Digital Wallet

A virtual platform that stores payment information, such as credit and debit cards, enabling users to make electronic transactions.

Micro, Small, and Medium Enterprises (MSME)

Businesses classified by the Indian government based on their investment in plant, machinery, and equipment, receiving various benefits and support.

Indian Financial System Code (IFSC)

A unique, 11-digit alphanumeric code used to identify bank branches for electronic funds transfers in India.

Prompt Corrective Action (PCA)

A regulatory framework used by the RBI to monitor and take corrective actions for weak banks, ensuring financial stability.

Financial Stability and Development Council (FSDC)

An apex body in India responsible for financial sector development, stability, and coordination among financial regulators.

Bank for International Settlements (BIS)

An international financial institution that fosters cooperation among central banks and provides financial stability recommendations.

Reserve Bank of India (RBI)

The central bank of India, responsible for formulating monetary policy, regulating the financial system, and ensuring financial stability.

Prime Lending Rate (PLR)

The interest rate charged by banks to their most creditworthy customers, often used as a reference rate for other loans.

Marginal Cost of Funds Based Lending Rate (MCLR)

An internal reference rate used by banks to determine interest rates on loans, based on the marginal cost of funds and other factors.

Base Rate

The minimum interest rate set by the Reserve Bank of India, below which banks cannot lend to customers, except under specific circumstances.

Statutory Liquidity Ratio (SLR)

The minimum percentage of a bank's total deposits that must be held in liquid assets, such as cash, gold, or government securities.

Cash Reserve Ratio (CRR)

The minimum percentage of a bank's total deposits that must be held as reserves with the central bank (Reserve Bank of India).

Credit Rating

An assessment of an individual's or entity's creditworthiness, based on their financial history and ability to repay debt.

Small Savings Schemes

Government-backed savings programs, such as PPF, KVP, and SSY, offering secure investment options with tax benefits.

Bank Guarantee

A financial guarantee provided by a bank on behalf of a customer, ensuring payment or performance of a contractual obligation.

Automatic Investment Plan (AIP)

An investment strategy that automatically invests a fixed amount in a specific investment vehicle, such as mutual funds, at regular intervals.

Trading Account

An account used by investors to buy and sell securities in the stock market, linked to a Demat account for settlement purposes.

Public Provident Fund (PPF)

A long-term, government-backed savings scheme in India, offering tax benefits and a fixed return on investment.

Demat Account

An account used to hold shares and securities in electronic format, enabling investors to trade in the stock market without physical certificates.

Recurring Deposit (RD)

A type of savings instrument where customers deposit a fixed amount every month for a predetermined period, earning interest.

Fixed Deposit (FD)

A type of savings instrument where funds are deposited for a fixed term, offering higher interest rates than regular savings accounts.

Nomination Facility

A service offered by banks and financial institutions, allowing account holders to nominate a person to receive their assets in the event of their death.

Deposit Insurance and Credit Guarantee Corporation (DICGC)

A subsidiary of the Reserve Bank of India, providing insurance for bank deposits up to a certain limit.

Cheque Truncation System (CTS)

An electronic system that enables faster clearing of cheques by transmitting images and data, rather than physical cheques.

Unified Payments Interface (UPI)

A real-time payment system in India, enabling multiple bank accounts into a single mobile application for seamless transactions.

Immediate Payment Service (IMPS)

A real-time, interbank electronic funds transfer service in India, available 24/7 for transferring money instantly.

National Electronic Funds Transfer (NEFT)

A nationwide electronic funds transfer system in India, enabling the transfer of funds between banks and financial institutions.

Real Time Gross Settlement (RTGS)

A high-value, electronic funds transfer system in India, enabling real-time settlement of transactions between banks.

Bank Passbook

A physical or electronic record provided by a bank, detailing transactions and balances for a specific account.

Overdraft Facility

A service that allows account holders to withdraw more money than they have in their account, up to a pre-set limit.

Customer Information File (CIF)

A unique identifier assigned by banks to each customer, containing personal, financial, and account-related information.

