Plain-English definitions of every term we use across AboutAll.in — taxation, salary structure, EPF/NPS, mutual funds, capital gains, Gulf expat finance, and a few AI terms. Last reviewed May 2026.
A government-generated statement on the income tax portal showing all reported financial activity tagged to your PAN — salary, bank interest, dividends, MF redemptions, property transactions, large purchases. Reconcile with your Form 16 before filing ITR.
APY (Atal Pension Yojana)
A government pension scheme for the unorganised sector. See our APY guide.
Assessment Year (AY)
The 12-month period (1 April – 31 March) following the FY in which income is assessed and ITR is filed. AY 2026-27 is when you file ITR for income earned in FY 2025-26. Full guide.
B
Basic Salary
The fixed core component of CTC, typically 40-50% of total package. Forms the basis for EPF, gratuity, and HRA calculation. See salary structure guide.
Bonus
Discretionary or performance-linked payment from employer, fully taxable as salary in the year of receipt. Bonus tax guide.
C
Capital Gains
Profit from selling a capital asset (equity, MF, property, gold). Taxed at different rates depending on holding period and asset class. Full guide.
CBDT (Central Board of Direct Taxes)
Apex regulatory body for Indian direct taxes. Issues circulars and notifications interpreting the Income Tax Act.
CIBIL Score
Credit score from TransUnion CIBIL, ranging 300-900. Above 750 is considered very good. Improve your score.
CTC (Cost to Company)
Total annual cost an employer bears for an employee — base + allowances + employer PF + insurance + perquisites. Different from in-hand salary; see explainer.
D
DA (Dearness Allowance)
Cost-of-living adjustment paid to salaried employees, typically in government / public sector. Forms part of "Basic + DA" used for EPF and gratuity calculations.
DTAA (Double Taxation Avoidance Agreement)
Treaty between two countries to avoid taxing the same income twice. India has DTAAs with 90+ countries. Critical for NRIs working in the Gulf, US, UK. See NRI tax guide.
E
ELSS (Equity Linked Savings Scheme)
Tax-saving equity mutual fund with 3-year lock-in. Eligible under Section 80C. 80C guide.
EPF (Employee Provident Fund)
Mandatory retirement savings scheme for salaried employees. 12% of Basic+DA from employee + matching employer contribution. Complete EPF guide.
EPS (Employees Pension Scheme)
A portion (8.33% capped) of employer\'s EPF contribution that funds your post-retirement monthly pension.
EOSB (End of Service Benefits)
Gratuity-like payout in Gulf countries. Calculation varies by country. See Qatar EOSB and UAE EOSB.
ESOP (Employee Stock Option Plan)
Right to buy company shares at a pre-set price. Taxed at exercise (perquisite) and at sale (capital gains). ESOP tax guide.
F
Financial Year (FY)
1 April – 31 March in India. Income earned during the FY is assessed in the next AY.
FOIR (Fixed Obligations to Income Ratio)
Ratio of total monthly EMI commitments to net monthly income. Banks typically cap at 50% for home loan eligibility. Home loan guide.
Form 16
Annual TDS certificate issued by employer to salaried employee. Part A: TRACES summary; Part B: salary computation. Form 16 guide.
Form 26AS
Tax credit statement showing all TDS, TCS and tax payments mapped to your PAN. Cross-check with Form 16 before filing ITR.
Form 15G / 15H
Self-declarations to avoid TDS on bank interest if your annual income is below taxable limit (15G) or you are a senior citizen with nil tax liability (15H). Form 15G/15H guide.
G
Gratuity
Lump sum paid by employer at exit after 5+ years of continuous service. Tax-exempt up to Rs. 20 lakh. Gratuity guide.
GST (Goods and Services Tax)
India\'s indirect tax on goods and services, replacing earlier VAT/Service Tax/Excise. Slabs of 5%, 12%, 18%, 28%.
