Financial Glossary

Income Tax Act section allowing up to ₹1.5 lakh deduction from taxable income across PPF, ELSS, EPF, NSC, life insurance, home loan principal, and more.

Extra ₹50,000 tax deduction over and above the ₹1.5L 80C cap — exclusively for voluntary NPS Tier 1 contributions in the old tax regime.

Health insurance premium deduction — ₹25K for self/spouse/kids, ₹50K if any covered is 60+, plus a separate ₹25K-50K for parents.

Income tax paid in four quarterly installments through the financial year — required if annual liability after TDS exceeds ₹10,000.

The contract fixing the terms of a future property sale — it creates no ownership interest by itself; only the registered sale deed transfers title.

Statement on the e-filing portal showing your TDS, interest, dividends, securities and property transactions, with a feedback option for errors.

Property paid for by one person but held in another's name to hide the real owner — confiscable, with up to 7 years' imprisonment under the 1988/2016 Act.

Compound Annual Growth Rate — the constant annual rate at which an investment would have grown from start value to end value.

Park unutilised capital gains in a CGAS 1988 account before the ITR due date to keep Section 54/54F exemption while you buy or build your house.

The net usable floor area of a flat as defined by RERA — the only legal basis for selling, typically 20-40% smaller than the marketed super built-up area.

Challan 280 (ITNS 280) is the challan for paying income tax online — advance tax (code 100), self-assessment (300) and regular assessment (400).

Three-digit credit score (300-900) from TransUnion CIBIL — banks use it as the first filter for loan and credit card approval. Above 750 is good.

The local authority's certificate that a building matches its sanctioned plan — the step before the Occupancy Certificate.

Interest calculated on the principal plus accumulated interest — the engine behind long-term wealth creation.

The document that transfers property ownership — every sale deed is one; Maharashtra societies can force 'deemed conveyance' from defaulting builders.

Flat 4% surcharge on income tax + any surcharge — applied across all slabs to fund health and education programmes.

Digital stamp-duty payment through SHCIL with a tamper-proof certificate — verify any e-stamp instantly by its UIN on shcilestamp.com.

Mandatory final step of ITR filing — verify within 30 days via Aadhaar OTP, EVC or ITR-V, else the return is treated as invalid.

Equated Monthly Instalment — the fixed monthly amount you pay your lender to repay a loan over its tenure.

A Sub-Registrar's record of all registered transactions on a property — the document banks demand to confirm a title is free of loans and claims.

Employees' Provident Fund — mandatory salary-linked retirement scheme with 12% employee + 12% employer contribution and current 8.25% interest.

Fixed Obligation to Income Ratio — the percentage of your net monthly income going towards all EMIs combined. Banks cap this at 40-55%.

Form 10E claims Section 89(1) tax relief on salary arrears or advance; file it online on the e-filing portal before your ITR or relief is denied.

Self-declarations to receive interest without TDS — 15G for under-60s below the exemption limit, 15H for senior citizens with nil tax.

TDS certificate employers must issue to salaried employees by 15 June, summarising salary paid and tax deducted for the financial year.

The official annual statement showing all TDS deducted on your PAN — the master record for claiming TDS credit when filing ITR.

Paying stamp duty by having an authorized bank imprint the stamp on your document with a franking machine — an alternative to stamp paper and e-stamping.

Goods and Services Tax — unified indirect tax replacing VAT, service tax, excise, etc. Five slabs: 0%, 5%, 12%, 18%, 28%.

House Rent Allowance — salary component exempt from income tax under Section 10(13A), available only in the old regime.

Adjusting the purchase cost for inflation using the Cost Inflation Index (CII) to reduce taxable capital gain — removed for new acquisitions post-July 2024.

Simplest ITR for resident individuals earning up to ₹50 lakh from salary, up to two house properties, other sources and small LTCG u/s 112A.

ITR form for individuals and HUFs without business income who have capital gains, multiple properties, foreign assets or income above ₹50 lakh.

Updated return u/s 139(8A) letting you fix or file missed returns up to 48 months after the assessment year, with 25–70% additional tax.

The municipal property-tax account (famous in Bengaluru: A-khata vs B-khata, now e-khata) — needed for tax, loans and approvals, but not proof of ownership.

Long-Term Capital Gains on listed equity / equity mutual funds — taxed at 12.5% above ₹1.25 lakh annual exemption per FY.

Long-Term Capital Gains on real estate held over 24 months — taxed at 12.5% without indexation (post-July 2024).

Loan-to-Value ratio — the percentage of property value a bank will fund. Capped at 75-80% for home loans, 60-70% for LAP.

Updating municipal or land-revenue records (dakhil kharij) to the new owner's name after a sale, gift or inheritance — vital, but not proof of title.

India's default income tax regime since FY 2023-24 — lower slabs (5%/10%/15%/20%/30%) but no 80C, 80D, HRA, or home loan deductions.

National Pension System — a market-linked retirement scheme with equity exposure up to 75% and an extra ₹50K tax deduction.

The municipal certificate declaring a completed building safe and legal to occupy — never take possession of a new flat without it.

Original income tax regime with higher slab rates (5%/20%/30%) but full access to 80C, 80D, HRA, and home loan interest deductions.

Tamil Nadu's land-revenue record naming the holder of a land parcel, merged with Chitta since 2015 — viewable free on eservices.tn.gov.in.

A document authorizing someone to act for you in property matters — but per the Supreme Court's Suraj Lamp ruling, a GPA can never transfer ownership.

Public Provident Fund — a 15-year government-backed savings scheme with tax-free interest and EEE tax treatment.

Presumptive taxation lets small businesses (44AD) and professionals (44ADA) declare fixed profit rates — no books of account or tax audit needed.

The 2016 law that regulates builders: mandatory project registration, carpet-area-based selling, and a 70% escrow rule enforced by state authorities.

Mental shortcut for compound growth — divide 72 by your annual return rate to estimate years to double your money. Most accurate for rates from 6% to 10%.

The registered document that actually transfers property ownership from seller to buyer — compulsory registration after paying stamp duty.

Section 80G gives 50% or 100% deduction for donations to approved funds under the old regime; cash capped at ₹2,000 and Form 10BE is mandatory.

Tax rebate that makes total income tax zero for taxable income up to ₹12 lakh in the new regime or ₹5 lakh in the old regime, for resident individuals.

Self-assessment tax is the balance income tax you pay via e-Pay Tax before filing your ITR, after adjusting TDS and advance tax already paid.

Systematic Investment Plan — fixed monthly investments into a mutual fund that build wealth via rupee-cost averaging and compounding.

State-level tax on property registration, typically 5-8% of property value (Tamil Nadu highest at 11%). Paid in cash; not financed by the home loan.

Short-Term Capital Gains on equity sold within 12 months of purchase — taxed at flat 20% (post-July 2024).

Additional tax on tax for high-income earners — 10% above ₹50L, 15% above ₹1cr, 25% above ₹2cr, 37% above ₹5cr (old regime only).

TAN is the 10-character Tax Deduction Account Number every TDS/TCS deductor must quote; apply via Form 49B; ₹10,000 penalty for non-compliance.

Tax Deducted at Source — income tax that the payer deducts from your payment and remits to the government on your behalf.

The full chain of registered documents — from the mother deed to the current sale deed — that together prove ownership of a property.

Extended Internal Rate of Return — the annualised return on a series of investments and withdrawals made on different dates. The honest metric for SIP returns.