The words nobody explains
70 terms Indian finance uses as if everyone already knows them. Each one in plain language, with a worked example and the Devanagari form.
A
Advance tax
अग्रिम करTax paid during the year in instalments rather than at the end, if your total liability crosses ₹10,000.
Meera freelances. Because no employer deducts TDS for her, she pays advance tax in four instalments.
Central Board of Direct Taxes
AIS
ए॰आई॰एस॰(transliterated)Annual Information Statement
A yearly statement from the Income Tax Department showing everything reported against your PAN — interest, dividends, share sales, big transactions.
Ravi forgot ₹8,000 of savings interest. It was already in his AIS, so the mismatch showed up the moment he filed.
Central Board of Direct Taxes
AMFI
ए॰एम॰एफ॰आई॰(transliterated)Association of Mutual Funds in India
The industry body for Indian mutual funds. It publishes daily NAVs and registers distributors, but it is not a regulator.
Anyone selling you a mutual fund for commission needs an AMFI registration number, an ARN.
Securities and Exchange Board of India
Annuity
वार्षिकीA product bought with a lump sum that pays you a fixed income for life. At least 40% of an NPS corpus must buy one.
At 60, Suresh used ₹40 lakh of his corpus to buy an annuity paying about ₹20,000 a month.
Pension Fund Regulatory and Development Authority
Assessment Year
निर्धारण वर्षAY · Tax year
The old label for the year in which the previous year's income was taxed. The Income-tax Act 2025 scrapped it: from 1 April 2026 there is just one "tax year" — the financial year itself. Older forms and portals still say AY.
Income earned in FY 2026-27 belongs to tax year 2026-27. On an older form the same filing would be labelled AY 2027-28.
Central Board of Direct Taxes
B
BSBDA
बी॰एस॰बी॰डी॰ए॰(transliterated)Basic Savings Bank Deposit Account
A zero-balance account every bank must offer, with no minimum balance penalty.
After being charged ₹600 for a low balance, Priya switched to a BSBDA.
Reserve Bank of India
C
Capital gain
पूंजीगत लाभThe profit when you sell an asset for more than you paid. Taxed differently depending on the asset and how long you held it.
Selling shares held 18 months for ₹2 lakh more than you paid is a long-term capital gain.
Central Board of Direct Taxes
Carpet area
कार्पेट एरिया(transliterated)The actual usable floor area inside the walls of a flat. RERA requires builders to quote it.
The brochure said 1,200 sq ft super built-up. The carpet area was 780.
Personal and succession law
CIBIL
सिबिल(transliterated)One of four credit bureaus in India. Its score, from 300 to 900, is what most lenders check first.
Arjun had never taken a loan, so he had no CIBIL score at all — which is different from a bad one.
Reserve Bank of India
Clubbing of income
आय का क्लबिंग(transliterated)Rules that add someone else’s income to yours for tax, to stop income being moved to a lower-taxed relative.
Money gifted to a spouse and invested still has its income taxed in the giver’s hands.
Central Board of Direct Taxes
Coparcener
सहदायिकA member of a Hindu Undivided Family with a birthright in its property. Daughters have been coparceners since the 2005 amendment.
As a coparcener, Kavita could demand partition of the family property.
Personal and succession law
Corpus
कोषThe total pot of money accumulated in an investment or pension account.
After twenty years, her retirement corpus stood at about ₹38 lakh.
CTC
सी॰टी॰सी॰(transliterated)Cost to Company
What an employee costs their employer in a year, including money that never reaches the employee.
His ₹12 lakh CTC paid about ₹88,000 a month into his account — the rest was PF, gratuity provision and deductions.
Central Board of Direct Taxes
D
DEAF
डी॰ई॰ए॰एफ॰(transliterated)Depositor Education and Awareness Fund
Where money in bank accounts untouched for ten years is transferred. You can still claim it.
Her grandfather’s forgotten account had moved to DEAF, and the bank helped her claim it back.
Reserve Bank of India
Demat
डीमैट(transliterated)Dematerialised account
An account that holds shares and bonds electronically instead of as paper certificates.
You need a demat account to hold shares, and a trading account to buy them.
Securities and Exchange Board of India
DICGC
डी॰आई॰सी॰जी॰सी॰(transliterated)The body that insures bank deposits up to ₹5 lakh per depositor per bank.
Spreading ₹15 lakh across three banks keeps all of it within DICGC cover.
