Tax Planning, Income Tax Assessment/Notices & ITR for Business

With Bright Accounts, you get smart and efficient tax planning tailored to your financial goals, Income Tax Returns Filing for your Business and all the expertise in matters of Income Tax Assessment and Notices.

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    Introduction

    Tax planning is a legal strategy aimed at minimizing your income tax liabilities by strategically utilizing exemptions, deductions, and advantages to reduce your overall tax burden. However, it is essential to conduct tax planning within legal boundaries. An understanding of tax planning principles is essential for optimizing tax savings and managing your financial resources effectively. This legitimate and intelligent financial approach involves making informed decisions to leverage available tax benefits, ultimately reducing the amount of tax payable. 

    With Bright Accounts, you get smart and efficient tax planning tailored to your financial goals. We ensure that your tax planning is conducted within the legal framework, helping you maximize your tax savings while staying compliant with the relevant regulations.

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    How does
    Tax Planning help you

    The following are some of the ways in which Tax Planning can benefit you

    Reduced Tax Liability

    Tax planning helps minimize your tax liability by utilizing available exemptions, deductions, and credits. This allows you to keep more of your hard-earned money. Several investment schemes under the act also help to lower the tax burden.

    Legal Compliance

    Proper tax planning ensures that you stay within the legal framework. It helps you take advantage of legitimate tax-saving avenues while avoiding illegal practices that could lead to penalties and legal issues.

    Optimized Financial Strategy

    By incorporating tax planning into your overall financial strategy, you can make informed decisions that align with your goals. It ensures that your financial plan is tax-efficient and helps you achieve your objectives effectively.

    Peace of Mind

    Knowing that your tax affairs are in order and that you are making the most of available tax benefits provides peace of mind. It eliminates the stress associated with tax-related uncertainties and allows you to focus on your financial goals.

    Increased Savings

    Through strategic tax planning, you can identify opportunities to save money on taxes, resulting in increased savings. This extra savings can be redirected towards investments, emergency funds, or other financial goals.

    Improved Cash Flow Overtime

    Tax planning can help improve your cash flow by deferring taxes or spreading payments over time. For ex, aligning income and expenses in a tax-efficient manner ensures a smooth flow of funds throughout the year.

    process

    Tax Planning in just

    3 Simple Steps

    At Bright Accounts, we have seamlessly simplified the Tax Planning journey. This makes your experience smooth, structured and easy.

    • Connect with Bright Accounts expert
    • We collect basic information
    • Gather required data
    • Review & Check-up
    • Review financial statements
    • Assess goals
    • Analyze sources of income
    • Make a Tailored Tax Plan

    Bright Accounts will help you understand where you stand financially, income and tax wise. We will then create a custom Tax Plan that suits your goals and provides you maximum tax savings. Our goal is to empower you with the knowledge and tools to achieve your financial dreams.

    Your Tax Planning is done by Bright Chartered Accountants and Company Secretaries.

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    ITR for business

    Let us help manage your businesses IT Returns

    Ready to simplify your business taxes? Connect with Bright Accounts today for a smoother and stress-free experience in filing your business tax returns!

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    who shall file

    Who has to file Business Returns

    Whether your business is in its early stages or well-established, we provide the support needed to ensure compliance with deadlines and regulations.

    Proprietorship Firm

    In India, proprietorship firms are required to file income tax returns annually. Since the Proprietor (business owner) and the Proprietorship Firm are one and the same, the income tax return filing process for a proprietorship firm is similar to the procedure for individual income tax returns. The income tax slab rates for Proprietorship Firm are also same as the tax rates for Individual.

    Private Limited Company

    All Private Limited companies, whether domestic or foreign must file income tax returns annually. Even dormant companies without transactions must comply. Tax Audit by a Chartered Accountant is mandatory each year for all companies, regardless of turnover or profit/loss. Filing returns is a mandatory requirement under the Income Tax Act.

    Partnership Firms

    All partnership firms, regardless of income, must file annual tax returns. Operating as separate legal entities, they are taxed at 30% of total income. A 12% surcharge is applicable when income exceeds Rs.1 crore. Even with no business activity, filing a NIL return is mandatory. This process aligns with the Income Tax Act's regulations.

    LLPs

    LLPs are regarded as separate legal entities. Because of this they must file income tax returns annually, regardless of income or loss. Taxation for LLPs is separate from the partners and aligns with rates applicable to Indian companies. LLPs face a 30% income tax rate on total income, with a 12% surcharge for income exceeding Rs.1 crore. Even with no business activity, LLPs must file a NIL income tax return before the due date.

    Income Tax Assessment and Notices

    Let us help deal with your Income Tax Assessment and Notices

    Occasionally, taxpayers  receive Income Tax notice, signaling a closer inspection of their financial details. Understanding both the assessment and notice procedures is essential for taxpayers.