Know Your Customer (KYC)

A regulatory requirement for banks and financial institutions to verify the identity of customers and prevent illegal activities.

Sweep-In Facility

A feature that links a savings account to a fixed deposit, automatically transferring excess funds to earn higher interest.

Foreign Currency Non-Resident (FCNR) Account

A type of NRI account that holds foreign currency deposits, protecting against exchange rate fluctuations.

Non-Resident External (NRE) Account

A type of NRI account used to hold and manage foreign income in India, allowing for tax-free interest and repatriation of funds.

Non-Resident Ordinary (NRO) Account

A type of NRI account used to manage income earned in India, such as rent or dividends, and subject to Indian tax laws.

Joint Account

A bank account shared by two or more individuals, allowing all parties to deposit, withdraw, and manage funds.

Non-Resident Indian (NRI) Account

A bank account specifically designed for Indian citizens living abroad, offering various types of accounts and services.

Savings Account

A deposit account held at a bank or financial institution, allowing customers to save money and earn interest.

Zero Balance Account

A type of savings account that doesn't require a minimum balance, allowing customers to maintain the account with no balance.

Current Account

A deposit account designed for businesses and individuals with frequent transactions, offering limited or no interest.

Form ITR-V

An acknowledgement form generated after e-filing an income tax return, which must be verified to complete the process.

Dividend Distribution Tax (DDT)

A tax levied on dividends paid by a company to its shareholders, abolished in India as of April 1, 2020.

Kisan Vikas Patra (KVP)

A government-backed savings scheme in India, offering a fixed return on investment with no tax benefits.

Pay As You Earn (PAYE)

A system where employers withhold income tax and other statutory deductions from employees' salaries and remit them to the government.

Tax Refund

A reimbursement of taxes paid by a taxpayer when the actual tax liability is less than the taxes paid during the financial year.

Transfer Pricing

The price at which goods or services are exchanged between related entities within a multinational corporation, subject to tax regulations.

Tax Holiday

A temporary reduction or suspension of taxes granted by the government to encourage investment or economic activity.

Form 49AA

The application form used by foreign citizens or entities to apply for a Permanent Account Number (PAN) in India.

Form 49A

The application form used by Indian citizens or entities to apply for a Permanent Account Number (PAN).

Income Declaration Scheme (IDS)

A voluntary scheme allowing taxpayers to declare previously undisclosed income and pay a penalty to avoid prosecution.

Tax Credit

An amount that can be offset against a taxpayer's tax liability, typically for specific expenses or investments.

Minimum Alternate Tax (MAT)

A tax levied on companies in India that pay little or no tax due to exemptions, deductions, or incentives.

Form 16A

A certificate issued by a deductor, providing details of tax deducted at source (TDS) for income other than salary.

Tax Deduction Account Number (TAN)

A 10-digit alphanumeric number issued to individuals or entities responsible for deducting or collecting tax at source.

Tax Bracket

Income ranges that are taxed at different rates under a progressive tax system, such as the one in place in India.

Tax-Free Bonds

Bonds issued by government-backed entities, offering interest income exempt from income tax.

Form 24Q

A quarterly statement filed by employers in India, detailing tax deducted at source (TDS) from employees' salaries.

Capital Loss

The loss incurred when a capital asset, such as an investment or real estate, is sold for a lower price than its purchase price.

High Net Worth Individual (HNI)

A person with significant investable assets, typically used by financial institutions to classify wealthy clients.

Tax Residency Certificate (TRC)

A document issued by the tax authorities of a country, certifying an individual's or entity's tax residency status for claiming tax treaty benefits.

Double Taxation Avoidance Agreement (DTAA)

A tax treaty between two countries to avoid taxing the same income twice and to prevent tax evasion.

Sukanya Samriddhi Yojana (SSY)

A government-backed savings scheme for the girl child, offering tax benefits and a secure, fixed return on investment.

Form 10E

A form used to claim relief for salary arrears or advance salary under Section 89(1) of the Income Tax Act.

