Glossary of Tax & Compliance Terms (A–Z)

A

AATO (aggregate annual turnover): Under GST, the aggregate turnover of the previous financial year, worked out for all registrations under the same PAN. It decides matters such as e-invoicing and eligibility for the quarterly QRMP scheme (up to ₹5 crore). GST due date calendar →
Advance tax: Income tax paid in instalments during the year in which the income is earned, where the tax for the year after TDS and TCS is ₹10,000 or more. The instalments are 15%, 45%, 75% and 100% by 15 June, 15 September, 15 December and 15 March; presumptive-scheme taxpayers under 44AD / 44ADA pay the full amount by 15 March. Advance tax calculator →
AGM (annual general meeting): The yearly meeting of a company's members at which the financial statements are adopted. After the first AGM, it must be held within six months of the end of the financial year (so by 30 September for a March year end), with no more than 15 months between two AGMs. One Person Companies do not have to hold one. ROC due date calendar →
AIS (Annual Information Statement): A statement on the income-tax e-filing portal showing the financial transactions reported about a taxpayer, such as salary, interest, dividends, securities trades and TDS. It is worth checking against your own records before filing a return.
AOC-4: The MCA e-form for filing a company's audited financial statements with the Registrar of Companies, due within 30 days of the AGM. Late filing attracts an additional fee of ₹100 per day. MCA late fee calculator →
Assessment year (AY): Under the Income-tax Act, 1961, the year following the financial year in which income is earned and assessed; income of FY 2025-26 is assessed in AY 2026-27. The Income-tax Act, 2025 replaces this with the single idea of a tax year. Income Tax Act 2025 guide →
Audit trail (edit log): From 1 April 2023, every company must keep its books in accounting software that records an edit log of each change to a transaction, with the date. The auditor reports on whether this feature worked throughout the year.

B

Belated return: An income-tax return filed after the due date but within the permitted time, which for AY 2026-27 is up to 31 December 2026. A late fee under Section 234F applies. Late fee (234F) calculator →
Bill of supply: The document a composition taxpayer, or a supplier of exempt goods or services, issues instead of a tax invoice. It does not show GST charged.
Bonus (statutory): The annual bonus payable under the Code on Wages to employees earning up to ₹21,000 a month. It is calculated on ₹7,000 a month or the minimum wage, whichever is higher, and is paid within eight months of the year end. Bonus calculator →
BRC / eBRC (bank realisation certificate): A certificate from the exporter's bank confirming that export proceeds have been received. Export value must be realised within the period set by RBI, which is 9 months (12 months if invoiced in rupees) for exports from 1 October 2026. Export proceeds tracker →

C

CIN (Corporate Identity Number): The 21-character identification number the Registrar of Companies allots to a company on incorporation. It appears on the certificate of incorporation, letterheads and invoices.
CMP-08: The quarterly statement-cum-challan through which a composition taxpayer pays GST, due by the 18th of the month after each quarter. GST due date calendar →
Composition scheme: An optional GST scheme for small taxpayers within the turnover limits, who pay tax at a fixed rate on turnover. They cannot collect GST from customers or claim input tax credit, and they file CMP-08 quarterly and GSTR-4 yearly. GST registration checker →
Compounding (FEMA): A way of settling a contravention of FEMA by applying to RBI and paying a compounding amount, instead of facing penalty proceedings. It is governed by the Foreign Exchange (Compounding Proceedings) Rules, 2024. FEMA penalty estimator →
CSR (corporate social responsibility): Under Section 135 of the Companies Act, a company with net worth of ₹500 crore, turnover of ₹1,000 crore or net profit of ₹5 crore in the immediately preceding financial year must spend at least 2% of its average net profit of the last three years on specified activities.

