Income Tax

Income tax is a tax charged on the annual income of an individual or business earned in a financial year. The Income Tax system in India is governed by The Income Tax Act, 1961, which lays out the rules and regulations for income tax calculation, assessment, and collection. All taxpayers are mandated to submit an Income Tax Return (ITR) every year by respective due dates as per the law to report their income and claim a tax refund if applicable. An income tax return can be filed online or offline on the Income Tax Department’s official website or through verified third-party websites.

Who Needs to Pay Income Tax. Under existing rules of the IT Act, any individual/business with income irrespective of the amount earned is liable to file income tax returns. But, currently tax on income is payable only if the net taxable income for a fiscal exceeds Rs. 2.5 lakh.

Why File Income Tax ?

Who must file IT returns mandatorily?

  • If your electricity bill exceeds ₹ 1 Lakh for a single bill or in totality for the financial year.

  • If you have deposited ₹ 1 crore in your current accounts maintained with a bank or cooperative bank.

  • If you are an ordinarily resident individual with income from foreign countries AND/OR assets in foreign countries AND/OR have signing authority for any account outside the country.

  • If you have spent ₹ 2 Lakh on yourself/others for travel to a foreign country.

  • If your GTI exceeds the basic exemption limit before claiming a deduction on capital gains incurred under any of the following sections – 54, 54B, 54D, 54EC, 54F, 54G, 54GA, or 54GB

Representation and Appeal:

Tax Law matters are handled better manner if they are handled by tax experts. Tax Law Experts are better equipped to understand the requirements from the tax authorities and give apt replies to the notices and bring the matters to a closure in the most appropriate manner and in the shortest possible time.

Proceeding under the IT Law are legal proceedings, if the assessee is not in agreement with the order of the Income Tax Officer, there is a due procedure laid down in the Law for redressal of such matter by way of appeal and review. Assesee not agreeing with the order of the Income Tax Officer can file for an appeal to the Commissioner ( Appeals), thereafter with Income Tax Tribunal, High Court and then Supreme Court.

Deepti Bhagtani & Associates provides expert services in representing the clients before the tax authorities for income tax assessments and other income tax matters. Our Firm is being recognised as one of the best CA firms in Vadodara providing the services of filing appeals and providing representations.

Income Tax Return Filing

Reasons to file an IT return.

  • It makes loan processing easier.

  • It helps you claim any carried forward losses.

  • It allows you to claim TDS refunds.

  • It contributes to nation-building.

  • It will help you with visa or credit card applications.

IT Audit:

Income Tax Act, 1961 requires, Persons (individuals, firms or companies) whose turnover during the financial year exceeds limits specified below to get their books of accounts audited by a independent Practicing Chartered Accountant:

  • For persons carrying on business Rs. 1 Crore or 10 Crore ( For businesses declaring income under section 44AD the limit is Rs 3 Cr) 
  • For persons carrying on profession Rs. 75 Lakhs ( For Professional declaring income under section 44ADA the limit is Rs 75 Lakhs)

Also, under section 92E of the Income Tax Act, 1961 requires every person entering into international transaction with associated enterprise or specified domestic transaction to get an audit of such transaction done by a CA and submit the report in prescribed format.

Deepti Bhagtani & Associates has over a period established itself as one of the best audit firms in Vadodara due to its expertise, timeliness and cost effectiveness.

Income Tax Return – What is it?

An Income tax return (ITR) is a form used to file information about your income and tax to the Income Tax Department. The tax liability of a taxpayer is calculated based on his or her income. In case the return shows that excess tax has been paid during a year, then the individual will be eligible to receive a IT refund from the Income Tax Department.

As per the ITR laws, the return must be filed every year by an individual or business that earns any income during a financial year. The income could be in the form of a salary, business profits, income from house property or earned through dividends, capital gains, interests or other sources.

Tax returns have to be filed by an individual or a business before a specified date. If a taxpayer fails to abide by the deadline, he or she has to pay a penalty. 

