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Tag: Tax

  • How an ideal tax software solution can help you during tax season?

    How an ideal tax software solution can help you during tax season?

    If you are running a business then there are maximum chances that you must not be loving the tax season. Well, it is true that tax season is not something that you should like as it forces you to get involved in practices that you don’t like or don’t have time for. But you will also have to accept the fact that there is no way you can avoid the tax season and skip filing taxes for your business. If you will do so then there are maximum chances that the government will send an issue to either submit your taxes with a fine or shut the doors of your business forever.

    There is no denial in the fact that if you are planning to lower down the hassle during the tax season then you will have to choose an ideal tax software. Gone are those days when business owners used to sit with pen and paper in order to file taxes. You should know that in the modern era even the IRS requests you to file your taxes digitally as it doesn’t only save time but it also helps in saving our planet as well.

    But do you really know how an ideal accounting or tax software solution cloud based QuickBooks can help you during the tax season? Well, this is what we are going to discuss in this blog post.

    Speed up the process

    Filing taxes is all about time. Every tax season comes with a deadline and this is why you will have to make sure that you are filing the taxes before the deadline. But if you are planning to file taxes for your business then you will take care of many aspects and this is what consumes most of the time. Even after putting in lots of effort, time, and money, there are many businesses that are not able to file taxes on time and this mainly happens when you are not working with the right tax software solution.

    An ideal tax software solution will have all the features that you will need in order to file taxes successfully and this is how a good tax software will help you during the tax season. This is also one of the main reasons why businesses put so much effort, time, and money into choosing the right tax software solution.

    Make you more accurate

    If you are thinking that tax filing is about time then you are completely wrong. You should know that tax season is also about accuracy. You will need to be 100% accurate while filing taxes otherwise you will have to deal with many different types of issues. Well, it’s true that there is no way you can use pen and paper in order to become 100% accurate but even the wrong tax software will make things highly complicated for you. This is another reason why working with the right tax software solution is highly necessary.

    An ideal accounting and tax software solution like QuickBooks hosting for an accountant will help you in staying accurate and that too without putting in much effort. There are many things included in an ideal tax software solution that allows you to easily file your taxes as soon as possible and that too with 100% accuracy.

    Stay secure

    If you have never filed taxes before then one of the most important things you should know about tax season is online criminals become highly active during the tax season and they even start using different types of tactics in order to get their hands on the important data that keeps on moving during the tax season. Well, if you are going to use pathetic tax software for filing your taxes then there are maximum chances that online criminals will be there to get their hands on your data and this is what you will have to be concerned about.

    A good tax software solution will come with all the necessary and updated security features that will keep you safe during the tax seasons and this is why choosing the right tax software solution is highly necessary during the tax season.

    There is no way you can skip the tax season but the one thing that you can do is get rid of hassle during the tax season as this is the only way you will be able to comply with the rules and regulations laid down by the government for tax season.

    There are many tax software solutions out there and choosing the right one depends on your need. A good accounting and tax software will allow you to stay safe during the tax season and it will also help you in filing taxes quickly and with better accuracy.

     

     

  • Quote Your PAN and Save Excessive Taxes on Fixed Deposit

    Quote Your PAN and Save Excessive Taxes on Fixed Deposit

    For any financial transactions above Rs. 50,000 PAN (Permanent Account Number) is mandatory to quote. Fixed deposit is not an exception in this rule. Many investors hesitate to give their PAN, fearing theft of identity or excessive taxation. However, it is the myth. In reality, quoting PAN makes you a compliant citizen and secures your investment. You can always save tax if the income is within your taxable limits. Read on below paragraphs to know the importance of PAN card when you open FD with any bank or financial institute.

    Security of Investment

    Every citizen of India has a unique PAN card. It is quite possible to have a common name and surname of the individuals. However, they cannot have the same PAN card. Hence, in case your FD is misplaced by you, you can safely and rightfully claim your money by presenting your PAN card if you have quoted it while opening the FD. On the other hand, chances of fraud and miss-representation increases when no PAN is attached with your fixed deposit.

    The rate of TDS (Tax Deduction at Source)

    Every financial institution is mandated to deduct the income tax at source for interest income, popularly known as TDS. If your FD has PAN information, mandated TDS rate is 10% of interest income. In the absence of PAN, TDS shall be deducted at 20% rate. Hence, you are liable to pay double income tax when you do not quote the PAN.

