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Glossary

Plain-English definitions of the tax terms you will run into.

A

AYIT
Assessment Year — the year in which income earned in the previous year is assessed to tax. AY 2026-27 corresponds to income earned in FY 2025-26.

H

HRAIT
House Rent Allowance — a component of salary paid by the employer to meet rented accommodation expenses. Partially tax-exempt under Sec 10(13A).

I

ITCGST
Input Tax Credit — the credit a GST-registered taxpayer can claim for GST paid on inward supplies used in the course of business.

R

RCMGST
Reverse Charge Mechanism — a situation where the recipient of goods or services pays GST directly to the government instead of the supplier.