Taxes are considered to be the “cost of living in a society”. It levied by the Govt. to meet the common welfare expenditure of the society.
Type of Taxes
1. Direct taxes – Tax levied directly on income of a person. E.g.: Income tax.
- Income Tax
- Tax on undisclosed foreign income and assets
2. Indirect taxes – Tax is levied on a price of a goods and services. E.g.: GST
- Goods and Services Tax (GST)
- Custom Duty
1. Came in to force on 1st April 1962.
2. Extends to the whole of India.
3. Contains sections 1 to 298 and schedules 1 to 14.
Income Tax
- PAN/TAN Application/Changes
- Return filing for Individuals/Companies/Partnership/ Proprietorship/ LLP/HUF/ Trust
- TAX Audit Requirement under Income Tax Act, 1961
- Transfer Pricing Requirements
- Appeals/Scrutiny/Cases
- TDS/TCS Return filings along with maintenance of TDS/TCS register as required
Goods and Services Tax
- Registration
- Monthly return filing under GST viz. GSTR-3B, GSTR-1 etc.
- Annual Return Filing
- Auditing
Professional Tax
- Registration
- P. Tax payment
- Return filing
- Departmental Queries Resolution
How to File Income Tax Return ITR?
The income tax return is a form where taxpayers state their tax liability and deductions according to the form’s category and demand.
Step-by-step process to file an ITR
Step-1- Visit the Income Tax Department’s official portal.
Step-2- Register with PAN, which is your user ID. Registered users can click on ‘Login Here.’
Step-3- Navigate to e-file and click on ‘Income Tax Return.’
Step-4- From the drop-down menu, choose the ITR form number and AY. You have to select “Original/Revised Return’ as the filing type, and ‘Prepare and Submit Online’ as the submission mode.
Step-5- Click on ‘Continue.’
Step-6- Fill in the essential details demanded in that ITR form.
Step-7- Calculate the payable tax.
Step-8- From the ‘Taxes Paid and Verification’ tab, select the relevant option.
Step-9- Next, select ‘Preview and Submit.’
Step-10- Complete the verification process either by Aadhaar OTP, electronic verification code (EVC) through details of bank account, bank ATM, details of Demat account, or by dispatching a filled ITR-5 (either speed post or normal) to the IT Department.
Step-11- For final submission, type OTP/EVC sent to your registered mobile number within its validity period and follow such instructions to submit.
TAX Audit Requirement under Income Tax Act, 1961
A taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore and Profession exceeds Rs. 50 Lakhs in the financial year. Section 44AB of the income tax act, 1961 lays down certain conditions for applicability of tax audit in the provisions of Sec 44AB(a); Sec 44AB(b); Sec 44AB( c) & Sec44AB(d).
Section44AB(a)
It is obligatory for the persons carrying a business and his total sales turnover gross receipt is more than one crore, to get his accounts audited by Chartered Accountants.
Section 44AB(b)
An individual Assessee involved in the profession Service with a gross receipt that exceeds Rs. 50 lakh during the previous year is mandatory to get his accounts audited by chartered Accountants.
Section 44AB(c)
Sec 44AB(c) provides that where the assessee is engaged in a business to which the provisions of section 44AE, 44BB or 44BBB apply and he claims his profit to Be lower than the deemed profits as per the respective section, he shall be liable for tax audit if his total income exceeds maximum amount not chargeable tax.
TDS/TCS Registration
Tax Deducted at Source and Tax Collected at Source are both incurred at the source of income. 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.
REGISTRATION PROCESS:-
- Open http://tdscpc.gov.in/ and make login as usual. You will find a link with words “Register at e-filing site” on left side panel of Quick Links. Click on that.
- Now you will find the following screen. Click on “redirect”.
- Fill up the details there and click on submit. Now you will get a message as under. Read it carefully.
- Now go to http://incometaxindiaefiling.gov.in/ and make usual login by PAN, D.O.B. and password and put cursor on “worklist” and click on “For your action”. Screen will appear with all details like PAN, Name, Mobile number, Email ID etc. Go through it carefully and if there is any mistake at data entry level then “reject” the same, otherwise click on “approve”.
- Then you will get the message as “Request has been approved successfully”.
- Make “login” to the same website (http://incometaxindiaefiling.gov.in) with “TAN” as ID and give the password which you have set at the time of this registration. Now put a curser on “TDS” menu and select “Upload TDS” (Actually it should be “Upload TDS/TCS”).
TDS/TCS Return Filings
A person who is liable to deduct tax at source has to file the TDS return as part of the compliance. A TDS return is submitted by Tax Deductor in respect of every quarter with the Income Tax Department.
Generally, tax is deducted on transactions such as Salaries, payment to the professionals and contractual basis, payment of rents exceeding certain amount, etc.
Process for TDS/TCS Return Filing:-
- You can file your TDS/TCS returns online, either on the income tax department’s website.
Documents Required For TDS/TCS Return Filing:-
- TAN Number
- Tax Paid Receipt
- Details of tax deducted
- Details of Supplies
Benefits Of TDS/TCS Return Filing:-
- To avoid the penalty
- To prevent an additional penalty
- To facilitate reconciliation of the ITR
- To avoid the cancellation of the expenditure
Goods and Services Tax
Goods and Services Tax (GST) is an indirect tax (orconsumption tax) used in India on the supply of goods and services.
