Compliance, in plain English.

51 terms

Advance TaxIncome Tax

Tax paid in instalments during the year rather than at the end, once liability crosses the prescribed threshold. Shortfalls attract interest under separate sections for deferment and for non-payment.

Aggregate TurnoverGST

The figure that decides whether GST registration is compulsory. It is computed PAN-wide across all your GSTINs in India and includes exempt supplies, exports and inter-state supplies — not only the taxable sales you invoice.

AISAnnual Information StatementIncome Tax

A wider statement than Form 26AS, listing interest, dividends, securities transactions, foreign remittances and more, as reported by third parties. Differences between AIS and your return draw queries.

AOAArticles of AssociationCompany Law

The internal rulebook: how the company is governed, how shares move, how directors are appointed and how meetings run. Investor rights only bind properly when they are written in here.

AOC-4Company Law

The form through which a company files its financial statements with the Registrar each year, within 30 days of the AGM.

Annual Filing of Companies →

Authorised CapitalCompany Law

The ceiling on shares a company may issue, set in the MOA. Shares cannot be allotted beyond it, which is why an investment often requires it to be increased first.

Authorised Capital →

CINCorporate Identity NumberCompany Law

The 21-character number assigned to a company on incorporation. It encodes the listing status, industry code, state, year and registration number.

CMA DataCredit Monitoring ArrangementBusiness & Finance

Financial statements in the format banks assess working capital on — Forms I to VI, ending in the computation of maximum permissible bank finance.

CMA Data Preparation →

Composition SchemeGST

A simplified route for small taxpayers: a low flat rate on turnover and a quarterly statement instead of monthly returns. The trade-off is no input tax credit, no GST collected from customers, and no inter-state outward supply.

GST CMP-08 Composition →

DINDirector Identification NumberCompany Law

A unique number every director must hold. It stays with the individual across companies and has to be kept active by filing DIR-3 KYC each year.

DIR-3 KYC →

DPIIT RecognitionBusiness & Finance

Recognition under the Startup India programme, unlocking tax holidays, self-certification under labour laws, tender relaxations and access to the Fund of Funds.

Startup India / DPIIT →

DPT-3Company Law

The annual return of deposits, which also reports money that is not treated as a deposit — director loans, customer advances, inter-corporate loans. Almost every company has something to report.

DPT-3 Filing →

DSCDigital Signature CertificateCompany Law

The signing credential required for MCA, income tax, GST and e-tender filings. A Class 3 individual certificate is the usual requirement, valid for two years.

Digital Signature (DSC) →

DSCRDebt Service Coverage RatioBusiness & Finance

Cash available to service debt, divided by the debt service due. The first number a credit officer looks for, and the one that decides whether a proposal is viable.

Project Report →

DTAADouble Taxation Avoidance AgreementInternational

A treaty between two countries deciding which of them may tax a given income and at what rate, and giving credit for tax paid in the other.

DTAA & Tax Credit →

E-Way BillGST

An electronic document required for moving goods above a prescribed value. It carries a validity period tied to distance, and goods in transit without a valid one can be detained.

Examination ReportTrademark & IP

The Registrar's objections to a trademark application, usually on similarity to an existing mark or lack of distinctiveness. It is not a refusal, and it must be replied to within 30 days.

Objection Reply →

FC-GPRInternational

The RBI filing due within 30 days of allotting shares to a non-resident. Missing it is one of the most common findings in a funding diligence.

FEMA & FDI →

Form 15CA / 15CBInternational

The declaration and the Chartered Accountant's certificate a bank needs before remitting money out of India above the prescribed threshold.

15CA / 15CB →

Form 16Income Tax

The certificate an employer issues showing salary paid and tax deducted for the year. Part A comes from TRACES; Part B carries the detailed salary breakup.

ITR for Salaried →

Form 26ASIncome Tax

Your consolidated tax statement — TDS credited against your PAN, advance tax paid, refunds issued and high-value transactions reported. Your return should reconcile to it.

GSTINGoods and Services Tax Identification NumberGST

The 15-digit number issued on GST registration. The first two digits are the state code and the next ten are the PAN of the entity, which is why a business needs a separate GSTIN in every state it operates from.

GST Registration →

GSTR-1GST

The return reporting your outward supplies — every sale, credit note and debit note for the period. What you report here is what flows into your customers' GSTR-2B.

GSTR-2BGST

A static statement generated each month listing the input tax credit available to you, based on what your suppliers have filed. Your claim has to reconcile to it.

GSTR-3BGST

The summary return in which you declare your liability, claim input tax credit and actually pay the tax for the period.

GSTR-9GST

The annual return consolidating a full financial year of GST. Really a reconciliation exercise: outward supplies, credit and tax paid all have to tie back to your books.

