CS Executive Tax Laws key terms

Any person by whom income tax, or any other sum of money, is payable under the Income-tax Act, including a person deemed to be an assessee for assessment, reassessment, or collection purposes.

Under section 2(31), includes an individual, HUF, company, firm, LLP, association of persons, body of individuals, local authority, and artificial juridical person; the unit whose income is taxed.

The period of twelve months commencing on 1 April following the previous year, in which income earned in that previous year is charged to tax.

The financial year immediately preceding the assessment year in which the assessee's income was earned; the year whose income is assessed in the following assessment year.

An individual who stays in India 182 days or more in the previous year, or 365 days over four preceding years plus 60 days, subject to the deemed-resident rule for citizens visiting India.

A resident who was resident in India in at least two of the ten preceding years and stayed in India 730 days or more during the seven preceding years; taxed on global income.

An individual who fails the basic 182-day test and the alternate 365+60 day test; taxable in India only on income received or accruing in India and specified foreign-sourced Indian business income.

The statutory rule in section 5 fixing which incomes enter total income, based on residential status and on whether income is received, accrues in India, or is foreign income of a resident.

A flat deduction of Rs 50,000 (Rs 75,000 under the default new regime) from salary income under section 16(ia), allowed irrespective of actual expenditure incurred by the employee.

Allowance granted to meet rent paid; exempt under section 10(13A) to the least of actual HRA, 50% (metro) or 40% of salary, and rent paid minus 10% of salary.

Remuneration received by an employee from an employer for services rendered, chargeable under the head Salaries on a due or receipt basis, whichever is earlier.

The notional figure on which house property income is computed: the higher of expected rent and actual rent received, subject to municipal tax deduction and the 30% standard deduction.

A house used by the owner for own residence; its annual value is treated as nil, and interest on a housing loan is deductible up to Rs 2 lakh for a self-occupied house.

A house property rented to a tenant, taxed on actual rent received or receivable, with 30% standard deduction and full loan interest allowed as a loss offset.

A deduction under section 32 for the decline in value of plant, machinery, or buildings used in business, computed on the written-down value of a block of assets.

A group of assets of the same class (building, plant, machinery, furniture) on which the same rate of depreciation applies; sale proceeds reduce the block's written-down value.

An extra 20% depreciation on new plant and machinery (excluding ships, aircraft, and specified excluded items) acquired and installed by a manufacturing or power undertaking.

Property of any kind held by an assessee, whether or not connected with business, excluding stock-in-trade, personal effects, rural agricultural land, and specified gold bonds.

Gain on transfer of a capital asset held beyond the statutory holding period (12 months for listed securities, 24 months for immovable property, 36 months for other assets).

Gain on transfer of a capital asset held for not more than the prescribed holding period; taxed at normal slab or specified rates without indexation benefit.

The cost of acquisition multiplied by the cost inflation index of the year of transfer divided by the index of the year of acquisition, used to compute long-term capital gains.

A notified index number for each financial year, used to adjust the cost of a long-term capital asset for inflation before computing the taxable gain.

A scheme taxing business or professional income on a deemed percentage of turnover or gross receipts (sections 44AD, 44ADA, 44AE) without detailed books of account.

Records of income, expenditure, receipts, and payments maintained by a taxpayer; compulsory for specified businesses and professions crossing turnover thresholds under section 44AA.

An audit of accounts under section 44AB required when business turnover exceeds Rs 1 crore (Rs 10 crore with digital receipts and payments) or professional receipts exceed Rs 50 lakh.

Amounts subtracted from gross total income under sections 80C to 80U, such as LIC premiums, PPF, medical insurance, and interest on education loans, subject to caps.

The aggregate of income computed under the five heads after set-off of intra-head and inter-head losses, before Chapter VI-A deductions and rebates.

Gross total income reduced by Chapter VI-A deductions, rounded off to the nearest ten rupees; the figure on which tax is computed at slab or special rates.

A tax rebate for resident individuals whose total income does not exceed the prescribed limit, capped at a fixed amount, applied against income tax before cess.

Tax paid in instalments during the previous year (15 June, 15 September, 15 December, 15 March) on income other than salary, based on estimated annual income.

Tax withheld by a payer at the time of making specified payments or credits, deposited with the government and reflected in the payee's Form 26AS and AIS.

An annual consolidated tax statement showing TDS, TCS, advance tax, self-assessment tax, and specified financial transactions linked to the taxpayer's PAN.

A ten-character alphanumeric identifier issued by the income tax department, mandatory for filing returns, opening accounts, and high-value transactions.

The prescribed form in which a taxpayer declares income, deductions, and taxes paid; mandatory for companies, audit cases, and individuals above the basic exemption limit.

A return filed after the original due date but before 31 December of the assessment year (or before completion of assessment), attracting late fees and loss restrictions.

Under GST, includes sale, transfer, barter, exchange, licence, rental, lease, and disposal made for consideration in the course or furtherance of business, plus specified schedules.

The statutory location that determines whether a transaction is intra-state (CGST plus SGST) or inter-state (IGST), based on supplier and recipient location rules.

The point at which GST liability arises, generally the earlier of invoice date or payment date for goods, and invoice or provision of service for services.

Credit available to a registered person for GST paid on inward supplies used in business, claimed through GSTR-2B and subject to section 16 conditions and section 17 apportionment.

A monthly or quarterly self-assessed summary return in which a registered taxpayer reports outward supplies, input tax credit claimed, and net tax payable.

An electronic document required for movement of goods exceeding the notified value, containing consignment details and a validity period for transport.

Under customs law, the transaction value of imported goods plus freight and insurance, adjusted as prescribed, on which basic customs duty is levied.

Duty levied under section 12 of the Customs Act on goods imported into or exported from India, at rates specified in the First and Second Schedules.

The declaration filed by an importer giving particulars of imported goods, their value, and duty payable; assessed before clearance from the customs station.

The first appellate authority before whom an assessee aggrieved by an assessment order appeals within 30 days, deciding on facts and law.

The second appellate tribunal hearing appeals against CIT(A) orders and certain orders of the Commissioner, on questions of fact and law.

The power of the Commissioner to revise, on application or suo motu, an order passed by a subordinate authority, where no appeal has been preferred.

A written determination by the Board for Advance Rulings on the tax liability of a non-resident or specified applicant, binding on the applicant and the department.

A fixed place of business through which a non-resident enterprise carries on business in another country, giving the source state taxing rights over attributable profits.

A bilateral treaty allocating taxing rights between two countries and providing relief from double taxation through exemption or foreign tax credit.

Relief under section 90 or 91 for tax paid in a foreign country on income also taxed in India, limited to the Indian tax attributable to that income.

A levy on specified digital transactions, including online advertisements and e-commerce supplies by non-resident operators to Indian residents, collected without input credit.

A test treating a non-resident as having taxable business connection in India based on revenue thresholds, user numbers, or data downloads, even without physical presence.

Arranging affairs within the framework of law to reduce tax liability legitimately, using deductions, exemptions, and timing, as distinct from evasion or colourable devices.

Provisions in Chapter X-A allowing the tax department to disregard an arrangement whose main purpose is tax benefit and which lacks commercial substance.

Illegal concealment or misrepresentation of income or liability, such as non-disclosure or false claims, attracting penalties and prosecution under the Act.