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    process

    Income Tax Assessment

    process simplified

    At Bright Accounts, we have broken down the entire process into 3 parts. 

    • Submission of Documents
    • Income Tax Returns (ITR)
    • Form 16 and Salary Slips (for salaried individuals)
    • Interest Certificates
    • Tax-Saving Investment Proofs
    • Rent Receipts, Donation Receipts and Business Receipts
    • Medical Bills & Insurance Premiums
    • Evaluation by ITD
    • The ITD reviews the submitted documents to assess the accuracy of income and deductions claimed by the taxpayer
    • Assessments are generally done based on the details provided in the ITR and supporting documents.
    • Outcome

    After assessment, the ITD issues an intimation or assessment order, indicating the final tax liability or refund.

    Understanding Income Tax Notices

    Let's look at the possible reasons for receiving Income Tax Notices, the time period to respond and possible outcomes of a Tax Notice.

    Reasons for Notice

    • Discrepancies in income details
    • Unreported income
    • Suspected tax evasion
    • Non-compliance with tax laws

    Response Period

    • Taxpayers are required to respond within the stipulated period mentioned in the notice.
    • Response periods differ as per the case.

    Reasons for Notice

    • Additional information supporting income and deductions
    • Invoices, purchase orders, or contracts (if requested)
    • Any other documents specified in the notice

    Possible Outcomes

    • Closure of the notice with no further action
    • Adjustment of tax liability
    • Further investigation or audit

    Understanding the income tax assessment process and responding appropriately to notices are integral aspects of maintaining financial compliance. Timely and accurate submission of required documents ensures a smooth assessment, minimizing the likelihood of receiving notices and facilitating a transparent tax filing experience.

    Why Bright Accounts

    There are many reasons why clients choose Bright Accounts, but from our experience we have listed the four main reason why you should go with us.

    Bright & Knowledgeable

    Bright Accounts delivers high quality financial services by a team of bright and knowledgeable experts.

    Always happy to help

    Bright Accounts commit to provide dedicated support and assistance to our clients.

    Professional & Approachable

    We maintain a high level of professionalism while being easily approachable for our clients.

    Easy & Quick

    We focus on streamlining and simplifying the complex processes for our clients.

    Our tax advisors are not only certified Chartered Accountants but also have good experience.

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    Frequently Asked Questions

    An Income Tax notice for Scrutiny Assessment is typically issued by the Income Tax Department when they require further examination of a taxpayer’s return. It can be sent electronically or through traditional mail.

    Generally, a scrutiny assessment notice must be issued within 6 months from the end of the financial year in which the return was filed. However, there are exceptions, and the time limit can be extended in certain cases.

    • Self-Assessment: Taxpayers assess and report their own income, calculate tax, and pay it.
    • Assessment by the Tax Department: The Tax Department assesses a taxpayer’s income and tax liability through various processes, such as Scrutiny Assessment and Best Judgment Assessment.

    Tax Planning is the process of organizing one’s finances in a manner that reduces tax liabilities within the legal framework. It involves making strategic decisions regarding investments, expenses, and other financial activities to minimize the tax burden.

    Tax Planning should ideally be an ongoing process that starts at the beginning of the financial year. However, it can also be initiated at any time to take advantage of tax-saving opportunities before the end of the financial year.

    • Investing in tax-saving instruments such as Public Provident Fund (PPF), Employee Provident Fund (EPF), Equity Linked Savings Schemes (ELSS), etc.
    • Claiming deductions under various sections of the Income Tax Act for expenses such as house rent, medical insurance premiums, education loans, etc.
    • Utilizing exemptions and allowances available under the tax laws, such as HRA (House Rent Allowance), LTA (Leave Travel Allowance), etc.
    • Planning for long-term capital gains tax by holding investments for the required duration.

    Determining the most effective Tax Planning strategies requires a thorough analysis of your financial situation, income sources, investment goals, and tax-saving options available. Consulting with a tax advisor or financial planner can help you identify suitable strategies tailored to your specific needs.

    Improper Tax Planning, such as engaging in tax evasion or aggressive tax avoidance schemes, can lead to severe penalties, fines, and legal consequences. It can also damage your reputation and financial stability. It’s crucial to engage in ethical and legal Tax Planning practices to avoid such risks.

    Bought Together

    There are many reasons why clients choose Bright Accounts, but from our experience we have listed the four main reason why you should go with us.

    Outsource Accounting & Bookkeeping

    Save valuable time, money and labor by outsourcing your accounting and bookkeeping tasks to Bright Accounts experts.

    File your TDS Return easily today!

    Need help filing your TDS Returns? Bright Accounts experts will ensure an easy, on time and error free TDS Return Filing process.

    Simplify GST Annual Returns Filing process

    Let Indirect Tax experts from Bright Accounts file your annual Goods and Service Tax Returns in a timely and convenient manner.