Tax Identification Number (TIN)

A unique number assigned to taxpayers for identification and tracking purposes, often used in the context of business entities.

Wealth Tax

A tax imposed on the net wealth of an individual, based on the market value of their assets minus their liabilities.

Gift Tax

A tax levied on the transfer of assets or money to another person without receiving something of equal value in return.

Tax Withholding

The practice of deducting taxes from an individual's or entity's income as it is earned, rather than collecting it later.

Tax Relief

A reduction in tax liability granted by the government under certain conditions, such as natural disasters or economic hardship.

Tax Compliance

The act of adhering to tax laws, regulations, and requirements, including filing accurate and timely tax returns.

Indirect Tax

A tax collected by an intermediary, such as a retailer, and passed on to the government, such as GST or sales tax.

Direct Tax

A tax paid directly by an individual or entity to the government, such as income tax or corporate tax.

Tax Notice

A communication from the Income Tax Department, requesting additional information or clarification on a taxpayer's filed return.

Tax Audit

An examination of an individual's or entity's tax returns by the Income Tax Department to ensure accuracy and compliance.

Form 60

A declaration form submitted by individuals who do not have a PAN card, when entering into certain financial transactions.

Cost Inflation Index (CII)

An index used to account for inflation when calculating long-term capital gains tax on the sale of certain assets.

Tax Avoidance

The use of legal methods to minimize tax liability, such as taking advantage of tax deductions and exemptions.

Tax Evasion

The illegal act of not paying taxes owed, through methods such as underreporting income or hiding assets.

Tax Exempt Investments

Investment vehicles that generate income not subject to income tax, such as certain government bonds or schemes.

Assessment Year (AY)

The 12-month period following the financial year, during which income earned in the previous financial year is assessed for tax purposes.

Financial Year (FY)

A 12-month period used for financial reporting and budgeting, running from April 1st to March 31st in India.

Taxable Income

The portion of an individual's or entity's income subject to income tax after accounting for deductions and exemptions.

National Pension System (NPS)

A government-sponsored pension scheme that allows individuals to make contributions towards their retirement fund.

Employee Provident Fund Organization (EPFO)

The government body responsible for regulating and overseeing the Employee Provident Fund scheme in India.

Form 15G/15H

Declarations submitted by individuals to banks or financial institutions, requesting non-deduction of TDS on interest income.

Income Tax Return (ITR)

The forms used to file tax returns, declaring an individual's or entity's income, deductions, and tax payable or refundable.

Form 12B

A statement of income and tax deductions provided by a new employee to their employer, to ensure accurate TDS calculation.

Professional Tax

A tax levied by some state governments in India on individuals earning a salary or practicing a profession.

Senior Citizen Savings Scheme (SCSS)

A government-backed savings scheme for senior citizens, offering tax benefits and a secure, fixed return on investment.

Mutual Funds

A type of investment vehicle where multiple investors pool their money, managed by a professional fund manager.

Equity-Linked Savings Scheme (ELSS)

A type of tax-saving mutual fund, offering tax benefits under Section 80C of the Income Tax Act.

Systematic Investment Plan (SIP)

A method of investing in mutual funds by making equal, periodic investments over a specified period.

Aadhaar Card

A unique identification number issued by the Indian government to residents, linked to biometric and demographic data.

Tax Collected at Source (TCS)

A method of collecting tax on certain transactions, collected by the seller from the buyer at the time of sale.

Tax Deducted at Source (TDS)

A method of collecting income tax by deducting it from the income earned, at the time of payment.

Permanent Account Number (PAN)

A unique, 10-digit alphanumeric identifier, issued to taxpayers in India by the Income Tax Department.

Capital Gains Tax

A tax on the profit made from the sale of capital assets, such as stocks, real estate, or other investments.

Goods and Services Tax (GST)

A comprehensive, indirect tax levied on the manufacture, sale, and consumption of goods and services in India.

Section 10(14)

A section of the Income Tax Act that allows exemptions for certain allowances and benefits received by an employee.

Section 80D

A section of the Income Tax Act that allows deductions for premium payments made towards health insurance policies.