H
HRA (House Rent Allowance)
Salary component for rented accommodation. Partly tax-exempt under Section 10(13A). HRA guide.
HUF (Hindu Undivided Family)
A separate tax entity formed by a Hindu, Sikh, Jain, or Buddhist family. Has its own PAN and tax slabs. HUF guide.
I
Iqama
Saudi Arabia residence permit for expatriates. Required for working, banking, and renting in KSA. Renewal guide.
ITR (Income Tax Return)
Annual filing on the Income Tax portal. Different forms (ITR-1 to 7) for different taxpayer types. Filing guide.
Indexation
Adjustment of cost basis for inflation when computing long-term capital gains. Removed for most asset classes by Budget 2024 except grandfathered property.
L
LTA (Leave Travel Allowance)
Salary component for travel during personal leave within India. Exempt twice in a 4-year block, with conditions.
LRS (Liberalised Remittance Scheme)
RBI scheme allowing resident Indians to remit up to USD 250,000 per year abroad. 20% TCS applies above Rs. 7 lakh annual remittance.
M
Mutual Fund
Pooled investment vehicle managed by AMCs. Categories: equity, debt, hybrid, international, ELSS. Tax guide.
N
NPS (National Pension System)
Defined-contribution retirement scheme regulated by PFRDA. Tier I (mandatory, lock-in till 60) and Tier II (optional, no lock-in). Tier comparison.
NRI (Non-Resident Indian)
Indian citizen who spends 182+ days outside India during a financial year. Different tax treatment than residents. NRI tax guide.
NRE / NRO Account
NRE: rupee account funded by foreign earnings; tax-free, repatriable. NRO: rupee account for India-source income; taxable.
P
Perquisite
Non-cash benefit given by employer (company car, accommodation, etc.). Taxed under Rule 3 valuation. Perquisite guide.
PPF (Public Provident Fund)
15-year government savings scheme with 80C deduction and tax-free interest. Comparison.
Professional Tax
State-level tax on salaried employees and professionals, capped at Rs. 2,500/year. State rates.
R
RNOR (Resident but Not Ordinarily Resident)
Transitional residency status for returning NRIs, lasting 2-3 years. Foreign income remains tax-free.
S
Section 80C
Income tax deduction up to Rs. 1.5 lakh for ELSS, PPF, EPF, NSC, life insurance, home loan principal, etc. 80C guide.
Section 80D
Deduction for health insurance premiums up to Rs. 50,000-1,00,000. 80D guide.
Section 24(b)
Deduction up to Rs. 2 lakh for home loan interest on self-occupied property.
SCSS (Senior Citizen Savings Scheme)
8.2% government-backed scheme for 60+ Indians, up to Rs. 30 lakh investment. SCSS guide.
SIP (Systematic Investment Plan)
Auto-debit-based mutual fund investing on a regular schedule. SIP guide.
SSY (Sukanya Samriddhi Yojana)
Tax-free savings scheme for girl children under 10. SSY guide.
STCG / LTCG
Short-Term Capital Gains and Long-Term Capital Gains, defined by holding period thresholds that vary by asset class.
T
TDS (Tax Deducted at Source)
Tax withheld at the time of payment by the payer (employer, bank, etc.) and deposited with the government. TDS on salary.
TRACES
TDS Reconciliation Analysis and Correction Enabling System — government portal where TDS is filed and Form 16/16A are generated.
U
UAN (Universal Account Number)
12-digit ID for EPFO members. Stays with you across employers. EPF guide.
ULIP (Unit Linked Insurance Plan)
Hybrid insurance + investment product. Lock-in 5 years. vs Mutual Funds.
V
VDA (Virtual Digital Asset)
Cryptocurrency, NFTs, and tokens — taxed at flat 30% with 1% TDS. Crypto tax guide.
VPF (Voluntary Provident Fund)
Voluntary contribution above the mandatory 12% EPF, going into the same EPF account.