Reserve Bank of India
Direct plan
डायरेक्ट प्लान(transliterated)A version of a mutual fund bought without a distributor, so no commission is deducted. Its expense ratio is lower.
Over twenty years, the gap between a direct and a regular plan can run into lakhs.
Securities and Exchange Board of India
E
EEE
ई॰ई॰ई॰(transliterated)Exempt-Exempt-Exempt
An instrument where the deposit, the growth and the maturity amount are all tax free. PPF is the classic example.
PPF is EEE, so a 7.1% return there is not comparable to a 7.1% fixed deposit — the FD's interest is taxed every year.
Central Board of Direct Taxes
ELSS
ई॰एल॰एस॰एस॰(transliterated)Equity Linked Savings Scheme
An equity mutual fund with a three-year lock-in that qualifies for the old-regime 80C deduction.
ELSS has the shortest lock-in of any 80C option — and the most price risk.
Securities and Exchange Board of India
Encumbrance certificate
भार प्रमाणपत्रA document showing whether a property has any loan or legal claim registered against it.
The encumbrance certificate showed a mortgage the seller had not mentioned.
Personal and succession law
EPF
ई॰पी॰एफ॰(transliterated)Employees’ Provident Fund
A retirement fund where you and your employer each contribute 12% of your basic pay.
His EPF passbook showed less than he expected, because part of the employer share goes to EPS.
Employees' Provident Fund Organisation
EPS
ई॰पी॰एस॰(transliterated)Employees’ Pension Scheme
The pension part of your PF. 8.33% of capped wages goes here and pays a monthly pension later.
EPS is why the employer’s 12% does not all appear in your EPF balance.
Employees' Provident Fund Organisation
Expense ratio
व्यय अनुपातThe annual fee a mutual fund charges, as a percentage of your investment. Deducted daily from the NAV.
A 1% difference in expense ratio compounds into a large gap over twenty years.
Securities and Exchange Board of India
F
Financial Year
वित्तीय वर्षThe year money is earned and taxed in, running 1 April to 31 March. Since the Income-tax Act 2025 this is also the statutory "tax year".
FY 2026-27 means 1 April 2026 to 31 March 2027.
Central Board of Direct Taxes
Form 15G/15H
फॉर्म 15जी/15एच(transliterated)A declaration that your income is below the taxable limit, so the bank should not deduct TDS. 15H is for senior citizens.
Her only income was ₹2 lakh of interest, so she filed Form 15G and avoided TDS.
Central Board of Direct Taxes
Form 16
फॉर्म 16(transliterated)The certificate your employer gives you showing salary paid and tax deducted.
Form 16 is the starting point for filing, but it does not include your other income.
Central Board of Direct Taxes
Form 26AS
फॉर्म 26एएस(transliterated)A statement of all tax credited against your PAN — TDS, TCS and advance tax.
His client had deducted TDS but never deposited it, so it never appeared in his 26AS.
Central Board of Direct Taxes
G
Grandfathering
ग्रैंडफादरिंग(transliterated)Letting an older rule continue to apply to something acquired before a change.
Property bought before 23 July 2024 keeps the option of 20% with indexation.
Central Board of Direct Taxes
Gratuity
उपदानA lump sum an employer pays after five years of service, calculated as 15 days’ wages per year.
At four years and seven months she had not completed five years, so no gratuity was due — the six-month rounding only applies after you qualify.
Employees' Provident Fund Organisation
H
HRA
मकान किराया भत्ताHouse Rent Allowance
A salary component that is partly exempt from tax if you actually pay rent. Old regime only.
His HRA exemption was nil, because his rent was below 10% of his basic.
Central Board of Direct Taxes
HUF
हिंदू अविभाजित परिवारHindu Undivided Family
A separate taxable entity under Hindu law, with its own PAN and its own basic exemption.
An HUF is a long-term commitment, not a tax trick — partition is irreversible.
Personal and succession law
I
IDV
आई॰डी॰वी॰(transliterated)Insured Declared Value
The maximum a motor insurer will pay if your vehicle is stolen or written off.
He lowered his IDV to cut the premium, then got much less when the bike was stolen.
Insurance Regulatory and Development Authority of India
IEPF
आई॰ई॰पी॰एफ॰(transliterated)Investor Education and Protection Fund
Where unclaimed dividends and shares are transferred after seven years. Claimable.
Shares her father bought in the 1990s had moved to the IEPF and were recoverable.
Securities and Exchange Board of India
Indexation
सूचकांकनAdjusting a purchase price for inflation before computing capital gains. Withdrawn for most assets in July 2024.
