Understand Indian business and compliance terms with simple, jargon-free definitions. From A (AGM) to X (XBRL) - everything you need to know.
ATerms starting with A
AGM
Annual General Meeting - a mandatory yearly meeting of a company's shareholders where financial results are presented and key decisions are voted on.
AOA
Articles of Association - a legal document that outlines the rules and regulations for the internal management of a company. Filed with the MCA during incorporation.
BTerms starting with B
Balance Sheet
A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific point in time. Required for annual ROC filings.
Board Resolution
A formal decision made by the board of directors of a company, documented in writing and signed by directors. Required for major corporate actions like loans, appointments, and mergers.
CTerms starting with C
CIN
Corporate Identification Number - a 21-digit alphanumeric unique identification number assigned to every registered company by the Registrar of Companies (ROC).
Company
A legal entity formed by a group of individuals to carry on a business. Registered under the Companies Act, 2013, with limited liability for its shareholders.
Compliance
The act of adhering to laws, regulations, guidelines, and specifications relevant to business operations. In India, includes GST, ROC, TDS, and labour law compliances.
DTerms starting with D
DSC
Digital Signature Certificate - a secure digital key issued by certifying authorities that authenticates the identity of the holder for electronic filing of forms with the MCA, GST, and Income Tax portals.
DIN
Director Identification Number - a unique identification number assigned by the Central Government to any person intending to become a director of a company. Mandatory for all directors.
ETerms starting with E
E-commerce
Electronic commerce - buying and selling of goods or services over the internet. E-commerce businesses require specific GST registration, FSSAI licenses, and other compliances.
EPF
Employees Provident Fund - a mandatory retirement savings scheme where both employer and employee contribute 12% of basic wages monthly. Managed by the Employees Provident Fund Organisation (EPFO).
ESIC
Employees State Insurance Corporation - a social security scheme providing medical and cash benefits to employees earning up to Rs. 21,000/month. Both employer and employee contribute.
FTerms starting with F
Form 16
A certificate issued by an employer to an employee detailing tax deducted at source (TDS) on salary income for the financial year. Used while filing Income Tax Returns.
Form 24Q
A quarterly TDS return form filed by employers for tax deducted at source on salary payments. Due by the 31st of the month following each quarter.
Form 26AS
An annual tax statement showing all taxes deducted at source (TDS/TCS) and taxes paid by the taxpayer, viewable on the Income Tax Department's website.
Form 26QB
A TDS return form for deduction of tax on the sale of immovable property (land, building) exceeding Rs. 50 lakh, filed by the buyer.
GTerms starting with G
GST
Goods and Services Tax - a comprehensive indirect tax levied on the supply of goods and services, replacing multiple cascading taxes. Applicable to most businesses in India with turnover above the threshold limit.
GSTIN
Goods and Services Tax Identification Number - a unique 15-digit alphanumeric PAN-based identification number assigned to every GST-registered taxpayer.
GSTR-1
A monthly or quarterly return form containing details of all outward supplies (sales) made by a GST-registered taxpayer. Due by the 10th of the following month.
GSTR-3B
A monthly self-declaration return form that provides a summary of outward supplies, input tax credit (ITC) claimed, and tax liability. Due by the 20th of the following month.
GSTR-9
An annual GST return form providing a comprehensive summary of all outward supplies, input tax credit, and tax paid during the financial year. Due by December 31st.
GSTR-9C
An annual GST reconciliation statement filed alongside GSTR-9, certified by a Chartered Accountant or Cost Accountant for taxpayers with turnover above Rs. 2 crore.
ITerms starting with I
Incorporation
The legal process of registering a new company or LLP under the Companies Act, 2013 or LLP Act, 2008. Results in the creation of a separate legal entity.
ITC
Input Tax Credit - a mechanism under GST that allows businesses to claim credit for the tax paid on inputs (purchases) against the tax payable on outputs (sales), eliminating cascading tax.
ITR
Income Tax Return - a form filed annually with the Income Tax Department to report income, deductions, exemptions, and tax liability. Different forms (ITR-1 to ITR-7) apply based on income source and type of taxpayer.
KTerms starting with K
KYC
Know Your Customer - a mandatory process for verifying the identity and address of customers. Required for opening bank accounts, obtaining DIN, GST registration, and many other business services.
LTerms starting with L
LLP
Limited Liability Partnership - a hybrid business structure combining the benefits of a partnership firm (flexibility) with a company (limited liability for partners). Registered under the LLP Act, 2008.
MTerms starting with M
MCA
Ministry of Corporate Affairs - the Indian government ministry responsible for regulating Indian enterprises and the corporate sector through the Companies Act, 2013.
MOA
Memorandum of Association - the foundational charter of a company that defines its relationship with the outside world, including the company's name, registered office, objects, and liability of members. Filed during incorporation.
PTerms starting with P
PAN
Permanent Account Number - a 10-character alphanumeric unique identifier issued by the Income Tax Department. Mandatory for filing ITR, opening bank accounts, and all high-value financial transactions.
RTerms starting with R
ROC
Registrar of Companies - an office under the MCA responsible for company registration, administration of registered companies, and ensuring statutory compliance with the Companies Act.
STerms starting with S
SARFAESI
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act - a law allowing banks and financial institutions to recover NPAs by seizing and auctioning secured assets without court intervention.
Section 8
A company registered under Section 8 of the Companies Act, 2013 for promoting commerce, art, science, religion, charity, or other socially beneficial objectives. Profits cannot be distributed to members.
TTerms starting with T
TAN
Tax Deduction and Collection Account Number - a 10-digit alphanumeric number required for any person or entity responsible for deducting or collecting tax at source (TDS/TCS).
TDS
Tax Deducted at Source - a mechanism where tax is deducted at the time of making payments (salary, rent, commission, etc.) by the payer and deposited with the government. The recipient receives credit for the TDS deducted.
Trademark
A recognizable sign, design, word, or expression that identifies and distinguishes products or services of one business from others. Registered with the Controller General of Patents, Designs, and Trade Marks (CGPDTM).
UTerms starting with U
Udyam
Udyam Registration - the government's simplified online registration process for MSMEs, replacing the previous UAM system. Provides access to government schemes, subsidies, and priority sector lending.
XTerms starting with X
XBRL
eXtensible Business Reporting Language - a language for the electronic communication of business and financial data. Used by Indian companies for filing financial statements with the MCA in the required format.
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