News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
Direct Tax »
 Received a tax notice from CBDT on high-value transactions in FY19? Here's what you should do
 TDS refund to be claimed only on filing ITR for final tax liability
 TDS not levied on PF withdrawal if you work for five continuous years
 CBDT deploys two-third of its workforce for faceless assessment scheme
 Do you need professional help in filing ITR? Here's how much it will cost you
 What is the TCS on foreign remittances?
 CBDT notifies rules on tax exemption for District Mineral Foundation Trusts
  List of documents required to file income tax returns Filing ITR 2019-20?
 Tax system needs efficiency in case selection, consistency in assessment
 I-T dept prepares to implement faceless income tax appeals from September 25
 Income Tax returns: Banks, Post Offices can now check your ITR to deduct TDS
 Banks get 'ITR filing compliance check' tool to track non-filers
  My income tax return status shows 'invalid returns'. Should I file fresh ITR?
 You may have to file ITR this year even if your income is below taxable limit
 CBIC notifies Net Tax Liability to be Considered for Interest on Late GST Payments with effect from Sep 1, 2020

Do you need professional help in filing ITR? Here's how much it will cost you
September, 14th 2020

The deadline for tax filing has been extended but taxpayers should not wait for the last few days to complete this critical task.

Here are a few things to keep in mind when you sit down to prepare your tax return.

  • 30 Sep: Last date for filing tax return for financial year 2018-19 (Assessment year 2019-20)
  • 30 Nov: Deadline for filing tax return for financial year 2019-20 (Assessment year 2020-21)

How much are you willing to spend?

Filing income tax returns is not very complicated for most people. But taxpayers with complex finances and various sources of income need professional assistance.

Can be filed for free or at a nominal cost of Rs 100-200 if you have
  • Salary or pension
  • Interest
  • Rent from one house property
  • Total income less than Rs 50 lakh
Can be filed free if you are familiar with tax rules. Otherwise pay Rs 500-800 if you have
  • Salary or pension
  • Interest
  • Rent from more than one house property
  • Capital gains
  • Dividends
Foreign assets and income require professional assistance. Cost can be Rs 2,000-4,000 if you have

  • Salary or pension
  • Interest
  • Rent from more than one house property
  • Capital gains
  • Dividends

Do you really need professional assistance?
Most taxpayers are not aware of the finer points of taxation. A professional can ensure you file an error-free return. Here are a few points that individuals miss when they file tax returns themselves.

  • New tax deductions

Certain new tax deductions have been introduced in recent years. These include the Rs 50,000 deduction for interest to senior citizens under Sec 80TTB, the standard de ..

  • Revised Form 26AS
From this year, your Form 26AS will also mention the high value investments and transactions carried out by you during the financial year. If you take help of a tax professional, he will ensure that the expenses and investments in the Form 26AS reconcile with the income declared in your tax return.

  • Capital gains and dividends
Tax rules have also changed and long-term capital gains beyond Rs 1 lakh from stocks and equity funds are now taxable. Dividends beyond Rs 10 lakh are also taxable. A tax professional will ensure that the tax on capital gains is not missed when you file your return.

  • Adjustment of capital losses
Short-term or long-term capital losses made during the year can be adjusted against other gains. If you lost money in any investment last year, you can set off the loss against other taxable gains. Unadjusted losses can be carried forward to the next financial year.

  • Correct indexation values
Inflation can bring down your tax by adjusting the buying price of an asset to the inflation during the period of holding. The calculation is slightly complicated but a tax professional can help calculate the tax correctly.

  • Tax free incomes
Many incomes (such as PPF interest, dividends up to Rs 10 lakh and long-term capital gains of up to Rs 1 lakh from stocks and equity funds) are tax free, but still need to be declared in the tax return. Not mentioning this income may not invite a notice, but could prove tricky when the investments mature in future.

  • Illness and disability
If a dependant suffers from any of the diseases specified under Section 80DDB, a taxpayer can claim a deduction. Dependants can include spouse, children, parents and siblings. If the taxpayer himself is disabled, he can claim deduction under Section 80U.



Home | About Us | Terms and Conditions | Contact Us | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting