Any income generated from carrying on business or profession is Business Income/ Receipts.

Business Income / Receipts

Any expense incurred other than capital expenditure or personal expense to carry on the day to day activities of a business or profession is treated as business expense.

Business Expense

Any asset owned by a person for carrying on the business/ profession is termed as business asset.

Business Assets

Loans taken or money borrowed for the purpose of carrying on business or profession is termed as a business liability.It also includes any obligation arisen during the course of carrying on business / profession.

Business liabilities

Books of accounts includes ledgers, day books, cash books, account books, and other books whether kept in the written form or as print outs of data stored in a floppy, disc, tape or any other form.

Books of accounts

Block of Assets means group of Similar assets eligible to claim depreciation together.

Block of Assets

Bonus share is a share or a security which is allotted to you without making any payment on the basis of shares or securities already held by you. Cost of such shares shall be taken as NIL.

Bonus share

Unpaid purchase price is treated as borrowed capital assuming that price is unpaid due to non availability of funds or availability of lesser funds, which need to be arranged through borrowings.

Borrowed capital

House Property means a property which is either let out or used for own Residential purpose.

House Property

House rent allowance is an amount provided by employer to employee on account of getting accomodation on rental basis.It is a chargeable income over and above specified limit.

House rent Allowance

Higher education means full-time studies for a graduate or post-graduate course in engineering, medicine, management; or for post-graduate course in applied sciences, or pure sciences, including mathematics and statistics. It also includes any other field of studies including vocational studies which can be done after passing senior secondary examination or it's equivalent from any school, Board, university recognized by the Central/ state Govt. or local/any other authority authorized by them.

Higher Education

Higher education means full time studies for graduate or post graduate course in engineering, medicine, management, applied sciences, pure sciences including mathematics and statistics. It also includes any other field of studies including vocational studies which can be done after passing senior secondary examination or it's equivalent from any school, Board, university recognized by the Central/ state Govt. or local/any other authority authorized by them.

Advance Tax means any Tax paid by the assessee on his estimated income before the end of financial year if such income is chargeable to tax .The amount of advance tax payable should be calculated by deducting TDS from tax due on the income .

Advance Tax

Annual Rent means the actual rent received or to be received if the property is let out.

Annual Rent

Arrears of rent means an amount of rent relating to earlier years but received by a person during the current year as the amount was agreed by the tenant to be paid, but not paid in earlier years . This is different from the unrealized rent in the sense that there is no doubt about receiving arrears.

Arrears of Rent

Annual income earning capacity, i.e., the annual letable value of your house property, as fixed by the local authorities, is termed as municipal valuation. This valuation is made to charge the house tax and is generally less than the present market value.

Annual Municipal Value

Annual Fair value is the amount which is generally charged as rent for letting of the similar house properties in the same area

Annual Fair value

Annual Rent Control value is the maximum rent which a person can legally recover from the tenant under a Rent Control Act.

Annual rent Control Value

In Accrual basis of accounting income is reported in the fiscal period, when you earn it, regardless of when you receive the income; and Expenses are deducted in the fiscal period you incur them, whether you paid them in that period or not. Incur usually means you either paid or will have to pay the expense.

Accrual Accounting

Any capital expenditure made to acquire resources used wholly to carry on the business or profession for a long period is termed as asset . Assessee can claim depreciation on theses assets.

Assets

Annuity or Pension is an annual income received by employee from his employer.It may be paid by employer voulantarily or on account of some contractual arrangement.

Annuity or Pension

Allowance is an amount received by an individual, paid by his/her employer in addition to his salary. These allowances are taxable, except in few situations where they are entitled as deduction/ exemption.

Allowances

An assessee is a person who is liable for the assessment of the income earned during the year and pay tax on that income.

Assessee

Assessment year may be defined as a year in which the income of the previous year is to be assessed.

Assessment Year

Adjusted GTI is :GTI Less(1)	LTCG, if included in GTI and STCG under 10% category;(2)	Income which is exempt;&nbsp;(3)	deductions under 80C to 80U except 80G;(4)	income of foreign company.

Adjusted GTI u/s 80G

Cash Accounting is a method of accounting in which income is reported when money is actually received and an expense is deducted when money is paid out.

Cash Accounting

Following persons are required to maintain compulsory books of Accounts:-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; (i) Any Person carrying on a specified profession having gross receipts exceeding Rs 1,50,000 in all the 3 years,&nbsp; immediately preceding the previous year .&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)Any Person carrying on non specified profession/business having gross receipts/turnover exceeding Rs 1,20,000/Rs 10,00,000 respectively in any of the 3 years,&nbsp; immediately preceding the previous year ,&nbsp;

Compulsory Maintenance of Accounts

If a person is carrying on business/ Profession and his total sales, turnover or receipts from such business or profession exceeds Rs 60 Lacs/ Rs 15Lacs respectively during the previous year then he is required to get the accounts audited by a Chartered Accountant.In case of a person covered by Presumptive taxation,if he claims that his income is less than the limits specified then he is required to get the accounts audited.

