Income Tax Terms for Beginners 

Previous year: The one that precedes the year of assessment. For example, if you file your taxes on the 15th of July 2023, then your previous year would be 2022-23. 

Assessment year: The one that succeeds the previous year during which your returns will be assessed and filed accordingly. If we were to use the example stated in the previous point, your assessment year would be 2023-24.

Gross total income: A sum of your salary, income from property, capital gains, profits from any business, as well as any income earned from other sources.

Deductions: These are provisions made by the government to help reduce your overall tax liability.

Net taxable income: Derived when you subtract deductions from your gross total income. The applicable tax slab would then be applied on the net taxable income.

TDS: When you receive your salary, a certain amount is deducted at the source by your employer as tax. This is referred to as Tax Deducted at Source. 

Income Tax Return: ITR is when you file for a return after having reported your income and having paid your tax dues.