D

DIN (Director Identification Number): A unique 8-digit number the Ministry of Corporate Affairs allots to every individual who is or wants to become a director. It stays valid for life unless surrendered or deactivated. DIN and DSC eligibility →
DIR-3 KYC: The KYC filing every DIN holder makes to keep the DIN active. From 31 March 2026 it is filed once every three financial years, by 30 June; a missed filing deactivates the DIN and a ₹5,000 fee applies. DIN KYC reminder →
DPIIT recognition: Recognition of an entity as a startup by the Department for Promotion of Industry and Internal Trade, subject to limits on age and turnover. It is the gateway to Startup India benefits such as the Section 80-IAC tax holiday (Section 140 under the 2025 Act). Startup India registration →
DPT-3: An annual return in which a company reports deposits and money received that is not treated as a deposit, as at 31 March. It is due by 30 June. ROC due date calendar →
DSC (digital signature certificate): An electronic signature issued by a licensed certifying authority, used to sign MCA forms, income-tax filings and other online submissions. DIN and DSC eligibility →
DTAA (double taxation avoidance agreement): A tax treaty between India and another country that decides which country may tax an item of income and at what rate, so the same income is not fully taxed twice.

E

E-invoice: A B2B invoice reported to the GST Invoice Registration Portal, which returns an Invoice Reference Number (IRN) and QR code. It applies to taxpayers whose aggregate turnover in any year from FY 2017-18 exceeds ₹5 crore. GST invoice generator →
E-way bill: An electronic document generated on the GST e-way bill portal before goods are moved, generally where the consignment value exceeds ₹50,000.
ECB (external commercial borrowing): A loan an Indian entity raises from an overseas lender under RBI rules. Since February 2026 the limit is the higher of USD 1 billion or 300% of net worth; Form ECB 1 is filed before drawdown and Form ECB 2 within 7 days of each month end. ECB compliance calculator →
ECR (electronic challan-cum-return): The monthly return an employer uploads on the EPFO portal to report each employee's wages and PF contributions and generate the payment challan, due by the 15th of the following month. PF calculator →
EPF (Employees' Provident Fund): The retirement savings scheme run by EPFO. Employer and employee each contribute 12% of basic wages and dearness allowance, on wages up to ₹25,000 a month from 17 September 2026. PF calculator →
EPS (Employees' Pension Scheme): The pension scheme funded from 8.33% of wages out of the employer's 12% PF contribution, calculated on wages up to the wage ceiling. The rest of the employer share goes to EPF. PF calculator →
ESI (Employees' State Insurance): Medical and cash-benefit insurance for employees earning up to ₹21,000 a month, funded by contributions of 0.75% from the employee and 3.25% from the employer, paid by the 15th of the following month. ESI calculator →

F

FC-GPR: The form an Indian company files on the RBI FIRMS portal to report shares issued to a foreign investor, within 30 days of allotment. FEMA due dates →
FC-TRS: The form that reports a transfer of shares between a resident and a non-resident, filed within 60 days of the transfer or of the receipt or remittance of funds, whichever is earlier. FEMA due dates →
FDI (foreign direct investment): Investment by a person resident outside India in an Indian company's equity instruments. Depending on the sector it is allowed under the automatic route or needs government approval, up to a sectoral cap. FDI eligibility checker →
Financial year (FY): The year from 1 April to 31 March used for accounts, income tax, GST and company law. FY 2026-27 runs from 1 April 2026 to 31 March 2027.
FLA return: The annual return on foreign liabilities and assets that an Indian company or LLP with inward or outward foreign investment files with RBI by 15 July. FEMA due dates →
Form 121: The single declaration that replaces Forms 15G and 15H from Tax Year 2026-27, which lets an individual with no tax liability receive interest or dividends without TDS. Form 15G / 15H (Form 121) checker →
Form 16 / Form 130: The certificate an employer issues to each employee showing salary paid and tax deducted. Under the Income-tax Rules, 2026 it becomes Form 130 from Tax Year 2026-27. Section and form finder →
Form 26AS / Form 168: The annual tax statement showing TDS, TCS and tax paid against a PAN. Under the 2026 Rules it becomes Form 168. Section and form finder →

