Glossary
38 tax terms explained in plain language for Indian taxpayers. Tap any term for a simple breakdown and filing context.
38 of 38 terms
- PAN
Your 10-character Permanent Account Number from your PAN card.
- Date of birth
Used to determine senior-citizen slab benefits and 80TTB eligibility.
- Opt out of new tax regime
Choose old regime only if your Chapter VI-A deductions (80C, 80D, HRA, etc.) save more tax than the new regime's lower slabs.
- Salary income
Taxable salary after standard deduction, HRA/LTA exemptions, and professional tax.
- Basic salary
Core salary component — used to calculate HRA exemption.
- Exempt allowances u/s 10
HRA, LTA, and other allowances exempt under Section 10.
- Standard deduction u/s 16(ia)
Flat deduction from salary — ₹50,000 (old) or ₹75,000 (new regime).
- Professional tax u/s 16(iii)
State professional tax deducted from salary — fully deductible.
- House property income
Income or loss from owned property — rent minus 30% repairs minus home-loan interest.
- Home loan interest u/s 24(b)
Interest paid on home loan — capped at ₹2 lakh for self-occupied property (old regime).
- Other sources income
Bank FD interest, savings interest, dividends, and family pension.
- Gross total income
Sum of all income heads before Chapter VI-A deductions.
- Total Chapter VI-A deductions
Investments and expenses that reduce taxable income (old regime).
- Section 80C
EPF, PPF, ELSS, LIC, tuition fees, home-loan principal — combined cap ₹1.5 lakh.
- Section 80CCD(1B)
Additional NPS contribution by you — extra ₹50,000 over and above 80C cap.
- Section 80CCD(2)
Employer's NPS contribution — allowed in both old and new regime (up to 10% of basic).
- Section 80D
Health insurance premium for self/family and parents — limits vary by age.
- Section 80TTA
Deduction on savings account interest — up to ₹10,000 (below 60 years).
- Section 80TTB
Deduction on all interest income for senior citizens — up to ₹50,000.
- Section 80GG
Rent paid when HRA is not received — only if you don't own a house in the city.
- Section 80U
Deduction for taxpayer with disability — ₹75,000 or ₹1.25 lakh if severe.
- Total income
Gross total income minus deductions — your taxable income base.
- Tax on total income
Tax calculated on slab rates plus special-rate capital gains.
- Rebate u/s 87A
Tax rebate for lower incomes — up to ₹12,500 (old) or full rebate up to ₹12L (new).
- Health & education cess
4% surcharge on income tax and surcharge.
- Total taxes paid
TDS from Form 16/26AS plus advance tax and self-assessment tax.
- Tax payable
Amount you still owe after TDS credits.
- Refund
Excess TDS/advance tax — money returned by the department.
- TDS schedule
Tax already deducted by employer, bank, or broker — matched against 26AS.
- Advance/self-assessment tax
Tax you paid directly via challan before filing.
- Business/profession schedule
Profit from business or profession — presumptive (44AD/44ADA) or regular books.
- Capital gains schedule
Gains/losses from shares, mutual funds, property, and other assets.
- Presumptive business income u/s 44AD
8% of turnover (6% if digital) when turnover ≤ ₹2 crore — no books required.
- Presumptive profession income u/s 44ADA
50% of gross receipts when receipts ≤ ₹50 lakh — for doctors, lawyers, consultants, etc.
- Old tax regime
Higher slabs but full Chapter VI-A deductions and HRA exemption.
- New tax regime
Lower slabs and higher standard deduction — most VI-A deductions not allowed.
- Filing confidence
How complete your documents and inputs are — 100% means filing-ready in exact mode.
- Recommended ITR form
The correct return form based on your income mix and business type.