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Tax glossary

Plain-English meanings for the terms you'll see while filing.

Form 16

The certificate your employer gives you each year showing salary paid and tax deducted (TDS) on it.

AIS

Annual Information Statement — a government summary of your reported income: salary, interest, dividends, tax paid, and more. Used to pre-fill your return.

TDS

Tax Deducted at Source — tax your employer, bank, or others withhold and pay to the government on your behalf. It counts toward your final tax.

Assessment Year (AY)

The year in which you file for income earned in the previous financial year. Income earned in FY 2025-26 is filed in AY 2026-27.

Tax regime

The set of rates and rules you file under. The old regime allows more deductions; the new regime has lower rates but fewer deductions.

Deductions (Chapter VI-A)

Amounts you can subtract from income before tax — like 80C investments or health-insurance premiums — available mainly under the old regime.

Capital gains

Profit from selling assets like shares, mutual funds, or property. Taxed under its own rules depending on how long you held the asset.