Learn Glossary Glossary The terms you meet on the calculators and in the lessons, defined plainly. Limits and rates are read from the same tables the calculators use, so they are always the current year's.
CAGR The steady yearly growth rate that takes a starting value to an ending value. Exit load A fee some mutual funds charge if you redeem units within a set period of buying them. Expense ratio (TER) The yearly fee a mutual fund charges, as a percentage of what you hold, taken out of the NAV. Grandfathering (property) For property bought before the 2024 change, the option to be taxed under the older rule if it costs less. HRA exemption The part of a house rent allowance that is not taxed, for someone paying rent, under the old regime. Indexation Raising an asset's purchase cost by inflation before working out the taxable gain. Marginal relief A cap that stops a rupee of extra income from costing more than a rupee of extra tax at a threshold. Maturity value What a deposit or a savings policy pays out when its term ends, interest or bonuses included. Moratorium A period at the start of a loan when no EMI is due, though interest usually still runs. NAV (net asset value) A mutual fund unit's price: the fund's assets minus its liabilities, divided by the units in issue. Paid-up value The reduced sum a policy keeps paying if you stop premiums but do not surrender it. Section 80C The deduction for set investments and payments, up to one shared ceiling a year, under the old regime. Section 80CCD(1B) An extra deduction for your own NPS contribution, over and above the 80C ceiling, under the old regime. Section 80D The deduction for health insurance premiums for yourself, your family and your parents, under the old regime. Section 87A rebate A reduction that cancels income tax for residents whose taxable income is under a set limit. Standard deduction A flat deduction from salary or pension income that needs no proof of spending. Step-up SIP A SIP whose monthly amount rises by a set percentage or amount each year. Sum assured The amount an insurance policy guarantees to pay, as written in the policy. Surcharge An additional percentage of income tax charged on high incomes, before cess. Surrender value What an insurer pays if you end a policy before its term is over. XIRR The annual return on money invested at different dates, such as SIP instalments and top-ups. 