The categories and eligibility for GST registration:
- Aggregate Turnover
- Inter-state Business
- E-commerce Platform
- Casual Taxable Persons
- Voluntary Registration
Types of GST Registration:-
- Normal Taxpayer
- Composition Taxpayer
- Casual Taxable Person
- Non-Resident Taxable Person
Goods and Services Tax Registration
Documents required for obtaining GST registration:-
- Certificate of Incorporation
- A passport-size photo of Promoter/Partner
- Photo of the Authorised Signatory
- Letter of Authorisation
- Copy of Resolution passed by BoD/ Managing Committee and Acceptance letter
- Electricity Bill
- Legal ownership document
- Municipal Khata Copy
- Property Tax Receipt
- The first page of PassBook
- Bank Statement
- Cancelled Cheque
Step-by-step Guide explaining GST Registration Process:-
- Go to the GST Portal
- Generate a TRN by Completing OTP Validation
- OTP Verification & TRN Generation
- TRN Generated
- Log in with TRN
- Submit Business Information
- Submit Promoter Information
- Submit Authorised Signatory Information
- Principal Place of Business
- Additional Place of Business
- Details of Goods and Services
- Details of Bank Account
- Verification of Application
- ARN Generated
Monthly return filing under GST viz. GSTR-3B, GSTR-1 etc.
GST return is a form that a taxpayer registered under the Goods and Services Tax (GST) law must file for every GSTIN that he is registered.
GSTR-1
GSTR-1 is to be filed by all normal taxpayers who are registered under GST, including casual taxable persons. Any amendments to sales invoices made, even pertaining to previous tax periods, should be reported in the GSTR-1 return by all the suppliers or sellers.
The filing frequency of GSTR-1 is currently as follows:
- Monthly, by 11th* of every month- If the business either has an annual aggregate turnover of more than Rs 5 crore or has not opted into the QRMP scheme.
- Quarterly, by 13th** of the month following every quarter- If the business has opted into the QRMP scheme.
GSTR-3B
GSTR-3B is to be filed by all normal taxpayers registered under GST. The sales and input tax credit details must be reconciled with GSTR-1 and GSTR-2B every tax period before filing GSTR-3B.
The filing frequency of GSTR-3B is currently as follows:
- Monthly, 20th* of every month
- Quarterly, 22nd of the month following the quarter for ‘X’** category of States and 24th of the month following the quarter for ‘Y’** category of States.
GSTR-4
GSTR-4 is the annual return that was to be filed by the composition taxable persons under GST, by 30th April of the year following the relevant financial year.
GSTR-5
GSTR-5 is the return to be filed by non-resident foreign taxpayers, who are registered under GST and carry out business transactions in India.
GSTR-5A
GSTR-5A refers to a summary return for reporting the outward taxable supplies and tax payable by Online Information and Database Access or Retrieval Services (OIDAR) provider under GST. The due date to file GSTR-5A is the 20th of every month.
GSTR-6
GSTR-6 is a monthly return to be filed by an Input Service Distributor (ISD). It will contain details of input tax credit received and distributed by the ISD. The due date to file GSTR-6 is the 13th of every month.
GSTR-7
GSTR-7 is a monthly return to be filed by persons required to deduct TDS(Tax deducted at source) under GST. The due date to file GSTR-7 is the 10th of every month.
GSTR-8
GSTR-8 is a monthly return to be filed by e-commerce operators registered under the GST who are required to collect tax at source (TCS). The GSTR-8 return is to be filed on a monthly basis by the 10th of every month.
GSTR-9C
GSTR-9C is the reconciliation statement to be filed by all taxpayers registered under GST whose turnover exceeds Rs.2 crore in a financial year, as per the GST law.
GSTR-10
GSTR-10 is to be filed by a taxable person whose registration has been cancelled or surrendered. This return is also called a final return and has to be filed within three months from the date of cancellation or cancellation order, whichever is earlier.
Auditing
An audit is an examination of accounting records undertaken with a view of establishing whether they correctly and completely reflect the transactions to which they purport to relate.
It is done by the independent person or body of persons qualified for the job with the help of statements, papers, information and comments received from the authorities so that the examiner can confirm the authenticity of financial accounts prepared for a fixed term and report that:-
- The balance sheet exhibits an accurate and fair view of the state of affairs of concern;
- The profit and loss accounts reveal the right and balanced view of the profit and loss for the financial period;
- The accounts have been prepared in conformity with the law.
- And shows True $ Fair view of picture.
In short, an audit implies an investigation and a report. The process of checking and vouching continues until the study is completed and the auditor enables himself to report under the terms of his appointment.
Audit regulator National Financial Reporting Authority (NFRA) has urged the audit fraternity to refrain from taking shelter under the adulated description of the auditor “being only a watchdog and not a bloodhound”.
Professional Tax
Professional tax is a kind of tax on income levied by State Government (not all states in the country chose to levy professional tax). The State Government is also empowered to make laws with respect to professional tax though being a tax on income under Article 276 of the Constitution of India which deals with tax on professions, trades, callings and employment.
The professionals earning an income from salary or other practices such as a lawyer, teacher, doctor, chartered accountant, etc. are required to pay professional tax. In case of salaried and wage earners, the professional tax is liable to be deducted by the employer from the salary/wages and the same is to be deposited to the state government. In case of other class of individuals, this tax is liable to be paid by the employee himself. The tax calculation and amount collected may vary from one state to another, but it has a maximum limit of INR 2500/- per year.
Professional Tax Registration Process
- Memorandum Of Association
- Articles Of Association
- PAN Card
- Lease Agreement
- Employer Address Proof and ID Proof and photos
- Employee list with salary details
- ID & Address Proof of Proprietor or Organisation
- Bank Account details
- Name & Activities of the Firm or organisation
Return Filing
Annual Returns Every year(s) on day 30 of November.
