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Income Tax Planning

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Income Tax

  • Pay Tax to build the nation
  • Shows your responsibility towards your country
  • Failing to pay the taxes on time attracts unnecessary lawsuit.

What is Income Tax?

It is a direct tax which you are required to pay to the government of India from your earnings generating in this country. It does not matter whether you are NRI/ citizen of India, if the income earned by you has been generated inside the country then according to the Income Tax Act 1961 you are liable to pay tax. Filing of your income tax is a legal obligation as per the Income Tax Act 1961 your Income Tax return also acts as an important legal document. This Income Tax return documents becomes mandatory when you will apply for loans, visa and abroad education etc.

Who are required to pay Income Tax?

Income tax return is mandatory, when the total annual income of an individual exceeds the maximum not chargeable to tax, i.e Rs. 2,50,000 if the individual is less than the age of 60 years. The maximum amount not chargeable to tax for individuals aged between above 60 years but less than 80 years is Rs.3,00,000 & Rs. 5,00,000 is the maximum amount not chargeable to tax when the individual is above 80 years.

Filing your income tax return also becomes mandatory when:

a)The individual being a resident(separate explanation ) and non-resident(separate explanation)

i)Holds any asset (including any financial interest in any entity) located outside India or

ii)Has signing authority in any account outside India or

iii)Is a beneficiary of any asset ( including any interest amount from an entity) outside India or

b)The individual has deposited more than Rs.1 crore in aggregate in his Bank and current accounts or

c)The individual has incurred expenditure more than Rs. 2 lakh for foreign travel or

d)The individual has incurred expenditure more than Rs. 1 lakh towards electricity consumption or

e)The individual has made a total sales turnover or gross receipt in the business which exceeded Rs. 60lakh or

f)The individual’s total gross receipts from profession exceeds Rs. 10lakh or

g)The tax deducted at source is Rs.25,000 or more (Rs. 50,000 in case of resident senior citizen) or

h)If the individual has deposited an aggregate amount of Rs. 50lakhs or more in one or more savings bank accounts.

Consequences for non-filing of returns

If an individual fails to pay the income tax within the due date , then they may have to pay a fine upto Rs.10,000 . This penalty depends upon the delayed period. If the individual’s total income is below Rs. 5 lakhs then the penalty amount is Rs.1,000 . If the ITR is filed after 31st December of the relevant assessment year , then the individual have to pay a penalty of Rs. 10,000. If an individual fails to submit ITR within the due date then they will attract an additional amount of 1% of total tax liability for every month of delay from the relevant due date.

Some important due dates of filing returns

  • For individuals/Businesses (where auditing is not required)- 31st July
  • Businesses (which require auditing)- 31st October
  • Revised return- 31st December
  • Belated return - 31st December

New Tax regime from AY 2024-25 onwards

The budget of 2023 had introduced a new tax regime which will be applicable for AY 2024-25 onwards.

Let’s take a glimpse of what all changes are being made in the new tax system:

  • This tax system will replace the previous new tax system. That means whoever had opted for new tax system earlier will now be taxed at this new tax regime.
  • Previously, the rebate u/s 87a was at Rs. 12,500 but now it has been increased to Rs. 25,000. Which means that previously taxable income within Rs.5,00,000 was tax free but now the tax free taxable income has been raised to Rs. 7,00,000.
  • Earlier no standard deduction of Rs.50,000 could be claimed but now in the new tax system you can claim upto Rs. 50,000 as standard deduction for salaried individuals only.
  • A deduction of Rs. 15,000 can be claimed by every family pensioner.
  • In the new tax system there are no separate tax slabs based on the age. All individual are going to be taxed at the same rate.
  • The basic exemption was Rs. 2,50,000 but now it has been raised to Rs. 3,00,000.

Let’s understand the concept of these tax systems

Suppose Mr. Ravi has an annual salary income of Rs. 12,00,000 and has chosen old tax regime then his tax liability would be as follows:

First 2,50,000- Nil

Next 2,50,000 @5 %- 12,500

Next 5,00,000 @20% - 1,00,000

Balance 2,00,000 @30%- 60,000

Total -Rs. 1,72,500+ 4% = 1,79,400

Now keeping the income same if he chooses the new tax regime then :

First 3,00,000- Nil

Next 3,00,000 @5% - 15,000

Next 3,00,000 @ 10%- 30,000

Balance 3,00,000 @15%- 45,000

Total – Rs. 90,000+ 4% = 93,600

The difference amount comes to Rs. 85,800

Why choose us?

