All You Need To Know About Business Tax Planning

Since the focus of every business owner is always on minimising the amount of taxes they have to pay for a specific period of time, the importance of business tax planning services can never be denied. Experienced professionals offering tax services know how to implement numerous strategies to minimise the tax amount. Tax planning can help your business in a wide variety of ways. Instead of choosing any random professional for business tax planning, enhance your knowledge about the service and you can hire the right tax consultant.

What Is Tax Planning?

Tax planning is used to refer to the activities which help in minimising tax liabilities in a tax-efficient manner and reduce the tax bill. Professionals offering the service also ensure that all the deductions, exclusions, allowances and exemptions are working together. Tax planning is considered to be a primary source of working capital.

Why Is It Vital?

There has recently been an increase in the demand for tax consultants offering the service. Look for someone experienced as they can help you achieve the financial goals of your business. They know that tax laws and allowances are continually changing and so regular reviews are necessary. There are numerous business tax planning strategies and finding the most effective solution for your business is quite challenging. Few benefits of tax planning services companies of every size can reap are,

•         Reduce the taxable income amount
•          Enjoy more control over the taxes you are paying
•          Reduce the tax rate
•          Maximise the available tax credits or tax reliefs

4 Ways How A Tax Consultant Offering Business Tax Planning Can Help You

•          Calculating Capital Gains Tax

Planning for Capital Gains Tax is not as easy as you think. You have to consider numerous things like what should be sold and to whom they should be sold. Professionals offering tax services will do all the calculations on your behalf and let you know which assets are included and which are exempt.

•          International Tax Calculation

International tax planning services are very important for companies engaged in international business dealings. You might also have to pay international taxes if you are planning to live outside your country or coming here to run a business. Few things included under international tax planning strategies are foreign tax credits, tax bills timing and avoiding double taxation.

•          Calculate Corporate Tax

Profitable companies have to pay a high corporate tax and so hiring the right professional to calculate it is a must. They know how to help businesses of every size to extract money from business transactions and maximise profit.

• Inheritance Tax Calculation

If you want to maximise the amount of your estate which will be passed on to your near ones after you die, hire a professional to calculate the inheritance tax. Few IHT opportunities you can utilise as far as the family home is concerned are downsizing, insurance and mortgage options and gifting property.

Since your knowledge about business tax planning has enhanced, it’s time you start looking for an experienced professional offering tax services.

Rules to think about While Filing income Tax Returns Kolkata

Most people get goose bumps while filing their IT returns but it has become easier than ever before because the system has been completely digitized. Income tax returns makes it a convenient process to e-file your returns.

There are some rules governing the filing process and understanding these rules will make your filings easier than ever. Filing your taxes is a mandatory process and is governed by law. So, you can't skip it and in this article you will be looking at some of the most crucial rules you need to follow.

File Your Returns If Income Exceeds Basic Limits

Many taxpayers have misconceptions regarding their tax slabs. Mostly are ignorant about their tax compliance figures. The limit for tax filing should be always kept in mind while filing your returns.

Keep Your Documents In Hand

Keep your pan card handy before filing your returns. Now,  government has mark it mandatory to link Aadhar card with your pan card. So, if you don't have one, get hold of your Aadhar card as soon as possible. You should also keep your Form 16 with you as it details your salary paid and TDS deducted on this can be paid on your behalf with the tax authorities.

Keep Your Tax Saving Investments and Expenses

Keeps your tax saving investments and expenses documents ready to maintain accuracy in your filings? It helps to file your returns with lower tax payouts and get higher returns on your taxes. Save all your documents like EPF, NPS, PPF and other tax saving investments.

Verify Your TDS details

Make sure that the filing returns that have been deducted on your behalf have been credited on your pan card. If you find any issues, you should notify the authorities immediately. You should check out your form 26AS online and make sure that that taxes have been paid properly.

Disclose All Your Assets Properly Including Foreign Properties

Filing your taxes can cause a lot of problems for taxpayers who have been abroad. It is essential to disclose all your assets truthfully before the authorities. It is a rule that you must include all your foreign bank details to the income tax authorities. Any missing foreign assets while land you in a very critical position.

