Business, GST & tax terms explained.

Compliance comes with a lot of acronyms. Here's what they mean, in plain English.

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Advance tax: Income tax paid in instalments during the year (June, September, December, March) when your tax liability exceeds ₹10,000.
AGM (Annual General Meeting): A yearly meeting of a company's shareholders to adopt accounts and appoint auditors. Must be held within six months of the financial year-end (OPCs are exempt).
AIS (Annual Information Statement): A statement on the income-tax portal showing your income, investments and transactions reported by banks, employers and others. Your ITR should match it.
AOC-4: The MCA form a company uses to file its audited financial statements every year, within 30 days of the AGM. Learn more →
Authorised capital: The maximum share capital a company can issue, stated in its MoA. It affects stamp duty and MCA fees, but doesn't have to be paid in.

CIN (Corporate Identity Number): A 21-character number the MCA assigns to every company at incorporation. It must appear on letterheads, invoices and the website.
CMP-08: A quarterly statement-cum-challan filed by GST composition taxpayers to pay tax. Learn more →
Composition scheme: An optional GST scheme for small businesses to pay tax at a low flat rate on turnover, without input tax credit. Learn more →

DIN (Director Identification Number): A unique number issued by the MCA to every company director, valid for life.
DIR-3 KYC: The KYC filing every DIN holder must complete with the MCA when due, failing which the DIN is deactivated. Learn more →
DPIIT recognition: Recognition as a start-up by the Department for Promotion of Industry and Internal Trade, unlocking Startup India benefits. Learn more →
DSC (Digital Signature Certificate): An electronic signature used to sign forms on the MCA, income-tax and GST portals. Issued by licensed certifying authorities.

Form 16: A certificate from your employer showing salary paid and tax deducted at source during the year.
Form 26AS: A tax credit statement showing TDS, TCS, advance tax and self-assessment tax deposited against your PAN.

GSTIN: The 15-digit GST identification number. The first two digits are the state code and the next ten are the PAN.
GSTR-1: The GST return for reporting outward supplies (sales), filed monthly or quarterly.
GSTR-3B: The summary GST return where you report sales, claim input tax credit and pay tax — monthly or quarterly.
GSTR-9: The annual GST return summarising all monthly or quarterly returns for a financial year. Learn more →

INC-20A: The declaration of commencement of business a company must file within 180 days of incorporation. Learn more →
Input tax credit (ITC): Credit for GST paid on purchases, which can be set off against GST payable on sales.

LLP agreement: The agreement between LLP partners setting out capital, profit share, rights and duties. Must be filed with the MCA within 30 days of incorporation.
LUT (Letter of Undertaking): A yearly filing that lets exporters supply goods or services without paying IGST upfront. Learn more →

MGT-7 / MGT-7A: The annual return of a company filed with the MCA within 60 days of the AGM. MGT-7A is the simplified version for OPCs and small companies.
MoA and AoA: The Memorandum of Association (a company's objects and capital) and Articles of Association (its internal rules).

Nominee (OPC): The person named in an OPC's incorporation documents who becomes the member if the sole owner dies or is incapacitated.

Paid-up capital: The share capital shareholders have actually paid for. There's no minimum for a private limited company.
Presumptive taxation: A scheme letting small businesses and professionals declare a fixed percentage of turnover or receipts as profit, without detailed books.

QRMP: Quarterly Return Monthly Payment — a GST scheme for small taxpayers to file returns quarterly while paying tax monthly.

ROC (Registrar of Companies): The MCA office that registers companies and LLPs in a state or region and administers their filings.

SPICe+: The MCA's integrated web form for incorporating a company, which also allots DIN, PAN, TAN, GSTIN (optional), EPFO and ESIC registrations.

TAN: Tax Deduction and Collection Account Number — needed by anyone who deducts or collects tax at source.
TDS (Tax Deducted at Source): Tax deducted by the payer when making certain payments — salary, rent, professional fees — and deposited with the government. Learn more →

Udyam registration: Free online registration that classifies a business as micro, small or medium, giving access to MSME benefits. Learn more →

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