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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.

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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.

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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 :

  • Corporate and Personal Tax Compliance

  • Tax Planning for Corporate and Individuals, Residents & Non-Resident Indians

  • Tax Planning for Overseas entities desirous of setting up a business in India

  • Transfer Pricing Audits U/s. 92 E (in select cases)

  • Tax Audit U/s. 44 AB of the Income Tax Act, 1961.

  • Certification for Form 15CB required by Residents and Non Resident Indians for remitting funds outside India.

  • Representation Services at various Tax Authorities

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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.

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The Indian Taxation system is broadly divided into two-part given below :

  • Direct Taxes (Income Tax)

  • 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.”

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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:

  • 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.

  • 0.5% of the total turnover/gross receipts of the relevant financial year.

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OR

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  • Rs. 1,50,000. Whichever is lower.

  • 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.

  • How can Accounting Service will help my business?
    A book keeping and accounting service can assist you to keep track of all expenses so that the tax preparer can send over the necessary paperwork. You can get a clear picture of your company's financial health if you hire an efficient accounting service.
  • Is there any option to use it for more than one CA firm?
    As a chartered accountant in practice, you are allowed to join more than one company as a partner. In contrast, a practicing chartered accountant cannot become a partner in other firms or professions other than practice.
  • Where would you find the best Chartered accountants in Pune?
    Their 50-Point Inspection encompasses customer evaluations, history, complaints, ratings, contentment, trust, pricing and overall quality. In this way, you can find the best one!
  • Which 3 accounting items are the most important for a business?
    Many experts believe the top line, or cash, is the most important component on a company's balance sheet. Other important factors to examine include accounts receivable and short-term investments. A balance sheet includes assets, liabilities, and equity.
  • How will outsourcing of Accounting and Finance benefit the business?
    Outsourcing finances and accounting reduce the time and effort required to manage and supervise your in-house accounting personnel. It will allow you to devote more time and resources to the most important aspects of your organization.
  • What is financial accounting and what are its advantages?
    A company's financial transactions are meticulously tracked in financial accounting. This year's revenue and expenditure are shown in a Financial Statement of Accounts, a technical document that records and summarizes all of the business's activities.
  • What are the advantages of accounting services?
    Accounting, when done effectively, provides abundant information on the health of your company's finances. It's easier to make smart business choices if you have a clear view of your money.
  • What is applicability of statutory audit?
    An audit is required if an LLP's yearly income exceeds Rs. 40 lakh or its capital contribution exceeds Rs. 25 lakh. In addition, a tax audit is required of proprietorships and partnerships that surpass a certain sales threshold.
  • What are the important elements to check in the statutory audit of banks?
    The following are critical items to verify during a bank's statutory audit: Procedure for Cash Verification. Tax-Related Purchases. Loan Accounts Verification. Loan Accounts Verification Preliminary Examination. Disbursement. Inspection Following Disbursement.
  • What is the applicability of Section 138 (Internal Audit)?
    Suppose the Board decides to appoint an internal auditor, in that case, it must be a chartered accountant or a cost accountant or such other professional as the Board deems appropriate to undertake an internal audit of the company's duties and operations.
  • Which is the criteria for appointment of an internal auditor?
    The Board of Directors may appoint an internal auditor who is a chartered accountant, cost accountant, or other certified professional. The internal auditor may or may not be an employee. No matter whether you're a Chartered Accountant or not.
  • What is Internal Auditing?
    What is the purpose of an internal audit? –A company's internal controls, such as its corporate governance and accounting systems, are examined during an internal audit. In addition, financial reporting and data gathering is supported by these audits, which assure compliance with applicable legislation.
  • Statutory audit of banks is mandatory?
    Banks are required to undergo a statutory audit. The Reserve Bank of India (RBI) and the Institute of Chartered Accountants of India (ICAI) jointly designate Statutory Auditors. All banks undergo a thorough audit once a year after the conclusion of the preceding fiscal year.
  • What is the Statutory audit?
