Tax planning is an important but often ignored concept in India. It not only means availing deductions but also includes planning finances and investments in such a way that the tax burden is not high in the first place.
However, just knowing which tax to pay is not enough. Filing tax returns could be a very complex task for new taxpayers. Individuals might feel the need to take an expert’s help while submitting their tax returns to save taxes appropriately. The government also introduces new exemptions or changes in the tax laws, which makes it even more difficult for individual taxpayers to navigate the tax filing process.
Why do you need a tax consultant?
Tax Saving: Rigorous tax planning can help you achieve huge tax benefits. This helps in saving maximum possible income. The resulting savings can then be used for a variety of investment opportunities that not only generate good returns but also help you achieve your financial goals. A tax consultant knows the ins and outs of tax saving and can help you save a considerable amount.
Save on time: Filing your tax returns can be extremely time-consuming, especially for beginners. Respecting time is very important here since there are specific deadlines that taxpayers would have to follow. To save your time, a tax consultant comes in handy and will make sure that all returns are submitted in a timely manner.
Tax Compliances: There are many ways to reduce your tax liability, but it’s essential to know the laws well and only claim the right deductions. A tax consultant will have the necessary knowledge and will stay up to date on the latest tax reforms.
Such effective tax planning in India requires experienced tax advisors who can provide you with sophisticated tax planning strategies.
Who needs a tax consultant?
Let’s assume that you have only salaried income, and form 16 is readily available. Then tax planning would be very straightforward for you. But if you have a higher income, higher deductions or income from various sources, it is important to ask for help from a consultant who can give you expert advice and make sure that your tax amount is reduced but all compliances are in order.
Whether you take the assistance of a tax consultant or not, it is crucial for you to stay updated on the latest tax reforms and to keep track of all your income.