  • Professional tax preparers.
  • 1,000+ returns submission every year
  • First consultation absolutely free.
  • Don’t worry about the confidentiality as high end CMS and SSL is adopted. Therefore there is absolutely no chance of breach of your documents.

Some FAQ related to this topic

There are numerous reasons why there is a requirement for filing of tax return.

a. Nation Building – It greatly helps in the progress of the nation. Tax is the only means of payment which we make to the government for availing all the services that the government is providing for us.

b. Financial Planning – Tax planning is a vital element in your financial planning. After reviewing your financial situation annually, you can plan your taxes in a way which will help you optimizing your investment returns.

c. Supporting documentation – Your tax return serves as a legal proof of income and becomes a necessary document when you are applying for a loan or mortgages.

d. Record Keeping- Your Income Tax return is a record that you keep with the government. It will act as the justification of all your present assets.

e. Avoidance of unnecessary penalties or interests- If filing of returns is made precisely within the due dates then there is no worry for penalties or outstanding interests.

f. Refund of extra payment of taxes – For claiming your extra tax payments you are required to file your returns. Suppose your TDS has been deposited more than your actual tax liability then you must file your income tax return to claim the excess amount of TDS.

g. Important document for Loans and finances- Income Tax file serves as the main document for obtaining loan. It is the most vital document which determines your financial capability.

Capital Gains tax is the tax you have to pay when you sale any capital assets. Now what are capital assets? Capital Assets are Stock, Share, Real estate , Gold Jewelry and other investments. When you a sell a capital asset at price more than its purchasing price then capital gain occurs and in the opposite case capital loss occurs. The profit amount is being taxed at different rates based on the capital asset type. The Capital Gains are categorized into two types Short-term and Long-term… The fees vary from case to case.

This varies as per your return and as per your total capital gains. Taking everything into consideration the fees get determined. Capital Gains filing involves a very critical filing. To know about an overall cost estimation call us at this number 9433401915.

We have a specialized team for filing of tax returns; this team will communicate with you personally and confidentially. This team files your income tax return after properly analyzing your problem and according to the requirement of you.

There are lots of investments options which can be used as tax saving instruments

i) Life Insurance : It helps an individual to meet their different financial goals and it also serves as an tax saving instrument. An individual can save tax up to Rs. 1,50,000 annually under section 80C and maturity claims are also subject to exemption subjected to some clauses under section 10(10D).

ii) PPF : Public Provident Fund is long term investment tool which offers attractive rate of interests to its depositors. The interest earned from it is completely exempted from tax. It also gives a deduction u/s 80C of a total deposit of Rs.1,50,000 annually.

iii) NPS: The National Pension System (NPS) is a scheme of investment wholly sponsored by the government of India. It is designed to help the individuals for saving their hard earned money for retirement. An additional deduction of Rs.50,000 thousand can be claimed under section 80 CCD (1B).

iv) ELSS FUNDS: Investment in Equity-Linked Savings Scheme (ELSS) is an excellent way to save on taxes while potentially generating wealth through equity market investments. These funds are a type of mutual fund that primarily invest in equities and come with several tax advantages for investors in India.

There are different tax treatments according to the types of capital gain. If you gain from Long-Term Equity Oriented funds then you have to pay tax @10% in excess of Rs. 1,00,000 this means that Rs. 1,00,000 is not taxable , Suppose you gain Rs1,18,000 you are required to pay tax on Rs. 18,000 @ 10% . In case of Short Term Equity , you are required to pay @15% of your total short term gain. For Short term Debt you are not required to pay anything extra on you capital gains , the capital gain part will be added to you income and will be taxed according to the income slab rates. In case of Long-Term Debt fund you will be charged @20% however a provision for indexation is there. In case of shares the rule of taxation is applicable just like long-term equity and short-term equity.