Choose the Correct Form

You have to choose the correct form if you are earning incomes from salary/pensions. If your income is less than Rs 50 lakhs a year you need to file a different form.  So, it is significant to keep in mind the forms you need to correctly file your returns.

Filing your income tax returns Kolkata is not a very difficult task. Keeping these simple rules in mind will make your job of filing easier and will ease the butterflies in your stomach before the filing day.

Hire A Professional And File Your Income Tax Returns Without Any Error

If you don’t want to land in trouble with the tax department, hiring a professional to file your income tax returns is highly advisable. You might have to serve the notice period or get penalised just because of a minor mistake.

A majority of the chartered accountants in Kolkata have years of industry presence. They know the common mistakes people generally make while filing income tax returns. Their complete focus is on preventing you from landing in any sort of trouble with the income tax department. With the right professional by your side, you don’t have to serve a tax notice ever. Instead of waiting for the ITR filing deadline to arrive, hire professionals who will file the return with utmost care.

4 Common Mistakes Taxpayers Make When Filing Income Tax Returns In Kolkata

·         Choosing The Wrong Form

Unless you have prior experience in filing ITR, you might end up choosing the wrong form. The return will be considered to be defective and you have to file a revised ITR. This should be done within 15 days from the date you have received the intimation. If you exceed the time limit, the return will be considered invalid. A businessman will have to pay interest and face numerous penalties if they fail to file ITR. This is why choosing the right form is more important than you think.

·         Failing To File Income Tax Returns

Some people don’t file their tax returns as their LTCG or long-term capital gains are tax-exempt and their gross total income is less than the tax-exempt income level. There have been some amendments in section 139 (1) of the Act. Now you have to file ITR if your gross total income is more than the minimum exemption level. If you are not sure whether you have to file income tax returns or not, get in touch with an experienced accountant. They will help you calculate your LTCG and gross total income.

·         Not Declaring Rent

If you own a house other than the one in which you are currently staying, the expected rent should be included in your gross total income even if it is lying vacant. Accountants filing income tax returns ensure that both deemed rent and expected rent are declared in your income. The notional rental will get added to your income and you have to pay some taxes. Negligence to include the rents will lead to penalties.

·         Hiding Interest Incomes

If you are reporting the income you have received in the previous financial year, make sure you include your interest incomes as well. This should include the interest received from recurring deposits, fixed deposits and savings bank account. This is necessary because the interest received from recurring or fixed deposits are fully taxable. There is some tax relief for interest earned from savings bank account.

Since you are now aware of the common mistakes taxpayers make when filing income tax returns, make sure you avoid those by hiring an experienced accountant offering the service in Kolkata.

Why should you hire a startup lawyer for your business?

Are you thinking about starting a business? Well, try to avoid all the pitfalls that are often encountered by the new entrepreneurs. Many startups fail as they are not aware of the factors that cause the company to fail instead of getting success. For the new founders, it is quite common to ignore legal issues. And here is a brief discussion on why the new business owners should hire Law Firm for Startup Companies at the soonest and even before starting the company, if possible.

·         Legal personnel can increase your chance to get success – Lawyers are talented professionals. They understand different pattern of business along with its nitty-gritty quite easily. A startup lawyer can advise other startups regarding how to avoid being fallen into the traps that may cause them to fail. Moreover, hiring an attorney in the initial stage helps addressing legal perils around common sources like partnership conflicts. They can help you make a partnership agreement to protect both parties’ interests as well as the interest of the business itself. Such agreement comes even handier when you have the lowest stakes.

·         Fixing errors that can cost you more in the long run – Most startups think that legal problems can be sorted out later. Such an approach is never appreciated. In fact, such assumption often costs you more to undo legal mistakes in the future, in terms of both time and money.

