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XML is a markup language same as HTML. XML tag you can define your self for storing data. XML store (describe) data, nothing more (either temporary or permanent). XML was designed for describing well formed data. Also XML have some strict rules. That rules follow every XML document.
XSD (XML Schema Definition) is a World Wide Web Consortium (W3C) recommendation that specifies how to formally describe the elements in an Extensible Markup Language (XML) document.ust as in XML and HTML, elements are defined within a set of tags. XSD has several advantages over earlier XML schema languages, such as Document Type Definition (DTD) or Simple Object XML (SOX). XSD is written in XML, which means that it doesn't require intermediary processing by a parser.