All capital gains will be termed as short-term capital gains if the gain generating asset is being held for a period of 36 months or less. For example land, building and house property. However, there are some capital assets whose gains are qualified short term gains when these particular assets are held for less than 12 months. For example Equity or Preference Shares , Securities like Debentures, Bonds etc, Units of UTI , Equity Oriented Mutual Funds , Zero Coupon Bonds. Gains arising from capital assets which are held for more than 36months are called as long-term capital gains.

No it is a taxable income however there is no separate rate of taxation it is taxable as per normal slab rate of tax.

In case you have missed to show your capital loss in your ITR then you must revise it in the revised return u/s 139(5) . Filing your losses in you ITR helps you to set off with the capital gains of the relevant assessment year which eventually minimizes your tax burden. In case you have missed to show your capital loss then you must file revise return within 31st December of the relevant assessment year.

You can file 2 ITRs of previous two financial years.

There are many ways to minimize your tax burden on sale of capital assets those are:

i) Indexation- Calculating the cost of indexation may help you minimize your tax burden. It may have been that during the purchase of the said property was made with in exchange of a very nominal amount but however due to inflation it can be calculated as per the current indexation rate.

ii) Investment in Govt bonds(5 years lock-in-bonds)- You can invest in govt. approved bonds if you don’t feel like re-investing in a property. However you must invest in the govt. approved bonds within 6 months of sale to avail the deduction U/S 54 EC.

iii) Investment in new residential property : You can re-invest the sale proceeds by buying another residential property but condition is that the new property must be purchased within 2 years of sale of your previous property.

iv) Capital Gains Account Scheme – It is like a bank account where you can deposit your sale proceeds if you are unable to convert the sale proceeds into a property.

Yes the gain from sale of virtual assets is taxed @30%.

There are many ways you can save taxes by investing, which are as follows:-

i) ELSS Funds:- This is a popular tax savings tool which benefits the individual u/s 80C.

ii) PPF Funds- It is also a popular tax saving tool of individuals. Interest earned from it is also tax free.

iii) NPS – If you invest in National Pension Scheme then you get an additional deduction of Rs. 50,000 u/s 80ccd(1b) excluding total deduction of u/s 80C. That means the individual can avail a total deduction of Rs.1,50,000 + Rs. 50,000 = Rs.2,00,000.

It is taxable under Income from other sources head and TDS from winning from lotteries is unrecoverable even if your total income plus income from lottery is less than the basic exemption. Generally there is a tax of 30% on winnings from lotteries and games shows that TDS amount is deducted forever you cannot claim for a refund.

You can file the return of the relevant assessment year along with the return of last 2 financial years.

You can simply file a grievance to the Assessing Officer simply from your log in portal.

If income tax refund is not credited into your bank account then please cross check whether the details of your bank account and yourself including PAN card and name is same as provided with the Income Tax department or not. Check whether the Bank is properly validated or not. You can re-issue your refund amount to the corrected bank by selecting the option “Re-issue of refund” option inside from you Income Tax portal.

You can file a belated return after the due date but interests like u/s 234A,234B and 234C would be imposed against you also you would not be able to carry forward the relevant years’ losses certain deductions like 80C and 80D may be restricted.

As your savings bank account in India is earning interest that means income is accruing in India therefore you should file your Income Tax.

This depends on your income we have to calculate your total income by considering both the tax rates.

This is a duty of every citizen to file their Income Tax returns. This filing of return adds a dignified satisfaction and honor as the individual is contributing directly to the growth of the nation. Other than this, it also helps in proving your credit worthiness and helps you to get financial aids in the time of your requirement.

If the return is submitted after due date, then a late filing fees of Rs.5,000 shall be payable as per section 234F. However, if the person's total income does not exceed Rs. 5 lakhs, the late filing fee will be only Rs. 1,000.

Yes, you can claim relief in respect of income which is charged to tax both in India as well as abroad. Relief is either granted as per the provisions of double taxation avoidance agreement entered into with that country (if any) by the Government of India or by allowing relief as per section 91​ of the Act in respect of tax paid in the foreign country.

For all filing-related queries please contact us with the Whatsapp no provided or simply mail us at

There are many ways how Income Tax can benefit you

a. Gives you a high status of citizen of this country.

b. It helps you to manage your assets properly and keeps you tension free and helps you in your future growth.

c. It brings a sense of fulfilment

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