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Chetan Oswal & Associates

We, at COA provide the following Direct Tax Advisory Services (Income Tax):

Corporate and Personal Tax Compliance.

Tax Planning for Corporate and Individuals, Residents & Non-Resident Indians.

Tax Planning for Overseas entities desirous of setting up a business in India.

Transfer Pricing Audits (in select cases).

Tax Audit U/s. 44 AB of the Income Tax Act, 1961.

Representation Services at various Tax Authorities.

Majority of the Income Tax & GST Compliances now-a-days are required to be completed online and need specialized knowledge and expertise. We use our years of experience coupled with our Time-bound and Reliable services, to enhance the advantage to the clients in the form of significant tax savings.

Today, Corporate and Individuals both are required to comply rigorously with numerous essential Income Tax Compliances. These time bound compliances require expert knowledge & experience, and are quite technical in nature.Taxation is an extremely complex subject and needs professional skill of the highest order and the consultant has to be constantly updated of frequent changes and modifications made in the Income tax laws and rules from time to time to be able to guide aptly in tax planning, documentation and represent the cases skilfully. Even a minor lapse can cost huge money to an assessee. We can assist you in executing your tax compliances in a time bound manner. Moreover, majority of the Income Tax & GST Compliances now-a-days are required to be completed on-line and need specialized knowledge and expertise. We at COA , specialize in providing Time-bound and reliable Tax services to its numerous clients of diverse sectors.

Direct Tax Advisory :

Taxation is an extremely complex subject and needs professional skill of the highest order and the consultant has to be constantly updated of frequent changes and modifications made in the Income tax laws and rules from time to time to be able to guide aptly in tax planning, documentation and represent the cases skilfully. Even a minor lapse can cost huge money to an assessee.

COAs direct tax advisory services in Kolhapur offer pragmatic solutions to manage the affairs in the most tax efficient manner. We at COA, as Income Tax Consultants in Kolhapur , have an aptitude for providing expert advice in tax planning.

As Indian taxation is prone to many changes, so decision making should be perfectly updated with new amendments. After conducting in-depth analysis of the changes we send reports which communicate the changes lucidly and in simple layman language for each comprehension.

Brief Information about Income Tax in India :

Income earned in a financial year is liable to tax as per the rates prescribed for that year. A financial year runs from 1 April to 31 March of the following year. India follows a residence based taxation system. Broadly, taxpayers may be classified as residents or non-residents. Individual taxpayers may also be classified as ‘residents but not ordinary residents’.

An Indian company is always an Indian resident. Additionally, any other company whose affairs are wholly controlled and managed from India is also a resident. Any other company would be a non-resident.

Companies / Corporates :

Resident Companies :

In general Indian resident companies are liable to tax at 25% plus surcharge & education cess as applicable from the Financial Year 2018-19.

It is also important to note that from Financial Year 2020-21, Dividends distributed by the company are taxable in the hands of the shareholder.

Tax Rates for Corporates:

PARTICULARSFOR ASSESSMENT YEAR 2021-22
Total Turnover Or gross receipt during the previous year 2017-18 does not exceed RS 400 crore25%
Companies opting for Section 115BA, provides that the income from business of a newly set up domestic company on or after 1st March 2016, engaged in business of manufacture or production of any article or thing and research in relation thereto, or distribution of such article or thing manufactured or produced by it, subject to conditions specified therein. 25%
Companies opting for Section 115BAA, when total income of the company is computed without claiming specified deductions, incentives, exemptions and additional depreciation.22%
Companies opting for Section 115BAB, for the domestic companies, engaged in manufacturing activities and incorporated on or after 01-10-201915%
Any Other Domestic company30%
Foreign Companies40%

Non-resident Companies :

Non-resident companies are typically liable to tax at 40% plus surcharge & education cess as applicable. However, income from long-term capital gains is taxable at the rate of 20% plus surcharge & education cess as applicable.

Tax Audit under the Income Tax Act, 1961 :

A Tax Audit is an audit, made compulsory by the Income Tax Act, if the annual gross turnover/receipts of the assessee exceed the specified limit. Tax audit is conducted in Sec 44AB of the Income Tax Act by a Chartered Accountant.

Applicability of tax audit:

BusinessSales / Turnover or Gross Receipt exceeds INR. 1 Crore (INR. 5 crore if the cash receipts and payments do not exceed 5% of the total receipts and payments respectively)
Profession

(For Ex. Architect, Advocate, Accountants, Doctors, etc.)

 Gross Receipts Exceeds INR 50 Lacs
Business u/s 44ADIf the Sales/Turnover or Gross Receipt is less than INR 2 Crore if such person is enrolled under the presumptive taxation scheme who claims that the profits of the business are lower than the profits calculated in accordance with the presumptive taxation scheme (presently this threshold limit is 8% profit on the sales / turnover or gross reciepts) would be required to obtain a tax audit report.
Profession u/s 44ADA Declaring the income at amount less than 50% of the gross receipts and whose income exceeds the basic exemption limit (which is Indian Rs 2.50 lacs at present) for relevant previous year but whose gross receipts are less than INR. 50 lacs.

If the assesses who is qualified under the presumptive taxation scheme but opts out of it after a specified period, he would lose the ability to revert back to the presumptive taxation scheme for a continuous term of 5 assessment years after the decision to opt out is taken.

Due Dates of Filing Tax Audit Report :

30th September is the due date to filing tax audit report under Section 44AB of the Income Tax, 1961 in India for all the assesses.

Penalty for Not Completing Tax Audit :

If a taxpayer who is required to obtain tax audit does not get the accounts audited, before the due dates, then penalty could be levied under Section 271B of the Income Tax Act.

  • 0.5% of the total turnover/gross receipts of the relevant financial year.
    • OR
  • Rs. 1,50,000. Whichever is lower.

However, according to the section 273B, no penalty would be imposed on the person if valid reason for such failure is proved.Thus, tax audit is a very important requirement under the Indian Income Tax Laws who are required to undergo such an audit. Failure to comply with the income tax rules would attract penalty and those wishing to avoid any penalty should ensure full compliance with all the rules of the income tax audit.

Who can Audit Your Account Books? :

In India, Chartered Accountantsholding Certificate of Practice issued by the Insititute of Chartered Accountants of India will audit the accounts and prepare the report as prescribed in Income Tax Act..

Forms of Tax Audit under the Income Tax Act 1961 :

Form 3CA, 3CD

Audit Report Form in case where accounts of an assesses has been audited under any other law.

Form 3CB, 3CD

Audit Form in case accounts of an assesses are not being subject to audit under any other act except Income tax Act.