Everything you must know about Income Tax Consultancy

Income tax act was passed in 1961. Income tax is a term that includes taxes any taxpayer pays to the government, on income received. Whether you are a newbie or an old-hand taxpayer, question yourself, have you ever thought about saving tax on income? or Is your tax planning proper enough to save maximum tax on your income?

Often attributed to Ben Franklin is this famous quote: “Nothing is certain except for death and taxes.”

Paying taxes is necessary, but the hard part is its management. Managing taxes, in a legal format, without breaking any rules seems near to impossible.

Tax laws governed by the income tax department are very complex and so is filing and managing your taxes, but saving tax or planning your taxes, actually, is very easy with the help of proper income tax consultancy services.

As a part of chartered accounting services, tax consultancy services are provided by experienced chartered accountants, who professionally guide and help you with your taxes.

Tax consultants provide a number of quality tax services, which help you in planning, managing, and save tax on your income.

How does Tax Consultants help you?

A general perception of chartered accountants and tax consultants is that they just file income tax and prepare accounting records for businesses. In reality, they do more than just record-keeping and tax filing, here are in how many ways income tax consultants help you with your finances.

Tax planning & savings:

Tax consultants plan and help you save a lot from your taxes. There are several legal methods through which these professionals manage and plan your taxes beforehand, increase your savings, and keep your income under low tax slabs.

Tax refunds and computations:

Before the filing of income tax, hiring income tax consultants can be financially beneficial. Professional advisors compute actual taxes based on your income, and with experience in finances, calculate maximum refunds and lower your tax liability and save a lot from your income.

Filing of income tax:

While filing income tax for you, tax consultants make sure no mistakes occur, and all information is correct and is filled in their respective fields. These professionals help you with the proper filing of income tax.

Investment planning:

Whether you are a businessman or an employee, these chartered accountant professionals work on their toes and help you with planning investments, reducing maximum risks possible, that guarantee you big returns and long financial stability.

Consultancy on tax and financial matters:

Tax laws are confusing and hard to understand for a common person. Income tax consultants provide specialized consultancy on tax and financial matters, based on several legal and moral factors. By hiring a tax consultant, you can easily get solutions to all your tax and financial matters.

Maintenance of Income Tax records:

Filing of tax and refunds are important and to be done properly, but proper record maintenance of taxes, keeping in mind all rules, prohibitions, acts, heads of income, deductions, penalties, is not an easy task. Hiring a professional income tax consultant, for maintenance of income tax records not only keeps your tax practices short and smooth, but will also save your time, money, and reduce your liabilities too.

Benefits of Income Tax Consultancy.

Apart from the above tasks, tax consultants benefit their clients by

  • Saving a lot of time in preparing returns
  • Updating clients about tax laws and practices
  • Communicating and explaining all tax issues on time
  • Planning for taxes beforehand
  • Handle complex calculations
  • Prepare all documents and records properly
  • Frequent research and analysis of tax legislation
  • Continuous meetings for updates
  • Keeping compliant with tax obligations
  • Working with profit arrangements

Reasons why you should hire tax consultant/advisor.

  • To maximize your tax deductions and credits
  • Transferring your total income from a high tax slab range to a lower tax slab range
  • Defer most of the taxes to future financial years
  • Taking advantage of the current economy-boosting tax laws
  • Managing profits and losses made on capital assets to balance each other

Skills and qualifications income tax consultants have.

As a professional, tax advisors/consultants carry some very important and demanded skills and qualifications. Some of their professional skills are

  • Updated knowledge about changes in tax laws
  • Expertise in accountancy and finance
  • Experience in handling economic, law, financial and management issues
  • Good with numbers
  • Logical and analytical mindset
  • Excellent communication and interpersonal skills
  • Good influential and negotiation skills
  • Dynamic organizing and planning skills
  • Solve problems with accurate solutions
  • Proper time management
  • High ability to work under tight deadlines
  • Attention to every detail needed
  • Flexibility in approach towards tasks
  • Confidentiality in work, for clients comfort
  • Better commercial understanding
  • Systematized record maintenance.

Income tax advisors have expert knowledge in areas like corporate tax, inheritance tax, trusts and estates, VAT, TDS, TCS, personal tax, national insurance, and many more.

Whether you are an employee or own a business, income tax consultancy is beneficial for both.