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Income Tax Glossary
Plain-English definitions of the terms you meet on your Form 16, AIS and income-tax return — for Assessment Year 2026-27 (income earned in FY 2025-26). Tap any term for a short, useful explanation with an illustrative example.
A
Advance TaxIncome tax paid in instalments during the year, rather than in one lump sum at the end. AIS (Annual Information Statement)A consolidated portal statement of your reported income, TDS, interest, dividends and high-value transactions. Assessment Year (AY)The year in which income earned in the previous financial year is assessed and the return is filed.E
e-VerificationThe step that validates a submitted return; without it the return is treated as not filed.F
Financial Year (FY)The 1 April to 31 March period in which you actually earn the income. Form 16The TDS certificate your employer issues for salary, in Part A and Part B. Form 26ASA tax-credit statement showing TDS, TCS, advance tax and self-assessment tax against your PAN.G
Gross Total Income (GTI)The sum of income under all five heads, before Chapter VI-A deductions.H
HRA (House Rent Allowance)A salary allowance for rent paid, partly exempt under the Old regime if you meet the conditions.I
Income Tax RefundMoney returned to you when tax paid (TDS, advance or self-assessment) exceeds your actual liability. ITR-VThe one-page acknowledgement generated after you submit your return.L
LTCG (Long-Term Capital Gains)Gains on assets held beyond the long-term threshold, taxed at special rates.P
Presumptive TaxationA simplified scheme (44AD / 44ADA / 44AE) that taxes a fixed presumed percentage of turnover.R
Section 87A RebateA rebate that reduces tax to nil for resident individuals up to a specified taxable income.S
Self-Assessment TaxAny balance tax you pay yourself before submitting the return, after TDS and advance tax. STCG (Short-Term Capital Gains)Gains on assets held for a short period, taxed at higher rates than long-term gains. Standard DeductionA flat deduction from salary or pension — ₹75,000 (New) or ₹50,000 (Old) for AY 2026-27.T
Taxable Income (Total Income)Gross total income after deductions — the figure your slab rates apply to. TCS (Tax Collected at Source)Tax a seller collects from a buyer on certain transactions and deposits against your PAN. TDS (Tax Deducted at Source)Tax deducted by a payer (employer, bank) before paying you, and credited against your PAN.Not tax advice. MyTaxLocker is independent software by MaxLeaf and is not affiliated with, endorsed by, or acting on behalf of the Income Tax Department, CBDT, or any government entity. This glossary is general information, not financial, tax, or legal advice. Definitions reflect AY 2026-27 (FY 2025-26); rules change between budgets. Verify the current position on the official portal.
Official sources: Income Tax e-Filing Portal · CBDT / Income Tax Department
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