GST Annual Return →

Gumasta LicenceBusiness & Finance

The Madhya Pradesh name for Shop and Establishment registration, required for commercial premises and frequently demanded by banks opening a current account.

Gumasta Licence →

HSN / SACGST

Classification codes for goods (HSN) and services (SAC). They determine the rate and have to be shown on invoices above prescribed turnover thresholds.

IECImport Export CodeBusiness & Finance

The ten-digit code issued by DGFT that any importer or exporter of goods and services needs.

Import Export Code (IEC) →

Input Tax CreditITCGST

Credit for the GST you paid on business purchases, set off against the GST you collect on sales. It is available only once the supply appears in your GSTR-2B, which depends on your supplier having filed their own return.

GST Returns — 12 Months →

LUTLetter of UndertakingGST

An annual undertaking that lets an exporter ship goods or services without paying IGST upfront, so working capital is not blocked waiting for a refund.

LUT Registration →

MGT-7Company Law

The annual return of a company — shareholding, directors, meetings and changes during the year. Due within 60 days of the AGM. Small companies and OPCs file MGT-7A.

MOAMemorandum of AssociationCompany Law

The charter document setting out what the company is permitted to do — its name, registered office state, objects, liability and capital.

MOA / AOA Change →

MSME-1Company Law

A half-yearly return reporting payments to micro and small suppliers outstanding beyond 45 days.

MSME-1 Filing →

New Tax RegimeIncome Tax

The default regime: wider slabs and lower rates, in exchange for giving up most deductions and exemptions. Whether it beats the old regime depends on how much you can genuinely claim.

PANPermanent Account NumberIncome Tax

The ten-character identifier issued by the income tax department. It is the spine of the tax system — quoted on returns, bank accounts, high-value transactions and every other registration.

PAN Card Application →

Passing OffTrademark & IP

The common-law remedy protecting an unregistered mark that has acquired reputation. It works, but proving prior use and goodwill is expensive compared with holding a registration.

Presumptive TaxationIncome Tax

A simplified scheme where income is presumed at a prescribed percentage of turnover, removing the need to maintain detailed books. Available to eligible small businesses and professionals.

Prior ArtTrademark & IP

Everything already publicly known before a patent application's priority date. If the invention is found in prior art, it is not novel and cannot be patented.

Patent Filing →

Reverse ChargeRCMGST

Where the recipient pays the GST instead of the supplier. It applies to specified supplies and to some purchases from unregistered persons, and it makes registration compulsory regardless of turnover.

RNORResident but Not Ordinarily ResidentInternational

A transitional residential status, often available for a period after returning to India, under which most foreign income stays outside the Indian tax net. Commonly missed.

NRI Tax Return →

Section 80CIncome Tax

The deduction most people know — life insurance premium, PPF, ELSS, principal on a home loan, tuition fees and more, up to a ceiling. Available under the old regime only.

Tax Planning →

Strike OffCompany Law

The process of removing a dormant company or LLP from the register, ending the recurring compliance obligation. Pending filings have to be closed before applying.

Strike Off →

TANTax Deduction and Collection Account NumberIncome Tax

A separate number required by anyone who deducts tax at source. It is quoted on TDS returns and challans, and is distinct from PAN.

TDSTax Deducted at SourceIncome Tax

Tax withheld by the payer at the time of payment and deposited on the recipient's behalf. Failing to deduct can lead to the expense being disallowed; deducting and depositing late attracts interest.

TDS Returns →

Trademark ClassTrademark & IP

Goods and services are grouped into classes under the Nice classification. A registration protects the mark only for the classes applied for, which is why class selection matters more than the fee saved.

Trademark Registration →

Transfer PricingInternational

The rule that transactions with an associated enterprise abroad must be priced at arm's length, with documentation and a Form 3CEB certificate — regardless of the transaction's value.

Transfer Pricing →

TRCTax Residency CertificateInternational

A certificate from your country of residence, required before treaty benefits can be claimed in India. Without it, and Form 10F, tax is withheld at the higher domestic rate.

Udyam RegistrationBusiness & Finance

The government's record of a business as a micro, small or medium enterprise. Free to obtain and the gateway to priority lending, collateral-free schemes, tender preference and protection on delayed payments.

Udyam / MSME Registration →

VDAVirtual Digital AssetIncome Tax

Crypto and similar assets. Taxed under a regime of their own — a flat rate, only cost of acquisition deductible, and losses that cannot be set off against anything.

ITR with Crypto Income →

Working CapitalBusiness & Finance

The money tied up in running the business day to day — stock and receivables less payables. Undercooking it is the most common reason a funded project runs into trouble.