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Income Tax

While direct taxes are levied on taxable income earned by individuals and corporate entities, the burden to deposit taxes is on the assessees themselves. On the other hand, indirect taxes are levied on the sale and provision of goods and services respectively and the burden to collect and deposit taxes is on the sellers instead of the assessees directly.

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Tax Income Reports

Tax Planning and Savings

Tax planning in India offers several provisions such as deductions, exemptions, contributions, and incentives. For instance, Section 80C of the Income Tax Act, 1961, offers several types of deductions on various tax-saving instruments. Tax planning is a focal part of financial planning. It ensures savings on taxes while simultaneously conforming to the legal obligations and requirements of the Income Tax Act, 1961. The primary concept of tax planning is to save money and mitigate one’s tax burden. However, this is not its sole objective.

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Direct Tax Consultancy

Income tax is applicable on the income earned by a person or entity in India. Income Tax is regulated by the Central Government and the applicability of income tax differ between salaried individuals, professionals, businesses and more. Many persons and entities have a PAN from the Income. Persons earning income over a certain amount must pay income tax, file returns and submit tax audit report. Income tax consultants provide all services relating to the income tax regulation in India. 

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TDS & TCS Compliances

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. TCS is the tax which is collected by sellers while selling something to buyers. TDS deduction is applicable on payments such as salaries, rent, professional fee, brokerage, commission, etc. TDS refers to the tax which is deducted when the buyer of goods or services, such as government departments, makes payments under a business contract. On the other hand, TCS refers to the tax which is collected by the electronic commerce operator when a seller supplies some goods or services through its website and the payment for that supply is collected by the electronic commerce operator.

TDS and TCS compliance

Trust / AOP Tax Compliances

A case income of the AOP/BOI shall be taxable at maximum marginal rate (i.e., 30% plus surcharge and HEC as applicable). But if income of any member of AOP/BOI is taxable at a rate higher than maximum marginal rate then total income of AOP/BOI shall be chargeable to tax at such higher rate of tax. For the purposes of this section, the individual shares of the members of an AOP or BOI in the income of AOP/BOI shall be deemed to be indeterminate or unknown if such shares are indeterminate or unknown on the date of formation of such AOP or BOI or at any time thereafter.

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Accounting Documents

Corporate Tax Filings

The basic taxable limit is Rs. 2.5 lakh. So, if your income before deductions is above Rs 2.5 lakh you need to file your business tax return. For companies, firms and Limited Liability Partnership (LLP) a business tax return has to be filed irrespective of profit or loss. We give our service to you file corporate tax.

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Salaried ITR

In this case, for salaried employees, the primary source of income should be via salary. For all such individuals, the income tax returns can be filed online with the help of the ITR-1 or the SAHAJ form. However, the maximum income for the assessment year 2019-20 for ITR-1 has been capped at Rs. 50 lakh or less. Besides the basic salary there are other components being benefits which are wholly or partially taxable. Further, there are tax saving options like eligible investments under SEC 80C , donations made etc.

Salaried ITR

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Assessment of Advance Tax

Income tax assessment is the process of collecting and reviewing the information filed by assesses in their income tax returns. At the end of each financial year, all persons and entities required to file an income tax return by self-computing the amount of income earned and pay the tax due. Hence, an income tax assessment would happen subsequent to the filing of an income tax return. In this article, we look at the different types of income tax assessment and their implications. Every assesse, who earns income beyond the basic exemption limit in a Financial Year (FY), must file a statement containing details of his income, deductions, and other related information. This is called the Income Tax Return (ITR). Once you as a taxpayer file the income returns, the Income Tax Department will process it. 

