Hello
friends! The following are some jargons associated with the budget.
Tax
Residency Certificate: A certificate from foreign tax authorities
which states that an entity is a foreign tax resident and is eligible to claim
treaty benefits.
Inflation-Indexed
Bonds: Bonds aimed at helping savers protect the principal and interest
of their investments. The principal rises with higher inflation.
Qualified
Foreign Investors: Foreign investors or entities which are
eligible to invest directly. They must be from countries that follow anti-money
laundering rules.
Securitisation: Converting
future cash flows from loans into marketable securities. Securities are issued
with loans as the underlying.
Equity
linked saving scheme: Resembles any diversifies mutual fund but
investment in it is eligible for Section 80C rebate. The investment is locked
for three years.
Indirect
Taxes: Taxes like excise, service tax and customs which are paid by the
producer, service provider or the importer, but their final impact is on
consumers.
Fiscal
Consolidation: Budget measures aimed at bringing down the government’s fiscal
defcit to a manageable level, usually 3% of the GDP.
Employee
Stock ownership (ESOPs): These allow employees to become stakeholders
in their companies by giving them the right to buy shares at a predetermined
price.
Infrastructure
Debt Fund: A trust or a finance company that is set up to channelize long
term funds into infrastructure projects.
Investment
Allowance: A tax break given to companies for investment in plant and
machinery and is over and above the depreciation benefits enjoyed by them.
Abatement: it is like a
discount with reference to taxes. Abatement is given when the tax is not levied
on the full amount but on a portion of the transaction.
(Source: The
Economic Times)
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