    Legally mandated audits of financial accounts and records are known as "statutory audits."... Enterprises that must be audited include public companies, banks, brokerage and investment organizations, and insurance firms.
  • What do you mean by 'income earned in India'?
    In India, all wages are considered to have been earned there. Therefore, even if you charge a fee for a service delivered in India, you are still considered to have earned revenue in India.
  • Is Income tax Act applicable only to residents?
    New provision 6(1A) of the Income-tax Act, 1961. Such a person is considered an Indian resident only if his domicile, residency, or other comparable factors exempt him from taxation in any other nation or jurisdiction.
  • What is Income Tax?
    A direct tax levied by the state on its citizens' income. Income does not merely mean pay. It also covers rental income, corporate earnings, professional gains (such bonuses), capital gains, and "other kinds of income."
  • What does the Income Tax Department consider as income?
    Income tax returns must be filed by everyone who earns any money in a given year. From a wage, firm profits or rental or dividend income to capital gains or interest or any other form of income, all comes under the category person’s income.
  • Who is supposed to pay Income Tax?
    Any Indian citizen under the age of 60 who earns more than Rs 2.5 lakh gets taxed. If a person is above 60 and earns more than Rs. 3 lakhs, they must pay taxes to the Indian government.
  • What is the period for which a person's income is taken into account for purpose of Income tax ?
    A person's annual income is subject to income tax. The year begins on April 1 and ends on March 31 of the following year, which is the tax year.
  • How does the Government collect Income-tax?
    There are three primary methods in which the government collects Income Taxes: Source-Separated Taxes (TDS) Paying Taxes Only Once (TCS) Bank accounts designed for tax-payer contributions.
  • What are revenue and capital receipts?
    Non-operating capital receipts include profits from the sale of long-term assets, capital invested by the owner, and sums received as a loan or from debenture holders. Revenue receipts consist of sales, commissions, and investment interest, all contribute to the company's annual revenue.
  • How would a particular transaction of goods and services be taxed simultaneously under Central GST (CGST) and State GST (SGST)?
    Taxes on all transactions of supply of goods and services will be imposed concurrently by the Central and State governments, save for those transactions that fall below the set threshold limitations.
  • What is GST? How does it work?
    Federal sales tax, the goods and services tax (GST), applies to the price of specified products or services. Upon purchasing a product, a buyer must pay the complete sales price, including GST, which the firm adds.
  • What are the benefits of GST?
    The GST eliminates tax escalation. Composition strategy for a small company A quick and simple internet approach. Less regulations Improvements in logistics efficiency The GST regulates the unorganized sector.
  • Will cross utilization of credits between goods and services be allowed under GST regime?
    It would be able to pay for both products and services using CGST credits if they were earned. Furthermore, in the case of SGST, the possibility of credit cross-utilization would be available.
  • What are the major chronological events that have led to the introduction of GST?
    This timeline summarizes key events in India's GST system. The L K Jha committee introduced VAT in 1974. The MVAT was introduced in 1986. (MODVAT) The Chelliah Committee advocated VAT in 1991. (GST)
  • What about the Registration Process?
    Form 32 - Details about the director, manager, and secretary. An Incorporation Certificate will be issued after the Form is completed and the Corporate Identity is created. eForm 19 requires the prospectus (Schedule II). OBTAIN A CORPORATION CERTIFICATE
  • Which taxes at the Centre and State level are being subsumed into GST?
    The following taxes have been combined at the state level: state value-added tax, sales tax, entertainment tax, central sales tax, Octroi and Entry tax, purchase tax, and excise tax are all examples of taxes
  • Who and when an entity has to register?
    Companies Act, 2013 defines 5 kinds of entities that may be registered when beginning a new business: Sole Proprietorship. LLP. One Man Band. LLLP. Private Limited. Any association or partnership with over 100 members must be registered as a corporation.
  • What are the benefits to hiring bookkeeping services?
    Mission-critical information is provided. As a result, you might save money on your taxes. You may be able to save money on accounting costs. You will save time. You may even see an increase in revenue.
  • How can having an outsourced accounting department help me manage my business?
    Outsourcing accounting is typically cheaper than hiring a full-time person. Help in key activities of the company. The finest software is used. Get accurate information Stricter controls and less fraud
  • Which are the best companies for outsourcing bookkeeping and accounting services?
    Akash Janrao & Associates is one if the best companies for outsourcing bookkeeping and accounting services.
  • What are outsourced online bookkeeping services?
    Typically, a virtual accounting firm is responsible for capturing and summarising your financial information. If your CPA has access to this data, they can help you with your taxes and financial planning going forward.
  • Why should large financial companies prefer to outsource bookkeeping or accounting services?
