Here we have given 15 important terms or words of “income tax terms in Odia language”, which is most necessary for the commerce students and also for them who are going to pursue a career under the income tax department.

Tax is a compulsory extraction by the central govt. From the general public, organization, Hindu undivided family, AOP, BOI, artificial juridical persons. Etc.

It is a financial charge which is imposed by the government of India who is the legislative authority . Tax is not a donation or voluntary contribution by the public rather it is an enforced contribution by the public. 

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Income tax is a financial charge which is  imposed by the central government of India over the income of the general public, individual, corporate, and taxpayers etc. Income tax is mandatory which is charged by the government of  India. 

Central govt charges tax except income comes from the agricultural sector. It is not a voluntary contribution or donation from persons rather it is bound to pay to the government. The tax is charged annually over income earned in the previous year. The rate of income tax differs from person to persons according to their income which is prescribed by the income tax department.

Income Tax Terms in ODIA Language

It is a form prescribed by the income tax department through which the income earned by a person/individual in financial year and taxes paid on such income are file. The forms are known as ITR forms. And one can download all ITR forms through the income tax website https://incometaxindia.gov.in for manual filing and another website https://incometaxindiaefiling.gov.in for e-filing that means filing through online (internet).

The filing of income tax return is not only mandatory but also the legal obligation of every person whose total income exceeds the exemption limit of income during the previous year.

Custom Duty is a financial charge imposed over the export and import of goods. Export means goods transfer from our country to an outside country. And import means the goods transfer from outside country to our country.

Excise duty is the financial charges imposed by the govt of India over the manufacturing goods

GST stands for goods & services tax means one tax for one product. Due to cascading effects of the taxes the government of India introduced the new  taxes system where the taxes are to be charged at one time .That’s why you can say this as goods and simple tax also.

it is the direct tax because the central govt directly charges over the income of the general public.

Where the income is categorized into different types of groups on the basis of the amount of income earned. This  Tax is charged at different rates on the different range of income slab. And Each such group is known as an Income Tax Slab.

Residential Status doesn’t depend upon the domicile , nationality and territorial connection of the individual. An Indian citizen who was born in India may not be the residents of India whereas an American citizen may be the residents of India. Thus residential status directly depends upon the physical staying of the individual i.e. How many days month and year he/she has been physically staying here and there. This physically staying depicts the residential status of an individual.

HUF stands for Hindu Undivided Family which comes under the persons in the tax purpose. Hindu Undivided Family is a relationship which is created through the operation of Hindu law. The head or manager of HUF  is called KARTA and its members are called COPARCENERS.

It means the period of 12 months commencing on 1st April every year. For example the current assessment year 2020-21 started on 1st April 2020 and it will end on 31st march 2021. The assessment year is the financial year during which income of a person relating to the relevant previous year is assessed/calculated to tax. In this financial year every person who is liable to pay tax under IT act their return of income is processed by the income tax department. The calculations of tax are made this year. So this is known as income tax year.

It is the financial year preceding the assessment year in which income is earned. So that, this year is also known as income year. The next year in which income is computed to tax is known as assessment year. For example: income earned during the previous year 2019-20 is taxable in the assessment year 2020-21.

In case of newly set up business the first previous year will be from the date of starting of business to immediately following 31st march. For example : if a new business is set up on 26th Jan 2020 then the first previous year will be 26th Jan 2020 to 31st march 2020.

It is a systematic arrangement of financial affairs to minimize tax liability within the law. It is purely legal which is approved by the income tax department to allow eligible taxpayers or persons to claim certain adjustment and deduction to income. Here the individual, persons, entity, firm, organization, etc. used tax avoidance methods to minimize their tax liability which is considered to be legal.

Tax evasion is a method of directly avoided taxes which is illegal. In this method the taxpayer tries to reduce his tax liability by suppressing or minimizing income and increasing & inflating expenditures. For ex: if an individual received payment in cash and doesn’t declare that income to the government for taxation purposes. Tax evasion is not only a crime, illegal activities but also an anti-national practice. By doing this practice a person can be penalized and go to jail.

Every person who is eligible under tax purpose must be liable to pay tax. Tax management is nothing but management of finance for payment of tax in time. If the assessee makes payment of tax in time then his/her interest or penalty in taxes will be minimized or will not be paid.

Tax planning is an arrangement of financial activities in such a way that the taxpayer can avail maximum tax benefit. The assessee can get full advantage of all eligible tax exemptions, rebates, deduction. Concessions & all allowances permitted under the income tax act 1961. For example the assessee can do tax planning by investing his/her money in SEZ unit and can also donate to charity & NGO through which an assessee can eligible for deduction u/s 80G.