Jilian Consultants Co., Ltd.
Jilian Consultants Co., Ltd.

Tax Planning In India: A Complete Guide

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What is Tax Planning?

Tax planning is one of the key features of personal finance as it is an inevitable part of our savings plans. The most important goal of taxpayer is to minimize his Tax Liability. In order to attain this objective, every taxpayer follows three methods; which are Tax Planning, Tax Avoidance and Tax Evasion. However, Tax Avoidance and Tax Evasion is not legal and during the tax planning season in India, there are a lot of financial mistakes committed by individuals. People fail to assess their tax liability and postpone the tax savings to last minute. This leads to paying up unnecessary taxes or opting for unnecessary tax savings. Strategies for income tax planning in India often concentrate more on deduction under section 80C of the income tax code.

Tax planning is considered an integral part of an overall financial planning. As people often face problems in assessing the actual tax liability, this in turn compel them to pay more than required amount in form of taxes or buy unnecessary products. A common mistake is also made by taking tax planning tips from friends and family who may not be experts affects your overall financial plan.

A good tax planning service makes paying taxes smartly by utilizing the provisions in the Tax Laws to minimize the tax liability. The best tax saving plan will include an integrated approach over tax savings on the financial goals. Tax Planning is also required in order to avail exemptions, deductions and rebates provided in the Income Tax Act. The Income Tax laws of India offer various methods for Tax Planning but basically, they are provided mainly in the form of exemption.

At Jilian we help pay the right amount of tax, not more and not less. We ensure and properly plan taxes in such a way that the capital, income and gain remains tax proof and are more productive.

Tax Planning in India for Businesses

The business tax planning services in India are provided for companies and organizations as well as corporate professionals. Usually clients are assigned chartered accountants on an exclusive basis as a part of these services.

The clients are constantly in touch with the chartered accountants via virtual means, getting assistance in their tax planning, accounting compliance related requirements.

The clients can contact the chartered accountants as per their convenience. These plans are mostly available for one year each with namely the following services:

  1. Latest corporate tax planning software.

  2. Rectification filing of ITRs if there are errors in the original entries done by the users.

  3. Virtual support for dealing with the queries of the clients.

  4. Reminder notifications through message services.

  5. Questions regarding corporate tax planning are answered through e-mails.

  6. Interpretation of intimation notices.

Tax Planning Services at Jilian India:

Direct Tax Advisory: A business company in India may need to pay three kinds of direct taxes- Corporate Taxes, Minimum Alternative Tax (MAT)and other direct taxes if applicable. Following are the broad guidelines for these taxes –

  • Corporate Tax– For a domestic company, the prevailing tax rate is 25%. In addition to this, a surcharge may apply (based on the company’s profit levels) and a cess of 4% applies to all companies (irrespective of profit levels). Foreign companies are required to pay a basic tax rate of 40% (plus surcharge and cess).

  • Minimum Alternate Tax– Because of the differences between calculation of accounting profit and taxable profit, the Government introduced MAT which is applicable on book profits (if they exceed tax profits). The MAT rate is currently 18.5% of the book profits plus surcharge and cess. Every entity would need to pay the higher of corporate tax or MAT.

Indirect tax services: Tax system in India has undergone a change majorly in July 2017 with the introduction of GST, replacing the erstwhile systems of excise, VAT, Service Tax, etc. This new policy provides greater transparency and fairness across the range of goods and services providers, however it also introduces significantly higher compliance requirements in the form of multiple returns every month, multiple tax payments every month and constant reconciliation of tax credits being claimed by each entity. All GST filings are necessarily required to be done online. Because of these new changes several businesses are opting for professional indirect tax services, instead of placing the responsibility on their own teams. A good GST services provider understands the system and challenges well and ensures that the transition to the new tax regime is seamless. At Jilian, we assist our clients periodically the following indirect tax services:

  • GST registration and migration

  • Ongoing calculation of GST liabilities and credits

  • Filing of GST returns

  • Liaising with tax authorities in cases of tax demands, scrutiny or disputes for GST

  • Interpretation of GST Act and specific sections based on clients’ industry, products, exporter/importer status and other unique circumstances

A good tax planning service makes paying taxes smartly by utilizing the provisions in the Tax Laws to minimize the tax liability. The best tax saving plan will include an integrated approach over tax savings on the financial goals. Tax preparation at Jilian optimizes tax planning and management by knowing the tax liability and he impact of tax savings on your available surplus by evaluating all your tax saving investments based on their merit. We at Jilian design best tax saving plans through detailed assessment, by avoiding unnecessary tax mistakes that cause money outflow in the name of tax savings.

No one likes to pay Taxes, but if something binds you under the jurisdiction of law, it becomes more of a responsibility and less of an obligation. At Jilian we have a team of tax professionals equipped with knowledge and experience necessary to ensure the safety our clients. We plan the tax payments in such way so as to avoid the tax payment at the same time complying with the provision of law. We serve both foreign and domestic entities and individuals while opting only legal tax practices. Our team of experts provide our clients compliance with ever changing laws and regulations. Our Tax professionals provide assist through flexible hours, flexible locations and guaranteed results. And, amidst the Covid-19 pandemic, Jilian has an efficient business continuity plan in place along with keeping in mind our ginormous responsibility of safe guarding the health of our employees and of course, our clients and therefore, ensure to keep our client service process hassle-free and flexible.