·         Not every mistake can be corrected – Some legal issues can be resolved without paying any expensive penalty. If you have violated the employment laws, for example, by considering somebody as an independent contractor while, in real time, they are the employees, you may be required to pay both fines and penalties as per the laws of your country.

·         They can help increasing the value of your business – Apart from helping you to lower the legal risks; a good startup lawyer firm can help you enhance the value of your business. If you are deciding, for example, between a Limited and a Corporation last year, the attorney might have informed you about the special yet different tax benefits in terms of both options. A Law Firm for Startup Companies can add value to your organisation by introducing investors as well.

·         You must know what you don’t know – As an entrepreneur, you surely have a lot of job to be completed. You will find that you are not qualified and able to do each of them. Legal nuances are often understood by the legal advisors.  They can interpret the legalese before you and fix them efficiently. They can also assist by navigate them so you have the understanding of how to avoid any unknown trap.

It is a tendency of the new capitalists to wait up to the last moment to take care of the legal problems. Avoid being belonged to that group; hire a startup lawyer before you kick off. He or she is the right person to provide you with the basic legal assistances, lower legal perils and create new opportunities to become successful.

Summary – Hiring legal professionals is a good option for the startup companies as legal personnel can increase your chance to get success, they help you fixing errors that can cost you more in the long run. They can help increasing the value of your business as well.

Planning A Start-up? Time To Hire A Chartered Accountant In Kolkata

Not everyone planning a start-up is aware of the importance of hiring a professional chartered accountant. They play a very important role in the execution of business models and revenue models. The business atmosphere has become quite complicated nowadays and hiring a professional advisor has almost become a necessity. Not only do they try their level best to make your venture profitable but offer numerous other benefits as well.

Ensure These Things When Hiring an Expert for Income Tax Returns

Regardless of whom you ask, you will always find that people find the task of filing their income tax returns an arduous and tedious task. It is something that nobody likes to do, and an ever-increasing number of people are outsourcing the work to professionals who do it for a living. This is a good idea too, considering that they have been doing it for a long time and know exactly how to do it in the best possible way. Although, you must ensure that you do not forsake the whole matter once you have hired the professional. Discussed below are the things that you will need to ensure when you hire a professional for filing income tax returns.

File Your Income Tax Returns By Avoiding 3 Common Mistakes

Though filing income tax returns look quite simple, it is actually not so. There are a wide variety of taxpayers for whom the income tax department has issued different ITR forms. Even individuals have to choose from different ITR forms as they are specially made for different filings. The process of filing income tax returns is quite confusing and so taxpayers often end up missing the deadline.

Prepare Your Taxes From Professionals Offering Tax Services In Kolkata

If you are one of the business owners who believe that trying a DIY instead of approaching professionals to prepare your taxes will help you save money, it’s high time you debunk the myth. Though you can undertake a few accounting tasks yourself, you need to get in touch with a renowned income tax consultant and auditor in Kolkata when preparing your income tax return. Trying a DIY means you will end up spending more in the long-run as even a minor error while preparing the report can lead to fines and penalties.

Why Is Hiring A Chartered Accountant Important For A Small Business?

Ever wondered why a majority of start-ups fail? Well, most start-ups fail due to the management of funds. Wondering about the ways to have well-managed finances, handle all the government paperwork and be well-versed with the finance rules? Hiring a chartered accountant can be the ideal way to reduce your workload and increase peace of mind at every stage of business.  

Majority of start-ups and small businesses keep juggling between competing priorities and making important decisions for allocating their business resources. Seeking the valuable assistance of a professional chartered accountant is thus important for every small business to survive. Be it cash flow problems or regulatory burdens, a well-qualified chartered accountant in Kolkata can help you with all your problems and even take your business to the next level. Hiring an expert accountant can thus be very beneficial.

Know the Common Myths Related to Income Tax Returns in Kolkata

Regardless of how much someone tries to convey that they know everything there is to know about income tax, the fact would remain that not everybody knows everything. In addition, there have crept in certain myths and associated themselves with income tax returns in Kolkata. Discussed below are these myths and a quick look at the authenticity thereof.