Steps for E-Filing ITR Online:
There are seven types of ITR forms in India: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. The applicability of these forms will completely depend on the nature and income of the taxpayer. Only ITR-1, ITR-2, ITR-3, and ITR-4 are applicable for individuals. ITR-5, ITR-6 and ITR-7 are applicable only for companies, firms and Trusts.
Here is what you need to do for E-Filing ITR online:
- Register yourself on the Income Tax E-Filing Portal
- Login to the Income Tax E-Filing Portal for income tax e-filing.
- Select the Appropriate ITR Form
- Fill in the Required Details
- Validate and Submit the Form
- E-Verify the ITR
Swasthik & Co Can Assist You in the Income Tax Return filling Process:
We have a clear and well-established process for tax filing. Our tax filing process has been defined keeping in mind the unique requirements of all categories of taxpayers. Our team is also quite tech-savvy and will make use of Information Technology to offer you the services in a highly streamlined manner.
From tax advisory, tax computation and tax filing services to asset and liability tax computation services, we have got it all covered for you. We will also provide you with tax-saving tips and tax litigation support so that you can end up saving yourself quite a lot of money.
The data collection process is done safely and securely through WhatsApp. We will send you personalised emails so that the entire tax filing process can be carried out in a smooth and hassle-free manner.
Tax Audit:
A tax audit is the careful analysis of an individual or business entity’s financial and tax records to ensure compliance with tax laws and regulations. The purpose of a tax audit is to verify that the tax returns filed by the taxpayer are accurate and complete and that the taxpayer has paid the appropriate amount of tax owed.
Eligibility and Applicability:
Criteria for Eligibility of Tax Audit:
Gross receipts: The gross receipts of a business may be used as a criterion for tax audit eligibility. This is often used for smaller businesses or self-employed individuals.
Profits: In some cases, tax audit for companies becomes mandatory if their profits exceed a certain threshold. This is often used as a criterion for large corporations.
Type of business: Certain types of businesses are more likely to undergo a tax audit. For example, businesses that deal in cash transactions or have a high rate of non-compliance are subject to more frequent audits.
Applicability of Tax Audit as per Income Tax Act, 1961:
Business Turnover: An income tax audit is mandatory if a business opts for presumptive taxation under 44AD and has yearly turnover more than Rs. 2 Cr.
Also, if a business entity which is covered under 44AD, 44AE, 44AF, 44BB, 44BBB declares its profit as a certain percentage of turnover, which is below the prescribed limit and its income exceeds the basic exemption limit, it is applicable for tax audit.
If any business that does not opt for a presumptive taxation scheme and its sales and turnover exceed more than Rs. 1 Cr, it is applicable for tax audit. If the cash transactions are up to 5% of the total gross payments, then the threshold limit is increased up to Rs 10 Cr from FY 2021-22.
If a business entity declares profit as per presumptive taxation scheme under 44AD and its income is within maximum non-taxable amount for 5 consecutive years, then the entity is eligible for income tax audit.
If a business incurs loss with a sale of above 1 Cr and does not go for presumptive taxation scheme, then it should be audited. When a business incurs a loss with an income which is more than the income declared in presumptive taxation scheme 44AD, it must also be audited.
Professional Receipts: A tax audit is required if the receipts of a professional exceed Rs. 50 lakhs in a financial year. If a profession which is eligible under 44ADA, claims profit below the prescribed limit as per mention scheme, then the person should go through income tax audit process.
Section 10(23C) Entities: Entities that are registered under Section 10(23C) of the Income Tax Act, 1961, and whose annual receipts exceed Rs. 5 Crore, require the services of a statutory audit firm.
Section 11 Trusts: A tax audit is also mandatory for trusts registered under Section 12A whose annual receipts exceed the maximum non-taxable amount.
Income Tax Advisory:
Income tax advisory services involve providing expert guidance and advice on income tax matters to individuals and businesses. Income tax advisors help clients navigate complex tax laws, optimize tax planning strategies, and ensure compliance with income tax regulations. These services may include tax planning, structuring transactions to minimize tax liabilities, identifying tax-saving opportunities, and providing guidance on tax implications of financial decisions.
Assessments and Appeals under Income Tax Act:
Assessments under the Income Tax Act involve the evaluation of a taxpayer’s income, deductions, and tax liabilities by tax authorities. Tax authorities conduct assessments to ensure accurate reporting of income and compliance with tax laws. If a taxpayer disagrees with the assessment or faces tax disputes, they can file appeals to challenge the tax authorities’ decisions. Income tax appeal consultants play a vital role in assisting taxpayers with case assessment, analysis, and representation during the appeal process to resolve tax disputes and ensure fair treatment under the Income Tax Act.