G

Gratuity: A lump sum payable to an employee on leaving after at least five years of continuous service, or after one year for a fixed-term employee. For employees other than government employees it is tax-exempt up to ₹20 lakh. Gratuity calculator →
GSTIN: The 15-character GST identification number: a two-digit State code, the holder's PAN, an entity number and check characters. A business has a separate GSTIN in each State where it is registered. GST registration checker →
GSTR-1: The GST statement of outward supplies, due by the 11th of the following month for monthly filers or the 13th after the quarter for QRMP taxpayers. GST due date calendar →
GSTR-2B: An auto-drafted, read-only statement of the input tax credit available to a buyer, built from its suppliers' GSTR-1 filings. Credit claimed in GSTR-3B is generally matched against it. GST ITC calculator →
GSTR-3B: The GST summary return in which tax is paid, due by the 20th of the following month for monthly filers, or the 22nd or 24th after the quarter (24th for Delhi) for QRMP taxpayers. GST liability calculator →
GSTR-9 / GSTR-9C: The GST annual return (GSTR-9) and the self-certified reconciliation statement (GSTR-9C), due by 31 December after the year end. GSTR-9 is generally required above ₹2 crore turnover and GSTR-9C above ₹5 crore. GST late fee calculator →

H

HRA (house rent allowance) exemption: Under the old regime, part of the HRA received is exempt: the lowest of the HRA received, rent paid minus 10% of salary, and 50% of salary in specified metro cities (40% elsewhere). The list of 50% cities grows from four to eight from Tax Year 2026-27. HRA calculator →
HSN and SAC codes: The classification codes for goods (HSN) and services (SAC) used on GST invoices and returns, which also decide the rate of tax. GST rate finder →

I

IEC (Importer Exporter Code): The 10-character code issued by the Directorate General of Foreign Trade that a business needs to import or export. It is the same as the business's PAN.
IFF (invoice furnishing facility): An optional facility for QRMP taxpayers to upload B2B invoices for the first two months of a quarter by the 13th of the next month, so that their buyers can claim credit sooner. GST due date calendar →
INC-20A: The declaration of commencement of business that a company with share capital files within 180 days of incorporation, confirming that subscribers have paid for their shares. ROC due date calendar →
Income-tax Act, 2025: The law that replaced the Income-tax Act, 1961 from 1 April 2026, for Tax Year 2026-27 onwards. Most rates are unchanged, but section numbers, forms and TDS payment codes are new. Income Tax Act 2025 guide →
ITC (input tax credit): Credit for GST paid on purchases, set off against GST payable on sales. It needs a valid invoice, receipt of the goods or services, the supplier's filing reflected in GSTR-2B and the tax paid by the supplier, and must be claimed by 30 November after the year end or the annual return, if earlier. GST ITC calculator →
ITR-U (updated return): A return filed to report income that was missed or wrongly reported, on payment of additional tax. It can be filed within 48 months from the end of the relevant assessment year. Income tax due dates →

L

LRS (Liberalised Remittance Scheme): The RBI scheme under which a resident individual can send up to USD 250,000 abroad in a financial year for permitted purposes such as education, travel and investment. TCS may apply above certain amounts. LRS tracker →
LUT (letter of undertaking): A yearly undertaking filed on the GST portal (Form RFD-11) that lets an exporter make exports or SEZ supplies without paying IGST.

M

MGT-7 / MGT-7A: The annual return of a company, filed with the Registrar within 60 days of the AGM. Small companies and One Person Companies use the shorter MGT-7A. MCA late fee calculator →
Minimum wages: The lowest wages that must be paid for a category of work, fixed by the Centre and the States, many of which revise them periodically for dearness allowance. In Delhi, from 1 April 2025, the monthly rate for unskilled workers is ₹18,456. Minimum wages calculator →
MSME-1: A half-yearly return in which a company reports amounts owed to micro and small enterprise suppliers for more than 45 days. It is due by 30 April and 31 October. ROC due date calendar →

N

New tax regime: The default income-tax regime, with lower slab rates but few deductions. Slabs rise every ₹4 lakh up to ₹24 lakh, the standard deduction is ₹75,000 and a rebate makes income up to ₹12 lakh tax-free. Regime comparison tool →

O

Old tax regime: The optional income-tax regime with higher slab rates that still allows deductions such as 80C, 80D, HRA and home-loan interest. Whether it suits you depends on how much you can claim. Regime comparison tool →
OPC (One Person Company): A private company with a single member. It does not have to hold an AGM and files the shorter annual return MGT-7A. Small company checker →

