Tax planning could be a tedious task involving exemptions, deductions, rebates, and due dates. The primary aim of managing tax is to ensure you get all the benefits while minimising your tax burden. However, it is not as simple as it could seem; you need to adhere to various sections and sub-sections along with due dates, and even a single default can attract a penalty.
Thus, to plan your tax efficiently and decrease your tax liability, you should consider consulting a Chartered Accountant (CA). A CA is a financial professional, who is well-versed with the F&A laws and offers the best options to avail tax benefits and helps with tax & financial planning.
Besides helping you with financial planning, here are some more reasons why you need to approach a CA:
1. Accurate Deduction and Tax Planning:
Not analysing and streamlining your investments outstretch your tax liability, and you end up paying more than you should. A CA helps you with efficient tax planning while estimating exact deductions resulting in fewer tax liabilities.
2. Filing Your Taxes for First Time:
Tax filing is complicated, especially if you are doing it for the first time. It also increases the risk of mistakes; it’s best to make decisions under expert supervision. Taking advice from a CA will prevent you from misinterpreting statements or disregarding any expenditure.
3. Struggling with Apprehension of Tax Laws:
Tax laws in India are governed by the Income Tax Act 1961. To avail all the applicable benefits, you need to understand the various sections and sub-sections of the Act. For instance, to avail benefits on your health insurance premium, you should know Section 80D. Similarly, for monetary advantages on investments like Equity Linked Saving Scheme (ELSS) or National Pension Scheme (NPS) or Public Provident Fund (PPF), etc., you should know Section 80C. Comprehending all of these tax laws can be cumbersome. This is where consulting with a CA could prove beneficial in your tax planning exercise.
4. If Technology is not Your Forte:
Gone are the days of filling out forms and filing taxes on paper. Today, tax return filing has been shifted to e-filing, which may be difficult if you aren’t technologically adept. In such a case, consulting with a CA could help you with the digital aspect of the filing too. You can get expert advice with just a single call with minimal charges.
5. Above and Beyond Tax Filing:
A CA performs a wide range of functions apart from just tax filing, like financial planning, risk analysis, conducting financial audits etc. This means, that even if you are adept at filing your own taxes that does not mean you would not need the help of a CA. You can avail their services for record-keeping, tracking payments, tracking refund rebates, and more.
Tips for Choosing a Chartered Accountant
Here are some tips you should use in order to select an ideal Chartered Accountant:
- Various CAs possess expertise in distinct functions. For instance, some CA may specialise in individual taxation, while some in service taxes and so on. Ergo, always choose according to your needs.
- Enquire about the services and the cost involved. Some CAs, along with preparing tax returns and filing them on behalf of the client, also aid in finding the best investment instruments.
- Never shy away from asking questions like how many clients’ have employed their services or the years of experience in tax filing, etc.
Most people file taxes at the end of the year, making all the investment decisions hastily. These abrupt investments may fail to be efficient, keeping you from availing optimum tax benefits. Therefore, consulting a CA saves you time and makes your tax filing seamless and hassle-free.