    Streamlines the Hiring Process and Save Money Save time and effort. Professional Bookkeepers and CPAs Intuitive Scaling of Accounting Automated systems
  • Why should outsource bookkeeping, payroll or accounting services?
    Outsourcing is helpful for budgeting. You may choose the payment plans that work best for you and your company without hiring full-time staff. This allows you to compare your alternatives and pick the best value for money.
  • Why need outsource bookkeeping services?
    Payments may be managed more efficiently and more quickly using the newest cloud-based solutions available via outsourcing. For less than the cost of your firm's outdated equipment, an experienced finance and accounting outsourcing company will be able to deliver modern technology.
  • Do Startups Have to Pay GST?
    Numerous startups are in the service business, which means they are subject to service tax. They may offset the VAT paid on purchases (say, office supplies) against the service tax on their sales under the GST scheme, something they cannot do under the existing structure. As a result, it will significantly boost the startup business, which is mainly focused on offering services. It will result in cost savings, hence improving working capital for cash-strapped firms.
  • Is There a Tax Credit for Starting Your Own Business?
    This plan was open to startups that were established between April 1, 2016, and March 31, 2021. Starting in the first year, such companies would be entitled to a tax credit of 100 percent on profits for three years in a block of seven years, provided that their annual turnover does not exceed Rs. 25 crores in any financial year.
  • Are LLC Startup Costs Tax Deductible?
    The expenditures associated with forming an LLC are tax-deductible, but you must be aware of critical limitations, exclusions, and guidelines in order to deduct these costs legitimately. The Internal Revenue Service (IRS) imposes restrictions on the number of deductions available for LLC starting fees. If your beginning expenditures are less than 50,000, you may deduct up to 5,000 for initial organizational costs.
  • Do startups pay taxes?
    The government has waived the tax that would have been paid on investments in qualifying startups that were more than their fair market value. ... Additionally, investments made by incubators in excess of fair market value are excluded from taxation. Income Tax is levied on the income as per the below-mentioned schedule of Taxes. Type of Business Entity Income and its Tax applicable Proprietorship/ Individual As per Income Tax Slab Rates Partnership/ LLP Firm - 30% of Income Indian Company - 25% of Income
  • How to Get Tax Exemption in India for Startups?
    Exemptions from SECTION – IAC- Eligible startups may claim up to 100% of profits and gains for three consecutive years during a 10-year period, provided that the company's annual revenue does not exceed 100 crores in any of the prior financial years. This tax is referred to as the Angel tax. However, the government has exempted all government-recognized companies from the Angel tax with the latest announcement. Entrepreneurs may now save money on taxes and use it for funding by using this area.
  • How do startups get tax benefits?
    The qualifying period has been extended until the end of March 2022, thanks to Budget 2021. Startups in this category would be entitled to a tax credit of 100 percent on profits for three years in a block of seven years, provided that their annual revenue does not exceed Rs. 25 crores in any one financial year during that time. Only if a startup meets the requirements of an "Eligible Startup" can it use all of the tax incentives available to it.
  • How can NRI save tax in India?
    Non-resident Indians do not have access to several key deductions that are available to residents. A PAN Card is needed to do this. Retain your non-resident Indian status. Use what you have. Interest on a Home Loan
  • Who is NRI as per Income Tax Act?
    Currently, Indian citizens who work or do business outside of India are considered non-residents under the country's tax laws. However, if an NRI spends more than 182 days in India in a financial year, he is considered a "resident" of India.
  • Do NRIs have to pay tax?
    Anyone earning more than Rs 2,50,000 per year, NRI or not, must file a tax return. NRIs are solely taxed on income earned or received in India.
  • Is NRI income taxable in India?
    If they are residents in India, all of their worldwide income is subject to taxation. In the case of NRIs, any income generated or accumulated in India is subject to Indian taxation.
  • Is Income Tax Return need to file compulsory Online for NRI for AY 2021-22?
    If your taxable income exceeds the basic exemption level, you must file an ITR (i.e. Rs 2.50 Lacs in the case of individuals). ITR filing isn't required if your total taxable income falls under the exemption level (section 139 of the Income Tax Act).
  • How much do NRI save?
    Your monthly savings of 75% (from 4.5 lakh) amount to 3.375 lakh rupees, which may be invested in one of the following ways: Equity Mutual Funds INR 1,68,750 lakh/month, or 50 percent of the entire investment.
  • How can you tell if an individual is NRI?
    A resident who spends more than 182 days outside India becomes an NRI. A "resident" is someone who has spent more than 60 days in India in the last year and 365 days in the previous four years.
  • Can NRI claim TDS refund?
    NRIs who file ITRs after the end of India's financial year are entitled to TDS refunds. To get a refund on the bank's TDS, an NRI must assess their own income and tax responsibilities.
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