Compulsory Audit of Accounts

Conveyence/Transport Allowance is an amount paid by employer to employee for coming and going back from office to his residence. It will be exempt upto Rs. 800 per month.

Conveyence/ Transport Allowance

Employees share of contribution in Provident fund will be exempt.

Contribution in Provident Fund

COA is the Cost at which an asset is purchased or Acquired by assessee.

Cost of Acquisition 

Cost of improvement means an expenditure incurred by assessee for making improvement in the asset.

Cost of Improvemnet

CGAS is a scheme in which an assessee can deposit consideration received from the sale of asset either for a time till money is used for the desired purpose or for a specific period.The money needs to be deposited before filing the Return if exemption from Capital Gain is to be claimed.

Capital Gain Account Scheme (CGAS)

Capital Asset means any asset other than stock in trade,Personal effects not being jewellery,rural  agriculture land.

Capital Asset

When income of one person is added in the income of some other person who will be taxed for such additional income aslo then this is known as clubbing of income.e.g. Income of a minor is clubbed in the income of parents.

Clubbing of Income

When any sum is found to be credited in the books of an assessee and the assessee offers no explanation about the nature and source thereof or the explanation offered by him in the opinion of the assessing officer is not satisfactory,the sum so credited may be charged to income tax as the income of the assessee of that previous year.

Cash Credits 

If any house property is given on rental basis along with assets like furniture etc, then the total rent received by owner shall be called as composite rent. If&nbsp; composite rent can be segregated then rent for house property shall be treated as house property income and rent belonging to furniture&nbsp; is treated as income from other source.

Composite rent 

If a loss during the year can neither be set off under the same head nor under any other head of income , then such amount of loss is carried forward to subsequent years .

Carry forward of loss

A person who is liable to pay tax on the capital gain due to sale of some capital asset can claim exemption if he invests in buying or constructing a new property or agricultural land within a specified time. However if he wishes to invest but has not been able to find a suitable deal he can deposit the amount in a special account known as Capital Gains deposit Accounts scheme of a bank before the due date of filing his return of income. He is required to attach a proof of deposit along with the return of income. Amount utilized by him for the purchase or construction of the new house along with the amount so deposited shall be deemed to the cost of the new house.

Capital gain deposit account scheme

Composite rent means rent received for property includes rent for the usage of assets such as rent for usage of furniture, air conditioner or rent for providing additional services such as security charges, etc.

Composite rent

Casual income is a non recurring income that is not likely to occur again in a year. It is an income which is earned by chance. Such income is neither anticipated nor provided for in any agreement. Such incomes are received at uncertain times.

Casual income

Any day to day expenditure incurred for carrying on business is revenue expenditure. Any expenses incurred for making an addition to a business, the benefit of which will be derived over a period of time, is capital expenditure.

Capital expenditure

Family pension means a regular monthly income paid by the employer to a family member of an employee in the event of his/her death. Family pension is taxable after allowing a deduction of 33.33% or Rs. 15000, whichever is less. Family pension to the family of armed forces personnel including para military forces is not taxable where the death of such person has occurred in the course of operational duties.

Family Pension

Any accommodation which is well equipped with furniture and fixtures and is ready to use is termed as furnished accommodation.

Furnished Accommodation

Financial Institution means a banking company or notified institution such as HDFC Ltd. / Credila Financial Services Private Ltd.


Financial institution 

Exemption are those Incomes which are otherwise taxable but on which assessee is not required to pay tax .It will not be included while computing income of an assessee. 

Exemption

Entertainment allowance is an allowance which is allowed by government companies to their employees.

Entertainment Allowance

Securities provided by employer to employee to retain them with their company for long time and to appreciate their work

Employee Stock option Plan (ESOP)

Equity oriented fund is a fund in which more than 65% of fund value is invested in equity shares.

Equity oriented Funds

Income under capital gains arising on the transfer of certain assets can be exempt from income tax if investments are made in assets specified by the Income Tax department. Long-term capital gains from securities (shares, debentures, and bonds) are eligible for exemption from income tax if a person has made investment in bonds of NHAI or REC. Exemption is also available if he has invested in a residential house (assuming that he did not own more than one house already).

Exemption under capital gain

Employer is a person who hires services of other person for some consideration .

Employer

Glossary

Gift means a sum of money received in cash or in kind by a person without consideration .

