A tax allowance is an exemption you can enjoy on income tax payments related to certain purchases or transactions. Such allowances help you save money on taxes and include Leave Travel Allowance, House Rent Allowance, Children Allowances and more. They allow you to deduct all or some money spent towards specific payments from your taxable …
Post Type Archives: Glossary
Tax Credit
Tax credit is a sum of money that you can directly subtract from the taxes that you owe. It is not the same as deductions and exceptions, as it directly reduces your tax bill rather than just lowering your taxable income. You can categorise tax credit into 2 types. One is refundable, where you get …
TDS
While computing your taxes, understanding what is TDS is crucial. TDS, meaning tax deducted at source, refers to the income tax that is collected on your behalf right at source. Generally, you will receive rent, salary, interest, commission, or other income after the paying entity deducts the applicable tax. If you are the one who …
Term Deposit
A term deposit usually refers to a fixed deposit where you invest a particular sum of money into an account with a bank, post office or company and earn interest at a fixed rate over a specific period of time. Sometimes, recurring deposits may also come under a term deposit where you invest a certain …
Transaction
A transaction refers to an exchange of goods, services, or money between parties. It can be a purchase, sale, or transfer of assets or services. Transactions occur in various forms such as online and offline purchases, payments, investments and other financial activities.
Transaction Fee
Are you trying to make a payment and wondering what is a transaction fee? The answer is simple. This fee refers to the cost that payment service providers charge every time they process an electronic payment. These charges are typically applicable on credit cards, whether it is a physical or an online transaction. Here is …
Turnover
Turnover refers to the revenue or income a company makes over a particular duration. It is the total or gross revenue that doesn’t consider any costs of operation or related expenses. In accounting, turnover is also used to compute the speed at which a company can get cash from its accounts receivable. In investing it …