indian tax laws, with exemptions and deductions available in specific cases.
Notice under Section 143(1) is an automated intimation sent by the Income Tax Department after processing an income tax return (ITR) to confirm adjustments, refunds, Or tax demands. It checks arithmetic errors, incorrect claims.
Notice under Section 148 is a formal communication issued by the Income Tax Department of India to inform a taxpayer that their income for a particular assessment year has escaped assessment. This notice requires the taxpayer to file a revised return or provide explanations for the income not previously reported, enabling the department to reassess tax liability.
Permanent Account Number is a unique 10-character alphanumeric identifier issued by the Income Tax Department of India to track financial transactions and tax-related activities. Permanent Account Number serves as proof of identity for individuals, businesses.
Presumptive Taxation Scheme is a simplified tax calculation method under the Income Tax Act, 1961, allowing small businesses and professionals to pay tax on estimated income instead of actual profits. It reduces compliance burden by eliminating the need for detailed bookkeeping and audits for eligible taxpayers.
Return Filing Due Date is the last day by which taxpayers in India must submit their Income Tax Return (ITR) to the Income Tax Department without incurring penalties or late fees. This date varies based on the type of taxpayer, such as individuals, businesses.
Section 194A is a provision under the Income Tax Act, 1961, that mandates tax deduction at source (TDS) on interest payments other than interest on securities. Section 194A applies when interest exceeds ₹40,000 in a financial year for individuals and ₹5,000 for others, ensuring advance tax collection on interest income.
Section 194C is a rule in the Income Tax Act, 1961. It says you must take tax from payments to contractors. This tax is called TDS. It applies to people and firms.
Section 194H is a provision under the Income Tax Act, 1961, that mandates Tax Deducted at Source (TDS) on commission or brokerage payments exceeding ₹15,000 in a financial year. It applies to individuals or entities making such payments, requiring them to deduct 5% TDS before paying the recipient and deposit it with the government.
Section 194I is part of the Income Tax Act, 1961. It says you must take tax from rent over ₹2,40,000 each year. It works for people, HUFs, And firms. They pay rent for land, buildings, machines, Or tools. The tax rate is 10% most times. Some deals may have lower rates.
Section 194J is a provision under the Income Tax Act, 1961, that mandates tax deduction at source (TDS) on payments made for professional or technical services, royalty, Or remuneration to directors. It applies at a rate of 10% on payments exceeding ₹30,000 in a financial year, ensuring tax compliance for service-based transactions.
Short-term Capital Gain is the profit earned from selling a capital asset held for 36 months or less, Or 12 months or less for certain assets like shares or mutual funds, under Indian tax laws. This gain is added to the taxpayer’s total income and taxed at the applicable income tax slab rate.
TAN is a 10-digit alphanumeric code issued by the Income Tax Department of India to individuals or entities responsible for deducting or collecting tax at source. TAN stands for Tax Deduction and Collection Account Number and is mandatory for all deductors under the Income Tax Act, 1961, to quote in TDS or TCS returns, payments.
Tax Audit checks a taxpayer’s books. It makes sure records are right. It follows the Income Tax Act, 1961. It reports income the right way. Tax Audit is needed for some businesses and workers in India. They must meet rules in Section 44AB of the Act.
Tax Collected at Source is a tax that sellers collect from buyers at the time of sale and deposit with the government. It applies to specific goods and services under the Income Tax Act, 1961, ensuring tax compliance on high-value transactions. The collected amount appears in the buyer’s Form 26AS and can be claimed as credit while filing income tax returns.
TDS is a tax the Indian government takes from income when it is paid. The payer takes a small part of the payment. They send it to the government for the person who earns the money.
Tax Exemption is a provision under the Income Tax Act, 1961, that allows certain incomes, transactions, Or taxpayers to be excluded from taxable income. Tax Exemption reduces the total income on which tax is calculated, lowering the tax liability without directly reducing the tax rate. It applies to specific sources like agricultural income, dividends.
Tax Rebate cuts the tax you owe. The government gives it to some taxpayers. It lowers the tax bill. Sometimes it cuts tax to zero. Rebates are not like deductions. Deductions cut taxable income. Rebates cut the tax you pay. They help low-income earners or some groups in India.
TDS is a tax collection method where tax is deducted at the source of income before the recipient receives payment. TDS applies to salaries, interest, rent, professional fees, And other payments under the Income Tax Act, 1961. The deductor remits the tax to the government.
TRACES is a web tool made by India’s Income Tax Department. It helps people and firms see and get TDS and TCS papers. It also helps manage these papers. TRACES makes tax info clear and easy to find.