Glossary

Biosimilars

• It is a medicine that is very close in structure and function to a biologic medicine (also called the reference product).

Rare Earth Elements (REE)

• REEs are a set of 17 elements including 15 lanthanides plus scandium and yttrium.

• TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers.
• It enables discounting of invoices through an auction mechanism to ensure prompt realisation of trade receivables.

Minimum Alternate Tax (MAT)

• It was created to prevent companies from avoiding tax by using excessive exemptions or incentives.

• It ensures that all companies pay at least a minimum level of tax each year, regardless of their regular taxable income.

Buyback

• Buy-back is the process by which Company buy-back it's Shares from the existing Shareholders usually at a price higher than the market price.

Monetisation

• It is the process of creating new/alternative sources of revenue by unlocking the economic value of underutilised public assets. It is also known as asset or capital recycling. It does not necessarily mean disinvestment of the asset.

Domestic Tariff Area (DTA)

• It means the whole of India (including the territorial waters and continental shelf) but does not include the areas of the SEZ. Hence, all the territory outside the SEZ is the DTA.

Basics Customs Duty

• Basic Customs Duty refers to the tax imposed on the goods when they are transported across the international borders. The customs duty is levied under the Customs Act 1962.

Liberalized Remittances Scheme (LRS)

• LRS is a scheme by RBI that allows Indian residents to send money abroad for personal reasons. 

Capital Gains Tax

• It is increase in the value of wealth of a bondholder due to an appreciation or reduction in the price of her bonds in the bond mark.

Security Transactions Tax

• Securities transaction tax is a direct tax that is levied on the sale of securities on the stock exchanges like equity shares, derivatives (Futures and options), and units of equity mutual funds.

Safe Harbour Rules 

• Under this clause, a fund will be exempt if it does not have a business connection in India.

Tax Deducted at Source (TDS)

• TDS is the tax which is deducted on a payment made by a company to an individual, in case the amount exceeds a certain limit.

Tax Collected at Source (TCS)

• It is an additional amount collected as tax by a seller of specified goods from the buyer at the time of sale over and above the sale amount and is remitted to the government account.