Direct Tax Compliances

Direct taxes, often known as income taxes, are levied against people or organizations directly based on their revenues and cannot be passed along to other people.

The provisions of the Indian Income-tax Act, 1961 (the “Act”) govern income tax in India. The Act operates on the self-assessment principle, which requires every person receiving income or any amount to compute their total income under five categories of income—salaries, income from real estate, income from businesses or professions, capital gains, and income from other sources—and to pay their taxes prior to filing an income tax return. Additionally, the payer of the income must adhere to specific compliances, such as those that are related to TDS/WHT. The Act contains an internal system to guarantee correct and prompt compliance. The Act allows for the imposition of interest, a fine, and legal action based on the scope and kind of failures. Every person must generally comply with the following obligations within the allotted time:

  • The submission of a self-assessed income tax return using ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7 forms.
  • Advance tax payment, TDS/WHT reporting on Forms 24Q and 26Q, and payment of advance tax are all required.
  • Submission of the SFT form, which lists all of the financial transactions made during the year.
  • Submitting the tax audit report (Form 3CD) and the transfer price audit report (Form 3CEB) prior to submitting the income tax return

How SalahKaro Help on Direct Tax Compliance!

SalahKaro has a capable team that keeps up with the constantly evolving tax laws, rules, and regulations. Additionally, our staff offers client-centered guidance and applies its extensive knowledge of tax laws for the client’s convenience. We strive to provide our clients with prompt, efficient services that are effective in their taxes procedures, lowering the interest, penalty, and prosecution to the lowest possible levels. It is essential that all compliances under the Act be made on time since over time, the government has increased the tax base by requiring severe and proper compliances. We provide the following services to our clients:

  • Calculating quarterly advance tax and paying it before the deadline in order to reduce incidental interest.
  • To calculate the correct amount of TDS/WHT and pay it before the due date, relevant parts must be used in the monthly TDS/WHT computation.
  • Reviewing and filing the quarterly TDS/WHT reports within the allotted time.
  • Preparing the computation of income under various income heads and calculating the amount of tax that will be owed by the individual.
  • Identification of numerous tax deductions that can be used to reduce taxation.
  • Evaluation of the income calculation to determine if certain deductions are allowed or not.
  • Coordinating with customers to acquire different information that must be reported on the ITR form and verifying that each item has been disclosed correctly.
  • The timely submission of the tax audit report (Form 3CD) and the transfer pricing audit report (Form 3CEB).
  • Depending on the type of person or class of people, any other Act compliances
  • Application for a certificate of NIL deduction or reduced rate tax on behalf of the individuals

FREQUENTLY ASKED QUESTIONS

Following are the various income tax forms and their applicability:

  • ITR-1: Also known as SAHAJ, it is applicable to individuals having salary income, pension income, income from house property or income from other sources.
  • ITR-2: It is applicable to individuals and HUF not having income chargeable under the head PGBP
  • ITR-3: It is applicable to individuals and HUF whose any income is chargeable under the head PGBP
  • ITR-4: Also known as SUGAM, it is applicable to individuals, HUF or partnership firms opting for presumptive taxation scheme under section 44AD/44ADA/44AE
  • ITR-5: It is applicable to AOP, BOI, LLP, co-operative society, local authority or artificial juridical person
  • ITR-6: It is applicable to companies (other than one claiming exemption under section 11)
  • ITR-7: It is applicable to persons including companies filing returns as per section 139(4A), 139(4B), 139(4C) or 139(4D) (i.e., political parties, colleges, trusts, institutions).

If you fail to file your ITR within the above deadline, then you can file a belated return as per Section 139(4). The due date for filing a belated return is 31st December of the assessment year. 

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