Direct Taxation Services
Taxporium offer income tax services involve tax computing on the income earned during a specific financial year, where a portion of the income is subject to taxes based on the rates set for that year.
The financial year extends from April 1st to March 31st of the subsequent year. Taxpayers are generally categorized as residents or non-residents, and within the group of individual taxpayers, there is a subcategory called ‘residents but not ordinary residents’.
Taxporium provides professional consulting services to individuals, partnerships, and corporations in India who are obligated to pay taxes according to Indian laws. Additionally, Taxporium assists in the submission of income tax returns for different types of individuals under the income tax act. This often overlooked aspect of taxation can lead individuals to make incorrect financial choices due to a lack of understanding and inadequate guidance. Taxporium aims to develop tax policies and plans that enable their clients to navigate the prevailing tax regulations and remain in compliance with the law.
Services Provided under Direct Taxation
- Preparing Computation of Income and Income Tax Return
- Appearing for Tax Assesment
- Tax Planning & Consultancy
- Direct Tax Compliances
- Compilation and Filing of e-TDS, e-TCS etc
Services Provided under Indirect Taxation
- GST Registration
- Preparing & Filing of All GST returns
- GST Compliances
Taxes serve as a means of generating income for the government. Income tax, a specific type of tax imposed by the central government, pertains to the earnings made by individuals and businesses in a given fiscal year. There are primarily two categories of taxes, namely direct taxes and indirect taxes. Direct taxes are those directly imposed on income earned, with income tax being a prime example. The calculation of taxes depends on the applicable rates corresponding to different income brackets in that particular fiscal year.
Taxpayers are mainly comprises of :
- Individuals
- Hindu Undivided Family
- Partnership Firms/LLP
- Companies/OPC
- Association of person
- Body of individuals(BOI)
- Artificial Persons
- Local Authority
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- Income from Salary – Income earned from salary and pension is taxable under this head of income
- Income from House Property – Income earned from renting a house property is taxable under this head of income.
- Income from Business and Profession – Profits earned by self employed individuals, businesses , freelancers or contractors & income earned by professionals like life insurance agents, chartered accountants, doctors and lawyers who have their own practice, tuition teachers are taxable under this head.
- Income from Capital Gains – Surplus Income from sale of a capital asset such as mutual funds, shares, house property etc is taxable under this head of Income.
- Income from Other Sources – Income from savings bank account interest, fixed deposits, winning in lotteries is taxable under this head.
- ITR-1: Individuals (residents) having income from salary, one house property, other sources and with a total income of up to Rs 50 lakh
- ITR-2: Individuals/HUFs not having any business or profession under any proprietorship. Individuals who have their income by selling assets or properties. Individuals having incomes from outside of India and total income exceed’s Rs 50 lakh
- ITR-3: Individuals/HUFs having income from a proprietary business or profession
- ITR-4: Individuals/HUFs having presumptive income from business or profession (taxpayers from professions like doctors, shopkeepers, designers, retailers, agents, contractors, etc)
- ITR-5: Partnership firms or LLPs
- ITR-6: Companies
- ITR-7: Trusts
Government encourage the investment and saving among the Taxpayers. Income Tax provides deductions in case of specific investments under Chapter VI-A of Income Tax.
Section 80C/80CCC/80CCD(1)– Deduction can be claimed by Individuals and HUFs upto maximum limit Rs1.50 Lakhs
– 80C – Investment made in ELSS, PPF/SPF/RPF, payments made towards Life Insurance Premiums, principal sum of a home loan, SSY, NSC, SCSS, etc.
– 80CCC – Payment made towards pension funds
– 80CCD(1) – Payments made towards Atal Pension Yojana or other pension schemes notified by government
– 80 CCD(1B) – Investments in NPS (outside Rs 1,50,000 limit under Section 80CCE) Maximum Rs.50,000/-
Section 80TTA – Interest on Saving Account – Deduction can be claimed by Individuals and HUFs.
– 80TTA – Maximum deduction on saving interest allowed is Rs10,000/-and does not include interest from FD, RD or Corporate bonds.
– 80TTB – Resident Senior Citizens can claim deduction under 80TTB with maximum limit of Rs50,0,000/-
Section 80GG – Deduction on House Rent Paid who do not receive HRA in their salary structure but live in rented accommodations.
Section 80E – Deduction on Interest paid on education Loan for Self, Spouse and children without any ceiling limit.
Section 80D – Deduction on Medical Insurance Premium Paid
– Deduction of Rs.25,000 under section 80D on insurance for self, spouse and dependent children.
– Additional deduction for insurance of parents is available up to Rs 25,000, if they are less than 60 years of age.
– Additional deduction for insurance of parents is available up to Rs 25,000, if they are more than 60 years of age.
Section 80DD – Deduction for Medical Treatment of a Dependent with Disability.
– Normal Disability (40% to 79%) Deduction amount Rs. 75,000/-.
– Severe Disability (80% & more) Deduction amount Rs. 1,25,000/-.
Section 80DDB – Deduction is available to a resident individual or a HUF for any money you spend on medical treatments for yourself or your dependents
– Age less than 60 – Deduction is Amount paid or 40,000, whichever is less.
– Age more than 60 – Deduction is Amount paid or 1,00,000, whichever is less.
Section 80DD – Deduction for individual with Disability.
– Normal Disability (40% to 79%) Deduction amount Rs. 75,000/-.
– Severe Disability (80% & more) Deduction amount Rs. 1,25,000/-.
Section 80G – Deduction towards donation maid for Social Cause.
– 80G are eligible for deduction up to either 100% or 50% with( subject to 10% of adjusted gross total income) or without restriction.