Assessment of advance tax

Income Tax Refund

Income Tax refund arises in case of a mismatch between the tax amount paid and the actual payable amount. If the amount paid is higher than the actual amount payable, a refund is initiated. The Form 30 is used for the same purpose. Under the income tax and other Direct Tax laws, tax refunds arise in those cases where the amount of tax paid by a person (or paid on his/her behalf) is greater than the amount on which he/she is properly chargeable. This is noted under Sections 237 to 245 of the Income Tax Act, 1961. In order to find the amount of income tax that you will get back as the refund, you must calculate the tax liability that is associated with you. If the amount that you have paid as taxes is more than the tax liability, then you will get the extra amount as a refund.

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About Tax

Everyone who earns income above a certain amount is subject to income tax. Your income could be from salary, interest income from savings, income from mutual funds, sale of property or business or professional income. Income tax rates are pre-decided at the start of the year in the Union Budget (in the Parliament of India). The tax paid or deducted on these incomes is called the income tax.

  • Income Tax – This is taxes an individual or a Hindu Undivided Family or any taxpayer other than companies, pay on the income received. The law prescribes the rate at which such income should be taxed

  • Corporate Tax – This is the tax that companies pay on the profits they make from their businesses. Here again, a specific rate of tax for corporates has been prescribed by the income tax laws of India

Benefits of filing tax
  • Majority of banks ask for a copy of income tax returns for at least three consecutive years to sanction a loan. So if you are planning to take a loan in the future, it can help you if you can furnish your I-T returns.

  • As an individual if someone has invested in fixed deposits the interest income is chargeable to TDS at the rate of 10% irrespective to the fact that the individual is liable to pay income tax or not. By filing income tax return you will get refund of TDS deducted if the income is below the taxable limit.

  • If anyone has suffered losses in a year, then by filing income tax return he can carry forward that loss for next eight subsequent years to set off the same by the future income. This can help reduce the burden of tax in future years.

  • If you are traveling overseas, foreign consulates ask you to furnish ITR receipts of the last couple of years at the time of the visa interview. Some embassies may ask for ITR receipts of previous three years, while some others may ask for the most recent certificate.

  • If you plan to start a business and need to fill a government tender, you will need to show your tax returns of the previous years. This, again, is to show proof of your financial status and whether you can support the payment obligation or not.

  • Salaried persons get Form 16 as their income proof but businessmen, consultants and partners of firms do not get Form 16. Hence, ITR receipts become an even more important document for them, provided their annual income exceeds the basic exemption limit of Rs 2.50 lakh. For all sorts of financial transactions, ITR receipts will be the only proof of income and tax payment for the self-employed.

  • If you don’t file ITR, the belated return could lead to extra interest on monthly basis for the remaining tax payable by you. Penalties and assessments: If any person liable to file tax returns does not file returns within the due date, then he is liable to pay penalty of up to Rs 10,000 for not filing the return within the due date in addition to the assessment findings.

Who has to file Tax
  • Anybody who is less than 60 years of age and has an annual income more than Rs2.5 lakh has to file income tax returns, according to the Income Tax Act.  For senior citizens, the cut-off is Rs3 lakh, and for those who are more than 80 years old, the cut off is Rs5 lakh.

  • It is mandatory for a company to file income tax returns if the company has incurred an income or a loss during the financial year.

  • Return filing is compulsory if you want a refund.

  • You have to file your income tax return if you are a resident of India but have property or financial interest in an entity outside India. The same is true is you are a resident of India but have signing authority in a foreign account.

  • The return has to be filed for any income from property under a charitable trust, religious purposes, research or for a political party, medical institution, hospital or any other institution.

  • You must file a return if you have entered into any transaction under the Annual Information Return.

  • Individuals, Hindu Undivided Family (HUF), Association of Persons(AOP) and Body of Individuals (BOI)

  • Firms

  • Companies

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How We Help You Solve Your Taxes

Complete Online Document Submission & Application Tracking

  • CA Guided I-T Return Filing.

  • 'Guaranteed Tax Saving' Through Tax Planning Advisory.

  • Complete And Expert Solutions To I-T Notices.

  • End To End Tax Advisory Services.

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