Income Tax Return Filing
Filing Income tax returns is no cakewalk. I mean, there is a reason why tax attorneys are the richest kinds of lawyers, right? Claiming extra tax, bifurcation of income as per the sources, categorising assets as long term and short term, keeping up with filings’ deadlines, ensuring the proper disclosure and fair reporting of income, annexing proofs and whatnot. It can be a lot of hassle and a single, unintentional calculation mistake might get rewarded with heavy penalties and in some cases, even prosecution.
Thus, it is better to seek assistance from experienced professionals from the very outset of the process. Below, I have answered some common queries in a precise manner to give you a sneak-peak on how we serve our clients and what we bring on the table for our potential clients.
Income Subject to Income tax
- Income from miscellaneous sources: Interest from bank accounts, fixed deposits (FD), lottery, dividend, etc.
- Income from real estate: Rental income
- Capital Gains: Increase in the value of the real estate, land, stocks, mutual funds, etc.
- Income from business and profession: Income you make as self-employed, e.g. earning as an independently practising lawyer, Chartered Accountant, Freelancer, contractor, etc
Income Tax Rates in India
Corporations and firms are taxed at a standard rate of 30% on the profits but individuals, Joint Hindu Family business, Association of Persons (AOP) and Body of Individuals (BOI) are taxed as per the tax slab their income falls in.
The Income Tax slab for people entities below 60 years of age in India is as follow:
- For income up to INR.2,50,000, there is no tax.
- From INR 2.5L to INR 5L, IT it’s 5% on the taxable income.
- From INR 5L to 10L, IT is of a fixed sum of INR 12,500 plus 20% on the income above 5L
- For income above 10L, IT is again a constant sum of INR 1,12,500 plus 30% on income above INR 10L.
There are two more tax slabs for people above 60 years and 80 years which have lower tax rates. Further, there is an element of long and short term assets that need to be kept in mind when it comes to capital gain.
Benefits of Filing Income Tax Returns
Other than the feeling of being a responsible citizen, few other benefits of filing timely income tax returns are smooth loan approval, claiming tax refunds, it also serves as income & address proof; help for faster Visa processing, allows for carrying forward the losses, avoid any sort of penalty/ prosecution.
Penalties for Late Filing
The maximum penalty for the below INR 5L income group is INR 5k and for the income group above INR 5L, it’s at max INR 10k.
Other than this penalty, there are some other consequences for delayed IT returns filing like unable to carry forward losses, the liability of paying interest on the delay returns’ filing @1% and late crediting of refunds.
We are a confluence of CAs and CSes having 10+ years of experience in the field of finance and taxation. We have dealt with matters from handling return filing for SMEs to complex tax issues for giant corporations and for High Net Worth Individuals (HNWI) including Bollywood stars, top-notch corporate executives, artists, etc. We provide comprehensive services from return filing, tax planning to tax optimisation and even handling cases at the department level.
To know more about how we will implement our optimum and innovative taxation solutions in your organization give us a call on 7727887799 (also available on WhatsApp) or drop us an email containing your business requirements at firstname.lastname@example.org and our team will reach out to you within 2 hours.
We can do your income tax filing, along with providing a range of other services to take full accountability as your virtual CFO.
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