Gift

Gratuity is an amount paid by the employer to the employee at the time of his retirement either to him or to his legal heirs in the case of death of employee.

Gratuity

Gain is the difference between the price originally paid for the investment and money received upon selling it.

Gain

Any money or property received without consideration or for an inadequate consideration is a gift.

A government hospital includes any dispensary/hospital run by the Government or a local authority for the medical treatment of government servants and their family members.

Government Hospital

Deemed owner means a Person who transfers the property without adequate consideration to the spouse / minor child OR the holder of impartible estate OR a member of co-operative society, company,association of persons to whom the property is allotted or leased under it's House building scheme OR a person who gets the control over property in part performance of the contract of the nature referred in sec 53A of the Transfer of Property Act or by virtue of such transactions as are referred in sec 269UA.

Deemed Owner

When any payment is made in the form of loan or advance to a shareholder by a closely held company (private company), outside the ordinary course of business and the company is not involved in money lending business, then such payment is treated as deemed dividend. Deemed dividend are exempt from tax in the hands of receipent.

Deemed Dividend

If a person has made certain payments or investments, then such payments are deducted from his Gross income so as to reduce the tax liability.

Deduction

If you are a resident individual and have paid tax on any income which accrued outside India, in any country with which there is an agreement for relief of double taxation, then you are allowed a relief from tax payable in India. The amount of relief is equal to the tax calculated on such income at the India tax rates, or the applicable tax paid in the foreign country, whichever is less

Double Taxation Avoidance Aggrement

A dependent means any person who is dependent for his support or maintenance on someone. For the purpose of 80D, a dependant will not include dependent brothers and sisters of you or your spouse. In addition, your spouse's parents can not be included in dependents for this section.

Dependent

Depreciation is a non cash expense that reduces the value of asset as a result of normal wear and tear, age or obsolescence. All the assets are charged to depreciation at a specified rate. If an asset is purchased during the year and is used for the purpose of carrying on business for a period of 180 days or more then it is charged to depreciation at full rate, otherwise it shall be half of the normal rate.

Depreciation

It is a tax which is to be borne by a person upon whom tax is levied. In other words its burden cannot be shifted to any other person. Like income tax is a tax which is to born by a person on whose income it is levied.

Direct tax

Any capital expenditure incurred by an assessee on Construction , on a rented/hired building, such capital expenditure will be treated as deemed Building. Assessee can claim depreciation on such capital expenditure.

Deemed Building 

Derivative is a security whose price is dependent upon or derived from one or more underlying assets.eg, share, index, commodities, currency exchange prices.

Derivatives

If a company is not in a money lending business, and it makes a payment in the form of loan or advance to a shareholder or a concern otherwise than in the ordinary course of business, such payment is treated as deemed dividend for the purpose of Income From Other Sources.

Deemed dividend

Disability includes blindness, mental retardation, low vision, leprosy cured, hearing impairment and mental illness.

Disability

Donation means money given voluntarily by one person to another without material return and consideration.

Donation

Deemed owner is the legal owner of the property. For e.g.&nbsp;1) When property is transferred to the spouse or minor child (except minor married daughter) without adequate consideration,2) Holder of property which cannot be divided,3) A member of co-operative society to whom the land or building is allotted,4) The person who has paid or agreed to pay consideration and taken possession of the property against agreement to sell or power of attorney will be the owner even if property is not registered in his name or the possession is handed over in part performance of the contract,&nbsp;5) If he has the right in property for at least 12 &nbsp;years.

Deemed owner

If you have more than one house property, you can treat only one of them as a self occupied property and others shall be treated as deemed to be let out property.

Deemed let out property

A person who is not a Resident is to be treated as Non-Resident.

Non resident

Following persons are not required to maintain the accounts compulsorily&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1)A person carrying on specified profession whose Gross Receipts in any one or more of the 3 immediately preceding years &lt; Rs.150000.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2)A person carrying Non specified Profession whose income from business is &lt; Rs. 120000 or Total turnover , Gross Receipts &lt; Rs 1000000 in all the 3 immediately preceding years.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3) A person carrying on Non Specified Profession whose income from Business &gt; Rs.120000 or Gross Receipts &gt; Rs.1000000 in any of the 3 years.

Non Maintenance of Accounts

NSC VIII issue is the scheme of Savings certificates introduced by the Central Government under the Savings Certificate Act, 1959, for subscription by general public. You can claim deduction under 80 C if you make any investment in NSC VIII issue.

NSC VIII issue

Permanent Account Number (PAN) is a unique ten- digit alphanumeric number, issued in the form of a laminated card, by the Income Tax department.