P

PAN (Permanent Account Number): The 10-character identification number issued by the Income Tax Department. It is needed to file returns, open bank accounts and for many financial transactions, and most individuals must link it with Aadhaar.
PAS-3 (return of allotment): The form a company files within 30 days of allotting shares or other securities, giving details of the allottees. MCA late fee calculator →
PMT-06: The challan a QRMP taxpayer uses to pay GST for the first two months of a quarter, by the 25th of the following month. GST due date calendar →
Presumptive taxation (44AD / 44ADA / 44AE): Schemes under which eligible small businesses, professionals and goods-carriage owners declare income at a fixed percentage of turnover or per vehicle, without keeping full books. Under the 2025 Act they are in Section 58. Advance tax calculator →
Professional tax: A tax on employment and professions levied by some States, usually deducted by employers from salary. Delhi does not levy it.

Q

QRMP scheme: Quarterly Return Monthly Payment: an option for GST taxpayers with aggregate turnover up to ₹5 crore to file GSTR-1 and GSTR-3B quarterly while paying tax monthly through PMT-06. GST due date calendar →

R

RCM (reverse charge mechanism): A GST rule under which the buyer, not the supplier, pays the tax on specified goods and services, such as legal services from an advocate or goods transport agency services. GST RCM checker →
Rebate (Section 87A, now Section 156): A tax rebate for resident individuals with lower incomes. Under the new regime it is up to ₹60,000, making income up to ₹12 lakh tax-free, with marginal relief just above that. Income tax calculator →
Revised return: An income-tax return filed to correct an earlier return. For AY 2026-27 a return can be revised up to 31 March 2027, with a Section 234-I fee for revisions after 31 December 2026. Income tax due dates →
ROC (Registrar of Companies): The office under the Ministry of Corporate Affairs that registers companies and LLPs and receives their statutory filings through the MCA21 portal. ROC due date calendar →

S

SBO (significant beneficial owner): An individual who ultimately holds or controls at least 10% of a company, directly or indirectly. The SBO declares this in BEN-1 and the company files BEN-2 with the Registrar within 30 days.
Small company: A private company with paid-up capital up to ₹10 crore and turnover up to ₹100 crore, other than excluded classes such as holding and subsidiary companies. It enjoys lighter compliance. Small company checker →
SPICe+: The MCA web form for incorporating a company. It combines name reservation, incorporation, DIN, PAN, TAN and other registrations in one application. Incorporation cost calculator →
Standard deduction: A flat deduction from salary or pension income, without proof of expenses. It is ₹75,000 under the new regime. Income tax calculator →

T

TAN (Tax Deduction and Collection Account Number): The 10-character number every person who deducts or collects tax at source must obtain and quote in TDS and TCS payments, statements and certificates. TDS calculator →
Tax audit (Section 44AB, now Section 63): An audit of a business or profession's accounts for income-tax purposes, required when turnover or receipts exceed set limits (₹1 crore for business, ₹10 crore if cash transactions are within 5%, ₹50 lakh for professionals). The report is due one month before the return. Tax audit guide →
Tax year: The term used by the Income-tax Act, 2025 for the financial year in which income is earned, replacing the separate "previous year" and "assessment year". Tax Year 2026-27 runs from 1 April 2026 to 31 March 2027. Income Tax Act 2025 guide →
TCS (tax collected at source): Tax a seller or other specified person collects from the buyer on certain transactions, such as some foreign remittances under LRS, and deposits with the government. Quarterly TCS statements are filed in Form 143 from Tax Year 2026-27. LRS tracker →
TDS (tax deducted at source): Tax the payer deducts when paying salary, rent, fees, contract payments, interest and other specified sums, and deposits by the 7th of the following month (30 April for March). Quarterly statements are filed in Forms 138, 140 and 144 from Tax Year 2026-27. TDS calculator →

U

UDIN (Unique Document Identification Number): An 18-digit number generated on the ICAI portal for every certificate or report a Chartered Accountant signs. It can be verified on udin.icai.org.
Udyam registration: The free online registration of a micro, small or medium enterprise on the Udyam portal, based on investment and turnover. It is used to claim MSME benefits, including protection against delayed payments.

X

XBRL: A machine-readable format in which certain companies, such as listed companies and those with paid-up capital of ₹5 crore or more or turnover of ₹100 crore or more, must file financial statements with the MCA. ROC due date calendar →

Glossary of tax and compliance terms

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