The general budget of the country is to be presented on February 1. During the budget, many such terms are used, which people usually do not know about. However these words are related to your income, business, money. Let’s know which terms they are and what they mean ?
Exemption: Taxpayers’ income which is not within the scope of tax. That is, no tax is available on it.
Assessment Year: This is the tax Assessment year, which is the next year of any financial year. As from 1st April 2015 to 31st March 2016, if the financial year, the tax assessment will be from 1 April 2016 to 31 March 2017.
Financial Year: This is the financial year of the year, which starts from April 1 to March 31.
Previous Year: This is a financial year which comes just before the tax assessment year. It ends on March 1 and ends March 31. During this tax year the tax is to be paid on the amount earned. I.e. from 1 April 2015 to 31 March 2016, if the financial year, the tax assessment will be from 1 April 2016 to 31 March 2017.
Assessee: A person who is liable to pay tax under the Income Tax Act.
Capital Gains: Capital gains are the profits derived from the sale or transmission of capital assets.
Capital Asset: When a business or professional invests in any item or purchases for any purpose, the property purchased with this amount is called Capital Asset. It can be anything from bonds, stock markets and raw materials.
Short Term Capital Assets: Short-term capital assets are kept for less than 36 months. In the case of shares, securities and bonds, this period is 12 months instead of 36 months.
Fiscal deficit: The difference in government’s total income and expenditure is called ‘fiscal deficit’ in the economic terminology. There is information about how much money the government will need to run its operations. Lending is not included in accounting for total revenues. That is, the difference between government expenditure and income is called financial loss or budgetary deficit.
Finance Bill: Presenting the general budget through this bill, the Finance Minister proposes new taxes, etc., with the idea of increasing the state exchequer. Along with this, any amendment etc. in the current tax system in the Finance Bill is proposed. It is only after the approval of Parliament that it is implemented
Direct tax: Direct tax is tax which is the income of any person and institution, income of institutions and its source. Income Tax, Corporate Tax, Capital Gain Tax and Inheritance Tax fall into this category.
In-direct tax: Tax on goods produced is indirect tax. Apart from this, it is also imposed on import-exported goods through excise duty, customs duty and service charges.
GDP: Gross Domestic Product (GDP) is the total production of total goods within the country and services offered in the country during the financial year.
Budget deficit: When the expenditure is higher than the revenue of the government, then the situation which is born is called a budget deficit.
Fiscal deficit: The fiscal deficit is the difference between the government’s total expenditure and total revenue. This helps the government to decide how much debt she may have to take.
Excise duty: Excise duty or excise duty is a fee which is levied on the products made within the country. This is different from custom duty. Custom duty is imposed on products coming from outside the country. It seems to be on the production and purchase of the product.
Custom duty: Customs or Customs duty on goods to be imported in the country.
Balance budget: When the government’s revenue is equal to the current expenditure, then it is given the name of the balance budget.
Balance of payment: Whatever financial transactions the Government has with the country and other countries, it is called the balance of payment.
Disinvestment: When the government sells its Share in a company or institution of its operations, then it is called disinvestment. This means that the government sells the Share in a company owned by it to private companies or individuals.
Bond: The government often issues bonds to raise money. This is a certificate of credit.