Profits in lieu of salary consists of payments other than salary and perquisites,which are related to the the relation between  the employer and employee,such as, payment at the time of termination  or voulantary seperaton.

Profits in lieu of salary

Any Amenity (benefit) granted free of cost or at concessional rate like rent free accomodation,domestic servant, Gas etc should be considered as perquisites.

Perquisites

The Financial Year in which the income is earned is known as the previous year. Any financial year begins from 1st of April and ends on subsequent 31st March.

Previous Year

Person includes an Individual, Hindu undivided family, Company ,firm, Association of persons or a Body of individuals, local authority, Every artificial juridical person.

Person

A profession is a group of people in a learned occupation, the members of which agree to follow specified rules of conduct while practicing such occupation.

Profession

Place of work is a place where you perform your duties of office or employment, or carry on your business or profession.

Place of work

Previous owner means a person who has actually paid price to acquire the asset.

Previous owner

Public provident fund is an account which can be opened with any of the authorized banks or post office for the purpose of investment or savings. It is an account in which a person can deposit any amount from Rs. 500 to a maximum of Rs.70000, during the year. This account can even be opened in the name of a minor child. An NRI can continue to operate this account if he becomes an NRI after opening the account.The limit of Rs 70000 has been raised to Rs 1 lakh from Assessment Year 2012-13.

Public provident fund (PPF)

A person who is suffering from at least 40% of any disability as certified by a medical authority is a “person with disability”.&nbsp;

Person with Disability

A person who is suffering from at least 80% or more of one or more than one disability as certified by a medical authority is a “person with severe disability”.

Person with severe disability

A political party means a party registered under Section 29A of the Representation of the People Act 1951.

Political party

Patentee is a person who is the true and the first inventor of any invention, and whose name is entered on the patent register as a patentee.&nbsp;

Patentee

When a person uses the property for his self residence for some months during the year and gives on rent for other part of the year.

Partly let and partly self occupied property

Property which is rented for some months and then vacated by the tenants or vice versa.

Partly let out and partly vacant property

Where the possession or completion of property takes place after the loan is taken, the amount of interest payable on such a loan is known as preconstruction period interest.

Preconstruction period interest

Unrealized Rent means the amount of rent which could not be realized for any property.

Unrealized Rent

where any investments has been made by assessee and the same has not been recorded in the books of account and the assessee offers no explanation about the nature and source of investments or the explanation offered by him in the opinion of the assessing officer is not satisfactory, the value of such investments may be deemed to be the income of the assessee of such financial year.

Unexplained investments

where in any financial year the assessee is found to be the owner of any money,bullion,jewellery or other valuable article and such articles are not recorded in the books of accounts, and the assessee offers no explanation about the nature and source of acquisition of such articles, or the explanation offered by him, in the opinion of the Assessing officer is not satisfactory, the money and the value of such article may be deemed to be the income of the assessee for the financial year.&nbsp;

Unexplained money

Where in any financial year an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or part thereof, or the explanation offered by him is in the opinion of the Assessing officer is not satisfactory,the amount covered by such expenditure or part thereof, may be deemed to be the income of the assessee for such financial year.

Unexplained expenditure

A person is said to be a resident if:- (I) If he stays in India in immediately preceding year for a period of at least 182 days ,Or (ii) If he stays for a period of 60 days during immediately preceding year and 365 days or more in immediately preceding 4 years.

Resident

A person who is Resident in India shall be treated as Resident and Ordinarily Resident if:-                                                                                                                                                                                                                               i) He is Resident in India in 2 out of 10 immediate preceding years

Resident and ordinarily Resident

A person who is Resident in India shall be treated as Resident and Not Ordinarily Resident if:-&nbsp

Resident and not Ordinarily Resident

Relative

If a person has received salary in advance or in arrears or any money as profits in lieu of salary, due to which his total income is assessed at a rate higher than that at which it would otherwise have been assessed, he can claim relief from income-tax. The relief is essentially a reduction in your income-tax.

Relief due to arrears

If you are a resident individual and have paid tax on any income which accrued outside India, in any country with which there is an agreement for relief of double taxation, then you are allowed a relief from tax payable in India. The amount of relief is equal to the tax calculated on such income at the India tax rates, or the applicable tax paid in the foreign country, whichever is less.

Relief due to Double Taxation Agreement

Title

Income is any money earned in cash or in kind by a person whether or not received .

Income

When a payer pays money to the assessee above certain limits then he is liable to deduct tax on such payment , then the tax so deducted is called Tax Deducted at Source (TDS) and this tax is deposited with the Government.

TDS(Tax Deducted at Source)

Self Assessment tax means any balance tax paid by the assessee on the assessed income after deducting TDS and Advance tax before filing the Return of income.

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