Indexation survives only for land and buildings bought before 23 July 2024.
Central Board of Direct Taxes
Intestate
निर्वसीयतDying without a valid will. Succession law then decides who inherits.
He died intestate, so the Hindu Succession Act decided the shares, not his wishes.
Personal and succession law
K
Karta
कर्ताThe manager of a Hindu Undivided Family, who acts on its behalf.
As Karta, he could operate the HUF’s bank account and file its return.
Personal and succession law
KYC
के॰वाई॰सी॰(transliterated)Know Your Customer
The identity verification a financial institution must do before opening an account.
KYC exists to stop anonymous accounts — which is also why nobody legitimate asks for your OTP.
Reserve Bank of India
L
LTCG
दीर्घकालिक पूंजीगत लाभLong Term Capital Gains
Gains on an asset held beyond a threshold — 12 months for listed equity, 24 months for most other assets.
LTCG on listed equity is taxed at 12.5% above ₹1.25 lakh a year.
Central Board of Direct Taxes
M
Marginal relief
सीमांत राहतA rule that caps tax where income barely crosses a threshold, so you are never worse off for earning slightly more.
At ₹12,10,000, marginal relief limits the tax to ₹10,000 instead of ₹61,500.
Central Board of Direct Taxes
MWP Act
एम॰डब्ल्यू॰पी॰ अधिनियम(transliterated)Married Women’s Property Act
A law under which a life policy can be placed in trust for a spouse and children, beyond the reach of creditors.
A policy under the MWP Act cannot be attached for the policyholder’s business debts.
Insurance Regulatory and Development Authority of India
N
Nominee
नामितीThe person a bank or fund pays after your death. A receiver, not necessarily the owner.
Naming his brother as nominee did not make his brother the heir.
Personal and succession law
NPS
एन॰पी॰एस॰(transliterated)National Pension System
A retirement scheme with a lock-in until 60, after which at least 40% must buy an annuity.
NPS gives an extra ₹50,000 deduction under 80CCD(1B), old regime only.
Pension Fund Regulatory and Development Authority
NSC
एन॰एस॰सी॰(transliterated)National Savings Certificate
A five-year post office savings certificate that qualifies for the 80C deduction.
NSC interest is reinvested, and each year’s reinvestment also counts toward 80C.
Central Board of Direct Taxes
O
Occupancy certificate
अधिभोग प्रमाणपत्रThe municipal certificate confirming a building is fit to live in. Without it, occupation is technically unlawful.
The flat was ready but had no occupancy certificate, so the bank delayed disbursal.
Personal and succession law
Ombudsman
लोकपालA free dispute-resolution official for banking, insurance and other sectors, used after the company has failed to resolve a complaint.
After 30 days with no reply, she took the claim to the Insurance Ombudsman.
Reserve Bank of India
P
PAN
पैन(transliterated)Permanent Account Number
A ten-character identifier issued by the Income Tax Department, required for most financial transactions.
His TDS never showed in 26AS, because the client had recorded the wrong PAN.
Central Board of Direct Taxes
Partition
विभाजनSplitting a Hindu Undivided Family’s property among its coparceners. Once done, it cannot be undone.
After partition, the HUF ceased to exist and could no longer file a return.
Personal and succession law
PPF
पी॰पी॰एफ॰(transliterated)Public Provident Fund
A 15-year government savings scheme with tax-free interest and maturity.
PPF is EEE, and its rate is reset every quarter rather than fixed for the term.
Central Board of Direct Taxes
Presumptive taxation
अनुमानित कराधानDeclaring a fixed percentage of turnover as profit instead of maintaining books.
Under 44ADA she declared 50% of receipts as profit and skipped the bookkeeping.
Central Board of Direct Taxes
Probate
प्रोबेट(transliterated)A court’s confirmation that a will is valid, needed in some states and for some assets.
The bank asked for probate before releasing the deposit.
Personal and succession law
R
Rebate 87A
धारा 87ए छूटA rebate that reduces tax to nil below a threshold — up to ₹60,000 of tax on ₹12 lakh of taxable income under the new regime. It applies to slab-rate income only, not to capital gains taxed at special rates.
Because of section 87A, a ₹12.75 lakh salary can pay no tax at all.
Central Board of Direct Taxes
Regular plan
रेगुलर प्लान(transliterated)A mutual fund bought through a distributor, with commission built into a higher expense ratio.