Income Tax Advisory

ITR law is a ever changing legislation in India. Our focus is to ensure the client is updated on the changes in the income tax law, and necessary arrangements are made to comply with the requirements of law and to identify opportunities for our clients that can help them to manage their affairs in the most tax efficient manner.

Deepti Bhagtani & Associates provide expert services in:

  • Tax advisory and Tax Planning Services, including Business Taxation, international Taxation, Transfer Pricing, Capital Gains.
  • Preparation and filing of ITR.

Reasons to file an income tax return

  • It makes loan processing easier.
  • It helps you claim any carried forward losses.

  • It allows you to claim TDS refunds.

  • It contributes to nation-building.

  • It will help you with visa or credit card applications.

Our Key Services

With the introduction of faceless assessment scheme, there has been a paradigm shift in the way in which the tax assessments were done in India. While the scheme aims to eliminate the interface between the taxpayer and the Income tax authorities, it also brings new challenges like stringent compliance dates, no personal hearing, limited adjournments etc.

Our professionals with their wide-ranging experience and in-depth knowledge help in navigating these challenges. In this respect, below are the key services offered by us to our clients:-

  • Assistance in filing corporate tax returns and analysing the impact of
    Income-tax Computation and Disclosure Standards.
  • Assistance in advance tax computations for various quarters.
  • Assistance in filing withholding tax returns for both Indian and foreign
    entities.
  • Assistance in preparation and filing of robust submissions on various
    matters including assessment or reassessment proceedings, penalty
    proceedings, rectification proceedings, stay of demand etc.
  • Assistance in representation for pending tax refunds and follow-up
    with the Indian tax authorities.
  • Assistance in other compliances such as tax registration, obtaining
    lower withholding tax certificate, etc

General Questions

The deadline for filing Income Tax Returns (ITRs) for the assessment year 2023-24 ends today i.e. July 31st. The Income Tax Department has urged taxpayers across the country to complete their ITR filing before July.

It is mandatory to file an income tax return if your annual income is higher than Rs. 2.5 lakh per annum. For senior citizens who are more than 60 years old and less than 80 years old, the limit is Rs. 3 lakhs.

As per income tax laws, any assessee whose gross total income (GTI) is above the lowest income tax slab allowable for his/her age has to file ITR mandatorily. The basic exemption limit is ₹ 2.5 Lakh, ₹ 3 Lakh, and ₹ 5 Lakh, for assesses below 60 years, between 60 and 80 years, and those above 80 years, respectively.

There are certain instances where individuals have to file an income tax return even if their GTI is below the basic exemption limit. If you also fall under any of the categories mentioned below, ITR filing is mandatory for you.

Tax Residency Certificate

Tax Residency Certificate is a Certificate issued by an Income Tax Authority of a Country certifying that the person / entity is Tax Resident ( Resident for the purpose of Taxation) of that country. Taxation of cross country transactions is determined as per the provisions of Income Tax Law of respective country and the provisions of Double Taxation Avoidance Agreement(DTAA) entered into between two countries.
As the provisions of DTAA are applicable only to residents of that specific country, Income Tax Authorities of the country where the revenue is generated insist on Tax Residency Certificate from the receiver of revenue, to give benefits available under DTAA between two countries.

In India an application is made to the Income Tax Officer ( International Taxation) to obtain the Certificate, which is generally issued within a week time. There are no filing fees or other costs involved.

Deepti Bhagtani & Associates provides expert services in obtaining a Tax Residency Certificate from the Income Tax Department.

  • Certificate for Repartiation of Funds :While effecting transfer of funds outside India, the government is interested in knowing/ ensuring that the applicable income tax on the income component of such remittance is deposited prior to making such remittances. Towards this, there is a requirement on a person making the remittance to obtain a certificate from a CA stating that applicable taxes are remitted and produce such certificate before the Bank. The CA Certificate is issued in form 15CB and the remitter is required to submit details of such certificate in form 15 CA and produce the copies of form 15CB and form 15CA to the bank effecting the remittance. This requirement is applicable even if remittance is to a person's own account held abroad.

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