India Entry & Business Startup Consultings

Direct Tax Compliances

Direct Tax Compliances

Direct tax or income-tax are those taxes that are levied directly on the individual or organizations on their incomes and the burden of which cannot be shifted to others. In India, income-tax is governed by the provisions of the Indian Income-tax Act, 1961 (‘Act’). The Act works on the principle of self-assessment whereby every person in receipt of income or any amount is required to assess and compute its total income under five categories of income via salaries, income from house property, income from business or profession, capital gain, and income from other sources and discharge its tax liability before the filing of return of income. In addition to this, there are certain compliances that are required to be made by the payer of the income like TDS/WHT related compliances. There is an internal mechanism under the Act to ensure proper and timely compliances. The Act provides for levy of interest, penalty, and prosecution depending upon the quantum and nature of failures. Generally, the following compliances are required to be made by every person within the prescribed time:

  • Filing of return of income self-assessing the income and tax in the relevant ITR form via ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7.
  • Payment of advance tax and TDS/WHT, and also filing of TDS/WHT returns in Form 24Q/26Q, etc.
  • Filing of form SFT detailing the financial transactions undertaken during the year.
  • Filing of the Tax audit report in Form 3CD and transfer pricing audit report in Form 3CEB before filing the return of income.

How ASC Help on Direct Tax Compliance!

ASC has a proficient team keeping up with ever-changing taxation policies, rules, and regulations. Our team also provides solution-oriented advice to a client and apply their timeless experience of the taxation provisions for the ease of client. We aim at providing timely fast-paced services to our clients with effectiveness in their taxation practices to reduce down the interest, penalty, and prosecution to the most insignificant levels.

Over the years the Government has been expanding the tax base by ensuring strict and proper compliances and therefore it is imperative all the compliances under the Act should be timely made.  We assist our clients in the following ways:

  • Computation of quarterly advance tax and payment of the same before the due date to minimize the incident of interest.
  • Computation of monthly TDS/WHT under relevant sections in order to compute the correct amount of TDS/WHT and payment of the same before the due date.
  • Review of the quarterly TDS/WHT returns and filing of the same within the prescribed time.
  • Preparation of computation of income under various heads of income and compute the amount of tax to be payable by the person.
  • Identification of various deductions available to minimize the incidence of tax. 
  • Review of computation of income to check the admissibility or non-admissibility of various deductions.
  • Coordination with the clients for obtaining various details required to be disclosed in the ITR form and ensuring that every such detail has been properly disclosed.
  • Filing of the tax audit report in Form 3CD and transfer pricing audit report in Form 3CEB within the prescribed time.
  • Any other compliances under the Act depending upon the nature of person or class of persons
  • Application for obtaining lower rate tax or NIL deduction certificate on behalf of the persons
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