He had been in a regular plan for eight years without knowing a direct one existed.
Securities and Exchange Board of India
REIT
आर॰ई॰आई॰टी॰(transliterated)Real Estate Investment Trust
A listed vehicle that owns income-producing property and distributes most of its income.
A REIT gives property exposure without buying a flat.
Securities and Exchange Board of India
RERA
रेरा(transliterated)Real Estate (Regulation and Development) Act
The law requiring builders to register projects, quote carpet area and hold buyer money in escrow.
Buyers commonly look up a project's RERA registration on the state RERA portal before booking.
Personal and succession law
Riskometer
रिस्कोमीटर(transliterated)A mandatory dial on every mutual fund showing its risk level, from low to very high.
The riskometer said very high, which the brochure’s photography did not.
Securities and Exchange Board of India
S
SCORES
स्कोर्स(transliterated)SEBI’s online complaint portal for anything in the securities market.
After his broker ignored two emails, he filed on SCORES.
Securities and Exchange Board of India
SIP
एस॰आई॰पी॰(transliterated)Systematic Investment Plan
Investing a fixed amount at fixed intervals. A method, not a product, and not a guarantee.
Her SIP kept buying through the fall, which is the point of the method.
Securities and Exchange Board of India
STCG
अल्पकालिक पूंजीगत लाभShort Term Capital Gains
Gains on an asset sold before it reaches the long-term holding threshold. On listed equity this is taxed at 20%.
Selling shares after 11 months made it short-term, and cost him more tax.
Central Board of Direct Taxes
STT
एस॰टी॰टी॰(transliterated)Securities Transaction Tax
A small tax charged on every trade in listed securities.
STT is not deductible against your capital gain.
Central Board of Direct Taxes
Sub-limit
उप-सीमाA cap inside an insurance policy on a specific expense, regardless of your total cover.
A sub-limit on cataract surgery meant her ₹5 lakh policy paid only ₹40,000.
Insurance Regulatory and Development Authority of India
Super top-up
सुपर टॉप-अप(transliterated)A health policy that pays once your total yearly claims cross a threshold, not each claim.
A ₹20 lakh super top-up above a ₹5 lakh base is priced far below what ₹25 lakh of base cover costs.
Insurance Regulatory and Development Authority of India
Surrender value
समर्पण मूल्यWhat you get if you exit a life insurance policy early. Usually much less than you paid in.
Three years in, his endowment policy’s surrender value was under half the premiums paid.
Insurance Regulatory and Development Authority of India
T
TDS
स्रोत पर कर कटौतीTax Deducted at Source
Tax withheld by the payer before paying you. An advance, not the final bill.
The bank deducted 10% TDS, but his slab rate was 30%, so he owed more on filing.
Central Board of Direct Taxes
U
UAN
यू॰ए॰एन॰(transliterated)Universal Account Number
A permanent number linking all your EPF accounts across employers.
Activating his UAN let him transfer his PF instead of withdrawing it.
Employees' Provident Fund Organisation
UDGAM
उद्गम(transliterated)An RBI portal for finding unclaimed deposits across banks.
She searched UDGAM and found an account her mother had forgotten.
Reserve Bank of India
ULIP
यूलिप(transliterated)Unit Linked Insurance Plan
A product mixing insurance and investment. Frequently mis-sold to first-time earners.
His ULIP’s first-year charges meant very little was actually invested.
Insurance Regulatory and Development Authority of India
V
VDA
वी॰डी॰ए॰(transliterated)Virtual Digital Asset
The tax term for crypto and NFTs. Taxed at a flat 30% with no loss set-off.
A gain on one coin and an equal loss on another still leaves VDA tax to pay.
Central Board of Direct Taxes
W
Waiting period
प्रतीक्षा अवधिThe time after buying a health policy before a condition is covered.
Her pre-existing condition had a three-year waiting period she had not read about.
Insurance Regulatory and Development Authority of India
Will
वसीयतA written statement of who should get your assets after your death, signed and witnessed by two people.
A one-page will, properly witnessed, would have avoided four years of dispute.
Personal and succession law
Why some terms are shown transliterated
A lot of Indian financial vocabulary has no clean Hindi equivalent — nobody says anything other than “CIBIL” or “demat”. Inventing a translation would be worse than useless, because it would leave a learner unable to recognise the word when a bank actually uses it. So where there is a genuine term we use it, and where there is not we show the English word in Devanagari and say so.
Missing a word? Tell us and we will add it.