Direct Taxation
Direct Tax Consultancy Services in India
At ARKC Advisors we provide expert direct tax consultancy services tailored to enhance business decisions through innovative, tax-efficient strategies. Our goal is to help clients achieve their objectives while optimizing their tax positions. We focus on delivering results with a flexible, value-oriented approach that supports commercially viable decisions and reduces tax burdens. Our expertise ensures that our clients navigate the complexities of direct taxation effectively, maximizing financial outcomes.
Assessment and Appeals
The process of assessment and appeals under the Indian tax laws involves several key steps:
Self-Assessment
Before filing a tax return, every taxpayer must conduct a self-assessment of their income. This involves calculating the total income, subtracting any deductions, and then determining the tax payable. Taxpayers should also account for taxes already paid through Tax Deducted at Source (TDS) and advance tax payments. Any remaining balance, known as self-assessment tax, must be paid. Additionally, interest on delayed tax payments or defaults in advance tax payments must be settled. The procedure for self-assessment helps ensure that taxpayers are compliant with tax obligations and minimize the risk of errors in their returns.
Withholding Taxes on Non-Salary Payments
Under the Income Tax Act, certain payments such as salaries, rent, interest, professional fees, commissions, and payments to non-residents require withholding tax at the source. This means the payer must deduct tax from the payment and remit it to the government. This mechanism allows tax authorities to collect taxes at the point of payment, thereby expanding the tax base and improving compliance.
Payers must adhere to specific requirements for depositing taxes, issuing tax credit certificates, and filing withholding tax returns. Failure to comply can lead to penalties, interest charges, and legal actions, including prosecution.
The chart below outlines the withholding tax provisions, which detail the types of payments subject to withholding and the applicable tax rates.