1.Tax Audit:
Tax audit is a compulsory audit under section 44AB of the Income-tax Act in India
which is conducted where gross turnover exceeds Rs. 1 crore/ 50 lakh from
business/profession.
Services
- Conducting of tax audit
- Filing of tax audit report in form 3CA/3CB and 3CD
2. Tax Management/Compliance:
Tax management/compliance is at the core of today’s business obligations that include
filings and payment of taxes.
Services
- Filing of income tax returns
- Filing of TDS/TCS returns
- Compliances related to advance tax
3. Tax Representation & Litigation:
Scrutiny Assessment U/S 143(3)
Scrutiny assessment refers to the examination of a return of income by giving an
opportunity to the assessee to substantiate the income declared and the expenses,
deductions, losses, exemptions, etc. claimed in the return with the help of evidence.
Purpose
In the cases selected for scrutiny, the assessing officer conducts necessary enquiries
during assessment proceedings to ensure that the assessee has not:
- Understated the income, or
- Computed excessive loss, or
- Underpaid tax in any manner.
Rectification U/s Section 154
Rectification of mistake apparent in intimation, assessment, revision and appellate
orders.
Appeals U/s 246A [i.e. CIT(A)] and 253 [i.e. ITAT]
An appeal is applying to a higher authority for a reversal of the decision of an assessing
officer/lower authority.
Revision U/s 263 & 264
Revision U/s 263 is the reversal of erroneous and prejudicial order of subordinates by
CIT/Pr. CIT. Revision U/s 264 is an alternative option available to the assessee. Instead
of going to appeal, he can approach CIT/ Pr. CIT.
Services
Representation before the tax department with respect to assessments,
investigation, survey, search and other civil cases
Representation before CIT(A) and ITAT
Representation before the Authority for Advance Ruling with respect to
residents
Filing of replies to summons and other notices
Filing of compounding applications to CCIT
4.Tax Due Diligence:
Due diligence with regard to tax includes a review of all taxes, the company is required
to pay and ensuring their proper calculation with no intention of under-reporting of taxes.
Additionally, verify the status of any tax-related case pending with the tax authorities.
Services
Documentation of tax compliance and potential issues typically includes verification and
review of the following:
- Copies of all tax returns – including income tax and withholding taxes
- Information relating to any past or present pending tax assessments against
the company
5. Tax Advisory & Opinions:
In today’s business world, every transaction/arrangement is subject to income tax. So, to
avoid surprise tax burden, tax advice needs to be sought before entering into any sort of
transaction/arrangement.
Services
- Transaction/Arrangement structuring to avoid/lessen tax burden within the
purview of tax laws - Providing opinions on domestic taxation Issues i.e. interpreting of provisions,
etc.
6. Transfer Pricing:
Specified transactions between related parties are applicable for domestic transfer
pricing regulations and compliance.
Services
A report under Section 92E in Form 3CEB needs to be filed for all the specified
domestic transactions whose individual transaction amount exceeds 5/20 crores
during the year under review.
7. Filing of income tax returns:
Salaried Employees:
I. Applicable ITR Forms:
- ITR-1 is for Resident (other than Not Ordinarily Resident) individuals
having income from salaries, one house property, other sources
(interest, Dividend etc.), agricultural income up to ₹ 5,000 and having
total income up to Rs. 50 lakhs. - II ITR 2 is applicable for salaried resident individuals, more than one
house property, Hindu Undivided Families (HUFs) and NRIs earning
more than Rs 50 lakh within a financial year.
II. Schedule AL (Assets & Liabilities):
- Schedule AL is required to be furnished by individuals and HUFs if their
total income exceeds Rs. 50 lakhs. It pertains to assets and liabilities
held at the end of the financial year, including immovable assets,
movable assets, and liabilities.
III. Foreign Equity (FA):
- Individuals who are resident and ordinarily resident (ROR) in India are
required to report their global income, including income from foreign
assets, in their Indian tax returns. - Foreign assets may include overseas bank accounts, immovable
property, financial securities, trusts, or any other interests held outside
India.
IV. Due Dates:
- The due date for filing income tax returns for salaried individuals in India
is July 31st of the assessment year (for the financial year ending on
March 31st).
V. Late Filing Fees:
- If the income tax return is filed after the due date, there are late filing
fees applicable, late filing fees for individuals whose total income does
not exceed Rs 5 lakhs is Rs. 1,000 if the return is filed after the due date
but on or before December 31st of the assessment year. It is Rs. 5,000
if filed after December 31st. For those with income above Rs 5 lakhs,
late filing fees of Rs. 5,000 apply if filed after the due date but before
December 31st, and Rs. 10,000 if filed after December 31st.
VI. Updated Return 139(8A):
1. ITR-U or Updated Income Tax Return is the form that allows you to
rectifying errors or omissions and update your previous ITR. It can be
filed within two years from the end of the relevant assessment year. An
Updated Return can be filed in the following cases:
- Did not file the return. Missed return filing deadline and
the belated return deadline - Income is not declared correctly
- Chose wrong head of income
- Paid tax at the wrong rate
- To reduce the carried forward loss
- To reduce the unabsorbed depreciation
- To reduce the tax credit u/s
- 115JB/115JC
2. Assessee will have to pay an additional tax of 25% or 50% on the tax
amount, depending on when you file the ITR-U
- 12 months from the end of relevant AY, 25% of additional
tax + interest + late filing fee - 24 months from the end of relevant AY, 50% of additional
tax + interest + late filing fee
〉 Capital Gain:
I. Sale of Property:
- Profits or gains arising from the sale of immovable property such as
land, house, building, or any capital asset attached to it. - Section 194IA, mandates the deduction of tax at source by the buyer at
the time of making payment for the purchase of immovable property. It
applies to transactions involving the sale of immovable property (other
than agricultural land) where the consideration exceeds Rs. 50 lakhs. - The applicable rate for TDS under Section 194IA (Seller to be Resident)
is 1% of the consideration amount. - Section 195 applies to any person making payment to a non-resident,
which is chargeable to tax in India, then the applicable rate for TDS
under Section 195 is 20% of the consideration amount.
II. Sale of Securities:
- Capital Gains/Loss from the sale of securities like stocks, mutual funds,
debentures, bonds, or any other financial instrument held as investments. - For securities traded on a stock exchange, STCG is taxed at 15% plus
applicable surcharge and cess. - Equity or equity-oriented mutual funds, LTCG exceeding ₹1 lakh is taxed
at 10% plus applicable surcharge and cess.
