Finance, Tax & Legal Dictionary

Searchable dictionary of finance, tax, accounting and legal terms with statutory references.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All

56 items

Accrual BasisRecording income and expenses when they are earned or incurred, not when cash moves.Advance TaxIncome tax paid in instalments during the year instead of at the end.Aggregate TurnoverTotal value of all supplies of a PAN across India, used for thresholds.Assessment Year (AY)The year after the financial year in which income is assessed and the return is filed.Book BuildingA process to discover an IPO price from investor bids within a price band.CAGRThe average yearly growth rate of an investment over a period.Capital AssetProperty of any kind held by a person, with listed exclusions.CompanyA business entity incorporated under the Companies Act.Composition SchemeA simple scheme for small taxpayers to pay GST at a low fixed rate.CSR (Corporate Social Responsibility)Mandatory social spending by larger companies.Current RatioA measure of short-term liquidity.DINDirector Identification Number: a unique ID for company directors.DTAAA treaty between two countries to avoid taxing the same income twice.E-invoiceAn invoice reported to the government's Invoice Registration Portal to get an IRN.E-way BillAn electronic document needed to move goods above a value limit.EBITDAEarnings before interest, tax, depreciation and amortisation.Form 26AS / AISStatements showing tax credits and financial transactions reported against your PAN.Going ConcernThe assumption that a business will continue operating in the foreseeable future.Health and Education CessA 4% levy on income tax plus surcharge.HSN / SACCodes that classify goods (HSN) and services (SAC) for GST rates.IEC (Import Export Code)A 10-digit code needed to import or export.IndexationAdjusting purchase cost for inflation using a government index.Input Tax Credit (ITC)GST paid on business purchases that can be set off against GST payable on sales.IPOWhen a company first offers its shares to the public.LLP (Limited Liability Partnership)A partnership with limited liability for partners.Long-term Capital GainProfit from selling an asset held longer than the short-term limit.LUT (Letter of Undertaking)A form that lets exporters supply without paying IGST.MaterialityHow significant a misstatement is to users of financial statements.NAV (Net Asset Value)The per-unit price of a mutual fund.New Tax RegimeThe default lower-rate tax regime with very few deductions.NPA (Non-performing Asset)A loan on which interest or principal is overdue for more than 90 days.Old Tax RegimeThe original tax regime that allows deductions like 80C, 80D and HRA.One Person Company (OPC)A company with a single member.PANPermanent Account Number: a 10-character ID issued by the Income Tax Department.Permanent Establishment (PE)A fixed place of business that makes a foreign company taxable in a country.Place of SupplyThe location that decides whether CGST+SGST or IGST applies.Presumptive TaxationPaying tax on a fixed percentage of turnover instead of keeping detailed books.Previous YearThe financial year in which income is earned (under the 1961 Act).Private CompanyA company that restricts share transfers and has at most 200 members.Rebate under section 87AA tax reduction that makes tax nil for resident individuals below an income limit.Repo RateThe rate at which RBI lends short-term funds to banks.Reverse Charge Mechanism (RCM)When the buyer, not the seller, pays GST to the government.Short-term Capital AssetAn asset held for a short period before sale.SIP (Systematic Investment Plan)Investing a fixed amount in a mutual fund at regular intervals.Standard DeductionA flat deduction from salary income without proof of expenses.SupplyThe taxable event under GST: sale, transfer, barter, lease and similar transactions.SurchargeAn extra tax on income tax for high incomes.TANTax Deduction and Collection Account Number, needed by anyone who deducts or collects tax at source.Tax AuditAn audit of accounts required for businesses and professionals above specified limits.Tax YearThe single year concept that replaces 'previous year' and 'assessment year' under the new Act.TCS (Tax Collected at Source)Tax collected by the seller from the buyer on specified transactions.TDS (Tax Deducted at Source)Tax cut by the payer before making certain payments and deposited with the government.True and Fair ViewFinancial statements that are free from material misstatement and fairly presented.Udyam RegistrationFree government registration for micro, small and medium enterprises.Working CapitalMoney needed to run day-to-day operations.XIRRAnnualised return for investments with cash flows on different dates.

Information published by ArthaKara Consulting Services is intended for general educational and informational purposes. It is based on the statutory provisions and official information referenced on the respective page as of its stated verification date. Laws, rules, notifications and regulatory interpretations may change. Readers should independently verify the applicable provisions and seek professional advice before taking action. ArthaKara is an independent professional information and consulting platform and is not a government website or government-endorsed portal.