    Tax Credit

    TDS cannot be claimed back while you file your income tax return. On the other hand, FD with PAN is eligible for tax credit. You can also claim the refund of the tax deducted if your gross income is within the taxable limit.

    TDS Certificate

    If no PAN is quoted, no TDS certificate is issued. Hence, even if your tax is deducted, you cannot claim a tax deduction in any of your income tax return. It is similar to the situation when you have made payment,but you cannot avail the receipt of the same. Consider applying PAN if you do not have the same.

    Tax Exemption

    If your gross income is below taxable limit, you can claim exemption from TDS. However, such exemption is not valid if your deposit does not bear PAN. This rule is also applicable for Form 15 G or 15 H that are widely used to prevent TDS from the fixed deposit. Hence, even if you are not liable to pay income tax because of your lower income, you have to pay heavy tax at the rate of 20%, only because of the absence of PAN.

    Limit on FD Amount

    Without PAN, you can open a fixed deposit from Bajaj Finance with a very limited amount of Rs. 50000 or less. No financial institution is allowed to open FD beyond this limit without furnishing PAN from the depositor.

    Benefits of Furnishing PAN in your Fixed Deposit

    There are dead-ended implications of not furnishing PAN in your fixed deposit. On the other hand, furnishing PAN card gives you several benefits. First and foremost, there is no limit on the investment amount. You can invest the amount of your choice without any limitation, to make your fixed deposit. If your gross income is below taxable limit, you can submit form 15 G or 15 H to prevent TDS from your interest income. In the case of taxable income, TDS will be deducted at the rate of 10% only. You shall be issued TDS certificate,and the tax credit will also be reflected in your form 26AS.

    Moreover, by any chance, if you miss your fixed deposit receipt, you can request for duplicate receipt from the bank or NBFC by presenting your original PAN card. The bank will retrieve the details from the system based on your PAN card and issue duplicate receipt. Hence, your money is safe when you use your PAN card while making a fixed deposit.

    Applying PAN is Easy

    Nowadays applying PAN is easy and online. You have to furnish basic details about your identity, residential address,and date of birth. Consider applying for the same if you do not have it, and enjoy legitimate tax saving on your hard earned money.

  • A Few Questions Asked to Tax Advisors Before Appointing Them

    A Few Questions Asked to Tax Advisors Before Appointing Them

    In the contemporary world most of the people manage to earn that much money, which serves the purpose of leading a pleasant livelihood at the end of the day. But with income comes the responsibility of paying the income taxes. We, the common mass, in general are not only confused about the regulations related to the income tax and tax returns and the investments but also are equally confused regarding whom to take tax advice from. As, bad income tax consultants would necessarily mean that you are always at a loss at the end of the financial year. Thus, you need to choose your accounting services carefully and appoint efficient people who can provide you effective tax advices in order to optimize your savings which at the end of your life span helps you to lead a lavish life.

    Here are a few questions that you would need to ask from your tax advisors before appointing them.

    1. How and how much do you charge for your services?

    Make sure that this question is not only asked in order to know the consultancy fee of the advisor but also to know regarding the fact that how they are charged. You must make sure that the person is not trying to make money by selling you a product.

    1. What licences, credentials and certifications do you possess?

    This is one of the primary questions you need to ask to the advisor you are visiting. This helps you in confirming that you have gone to an authentic place and not to a fraud.

    1. What kind of services do your firm provide?

    The answer to this question gives you an idea of whether you have gone to the right place or not. Kindly make sure that the place you have gone to matches your requirement specifically.

    1. Could I see a sample financial plan?

    This question helps you in judging the expertise of the income tax consultants whom you have planned to visit. The sample financial plan they produce will certainly give you an idea regarding their expertise.

    1. What is your investment approach?

    The answer to this question gives you a structured idea regarding the work process of the person you are going to rely upon in relation to optimizing your fiscal resources.

    1. How much contact do you keep with your clients?

    This helps you in judging the client relation and the client friendliness with the person. You can judge whether or not this tax advisor is client friendly or not.

    1. Does the person seem interested in me?

    This is probably the only question in the entire set you ask to yourself. The answer you get will be the most important one which will certainly help you in deciding whether or not you will appoint the person in question as your income tax consultant.

    Thus, it is very important to remember these questions in order to fulfil the selection criteria of the person you are going to rely on for the optimization and maintenance of your finance. Treat them with importance and help yourself secure a better future.