Tax Terms You Must Know Before Filing ITR

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16 Jan 2025


Assessment year (AY): The year income from the previous financial year is assessed and taxed


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Financial year (FY): The period during which income is earned, spanning April 1 to March 31


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Permanent account number (PAN): A unique identifier mandatory for taxpayers when filing income tax returns


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Form 16: A certificate issued by employers detailing salary paid and tax deducted during the year


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Form 26AS: A consolidated tax statement showing TDS, TCS, and advance tax details for cross-verification


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Tax deducted at source (TDS): Tax deducted directly by payers and deposited with the government on your behalf


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Gross total income: The sum of all income before applying any allowable deductions or exemptions


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Deductions: Specific amounts under sections like 80C, 80D, reducing taxable income significantly


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Taxable income: Income subject to tax after subtracting all eligible deductions and exempt incomes


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Verification: Authenticating your ITR using Aadhaar OTP, net banking, or submitting a signed form to CPC


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