Tax Glossary

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Tax Glossary

Some of the terminology of taxation can be difficult to understand. the purpose of this glossary is to understand this terminology to those whose do not work with tax issues every day.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

ACQUISITION - Purchase of controlling interest in a firm, generally through tender offer for the target shares.

ALLOWANCE - Deduction or exemptions generally made in computing income taxes, inheritance and gift taxes and some forms of sales taxes.

ASSESSMENT - Act of computing the tax due

ADVANCE TAX - Advance tax means income tax should be paid in advance instead of lump sum payment at year end. It is also known as pay as you earn tax. The amount of advance tax payable should be calculated by deducting TDS from tax due on the income.

ASSETS - Any capital expenditure made to acquire resources used wholly to carry on the business or profession for a long period is termed as asset. Assessed can claim depreciation on these assets.