Akash Janrao and Associates
Direct Tax Advisory:
Out of all other subjects, taxation is one of the most complicated ones. This is why there is a requirement for professional help as it will keep the person updated with all the frequent changes and amendments in the Income Tax laws. The expert will also provide the proper guidance regarding tax planning and documentation work. Even a minor mistake in tax submission can cost huge money to an assessee.
The Direct tax advisory services by AJA offer the best solutions that will help in the efficient management of tax affairs. The Income-tax consultants at AJA in Pune have the aptitude to provide expert advice in tax planning.
Frequent changes are happening in the Indian taxation system, so the decisions made for the tax planning should be according to changes. Even the experts conduct the in-depth analysis of the changes in the Income-tax laws, and the reports are properly communicated with the clients about the changes. Everything in the reports is explained in simple and layman language.
"At AJA, we are focused on exploring opportunities and leveraging them to enhance the advantage to the clients in the form of significant tax savings."
We at AJA provide the following Direct Tax Advisory Services :
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Corporate and Personal Tax Compliance
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Tax Planning for Corporate and Individuals, Residents & Non-Resident Indians
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Tax Planning for Overseas entities desirous of setting up a business in India
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Transfer Pricing Audits U/s. 92 E (in select cases)
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Tax Audit U/s. 44 AB of the Income Tax Act, 1961.
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Certification for Form 15CB required by Residents and Non Resident Indians for remitting funds outside India.
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Representation Services at various Tax Authorities
It is crucial for both corporate houses and individuals to follow all the Income Tax compliances completely. These compliances can be very technical, so it is conducive to get an expert who has proper knowledge and experience in this field. As one of the leading Tax Consultants in Pune, we at AJA help our clients to execute their tax compliances appropriately and under the timeframe.
Over time, it has been seen that majority of the Income Tax compliances are done through online modes, and for this, specialized knowledge and expert guidance are required. AJA provides one of the most reliable tax services to all its clients from diverse sectors.
The Indian Taxation system is broadly divided into two-part given below :
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Direct Taxes (Income Tax)
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Indirect Taxes (Goods and Services Tax)
Income Tax in India brief information:
Every individual income earned in the financial year is liable to pay taxes as per the rules set by the Indian government. The financial year starts on April 1 and ends on March 31 of the following year. The Indian taxation system is based on the concept of residence that divides the taxpayers into two broad categories, i.e., residents and non-residents. Even there is a category in individual taxpayer termed as “residents but not ordinary residents.”
Even the Indian company is considered to be a resident of India and is liable to pay tax. Even any other company whose affairs are fully managed and controlled by Indians is also a resident of this country. Apart from this, any other company would come under the non-resident category.
Companies / Corporates :
Resident Companies :
In general Indian resident companies are liable to tax at 25% plus surcharge & education cess as applicable from the Financial Year 2018-19.
It is also important to note that from Financial Year 2020-21, Dividends distributed by the company are taxable in the hands of the shareholder.
Non-resident Companies :
Non-resident companies are typically liable to tax at 40% plus surcharge & education cess as applicable. However, income from long-term capital gains is taxable at the rate of 20% plus surcharge & education cess as applicable.
Tax Audit under the Income Tax Act, 1961:
A Tax Audit is an audit, made compulsory by the Income Tax Act, if the annual gross turnover/receipts of the assessee exceed the specified limit. Tax audit is conducted in Sec 44AB of the Income Tax Act by a Chartered Accountant.
If the assesses who is qualified under the presumptive taxation scheme but opts out of it after a specified period, he would lose the ability to revert back to the presumptive taxation scheme for a continuous term of 5 assessment years after the decision to opt out is taken.
Due Dates of Filing Tax Audit Report:
30th September is the due date to filing tax audit report under Section 44AB of the Income Tax, 1961 in India for all the assesses.
Penalty for Not Completing Tax Audit:
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If a taxpayer who is required to obtain tax audit does not get the accounts audited, before the due dates, then penalty could be levied under Section 271B of the Income Tax Act.
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0.5% of the total turnover/gross receipts of the relevant financial year.
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Rs. 1,50,000. Whichever is lower.
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However, according to the section 273B, no penalty would be imposed on the person if valid reason for such failure is proved. Thus, tax audit is a very important requirement under the Indian Income Tax Laws who are required to undergo such an audit. Failure to comply with the income tax rules would attract penalty and those wishing to avoid any penalty should ensure full compliance with all the rules of the income tax audit.
Who can Audit Your Account Books?
In India, Chartered Accountantsholding Certificate of Practice issued by the Insititute of Chartered Accountants of India will audit the accounts and prepare the report as prescribed in Income Tax Act.
Forms of Tax Audit under the Income Tax Act 1961 :
Form 3CA, 3CD
Audit Report Form in case where accounts of an assesses has been audited under any other law.
Form 3CB, 3CD
Audit Form in case accounts of an assesses are not being subject to audit under any other act except Income tax Act.