Guide Well International

Personal Taxes

“The hardest thing in the world to understand is the income tax.” – Albert Einstein.

Personal tax refers to the tax you pay on your earnings and investment returns. This includes income from your salary, business profits, rental properties, and capital gains. It plays a vital role in supporting public services and government functions, ensuring that your contributions align with your financial position. Understanding personal taxes allows you to manage your finances more effectively while staying compliant with tax regulations.

Navigating personal taxes can be challenging, but with the right support, it becomes much simpler. At Guidewell International, we are committed to making tax compliance easy for you. Our professionals offer personalized tax solutions tailored to your financial needs. Whether you’re planning ahead, managing investments, or ensuring tax compliance, we’re here to assist you at every step. Let us handle the complexities so you can focus on making informed financial decisions with confidence.

Due Dates for Personal Tax

Tax Return Filing Deadline: Income earned between April 1 and March 31 must be reported by July 31 of the following year.

Timely tax filing is crucial to avoid penalties and interest charges. At Guidewell International, we offer a detailed tax calendar outlining key deadlines for filing returns, making tax payments, and submitting necessary documents. Our tax consultation services provide timely reminders and notifications, ensuring you stay compliant with tax regulations while enjoying peace of mind.

Expert Guidance for Applicability in Personal Tax

The amount of tax you owe is determined by the applicable tax slabs. Understanding these slabs and available exemptions can help optimize your tax liability within the legal framework. Whether you fall under the basic tax rates or qualify for special deductions, having the right knowledge is essential.

At Guidewell International, our tax consultants provide expert guidance to navigate the complexities of tax calculations, ensuring you maximize savings while staying compliant with tax laws.

Old and New Tax Regime

The tax slabs and rates in the old and new tax regimes are different. The old regime allows various deductions and exemptions. The new regime offers lower rates of taxes but permits limited deductions and exemptions.

Under the Old Tax Regime Slab Rates:

Income Slab Tax Rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Under the Old Tax Regime Slab Rates:

Income Slab Tax Rate
From 0 to 4,00,000 Nil
From 4,00,001 to 8,00,000 5%
From 8,00,001 to 12,00,000 20%
From 12,00,001 to 16,00,000 30%

Advance Tax

As per the Indian Income Tax Act, 1961, Advance tax, also known as “pay-as-you-earn” tax, is a system in which taxpayers are required to pay their tax liability in installments rather than in a lump sum at the end of the fiscal year. Many countries, including India, follow this system.

Here’s a brief overview of advance tax under personal tax in India:

Applicability

Advance tax is applicable to individuals, Hindu Undivided Families (HUFs), including salaried employees, self-employed professionals, freelancers, and businesses, whose tax liability after deducting TDS (Tax Deducted at Source) exceeds Rs. 10,000 in a financial year.

Due Dates

Advance tax is calculated based on income earned from April to March and is paid in four installments throughout the financial year. The payments are typically due on specific dates, spread across the year. Failure to meet these deadlines may result in interest charges and penalties.

Calculation

Professional tax consultation is required to estimate the total income for the financial year and calculate the tax liability. Income tax services ensure timely payment of advance tax in installments as per the prescribed schedule.

Installments

Advance tax is paid in four installments: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15.

Payment Modes

Advance tax can be paid online, such as through debit cards for selected banks, internet banking, or at designated bank branches. Our online tax consultants can provide professional guidance for all payment modes of advance tax.

Penalties

Failure to pay advance tax or underestimating the advance tax liability can attract interest under Section 234B and Section 234C of the Income Tax Act, 1961.

Heads of Income

Income is classified into different heads for tax purposes, each subject to specific rules and provisions. We will discuss the various heads of income, including salary, house property, business or profession, capital gains, and other sources. Our detailed explanations will help you understand how to categorize your income correctly and report it accurately in your tax return. Whether you’re a salaried employee, a self-employed individual, or a business owner, we will provide guidance tailored to your unique income sources and circumstances.

Head of Income Description
Income from Salary Earnings from employment, including salary, wages, bonus, commissions, and allowances.
Income from House Property Income generated from renting out property, such as residential, commercial buildings.
Business/Profession Profits derived from self-employment, business or professional activities, including services or goods sold.
Capital Gains Profits or losses from the sale or transfer of capital assets, such as stocks, real estate, or bonds or any other investments.
Other sources(Income) Additional income sources like dividends, interest, gifts, lottery winnings, or any other earnings.

Tax Planning (Exemptions & Deductions): Managing with Expertise

Strategic tax planning is key to minimizing your tax burden and maximizing your savings. Consulting tax services at Guidwell will help you identify eligible exemptions, deductions, and credits available under the tax laws to reduce your taxable income. From investments in tax-saving instruments to claiming expenses and allowances, tax advisory services will enable you to explore various avenues for legally optimizing your tax liability.

Personal Tax Litigations: Careful Handling by Guidwell

We are Income tax consultants in India, experts in handling complex tax disputes and litigations. Our team of tax advisors will keep you informed about potential tax issues and disagreements, helping you navigate through audits, assessments, and appeals effectively. We will discuss common areas of contention, such as interpretation of tax laws, transfer pricing, and international tax matters. With our guidance, you will be equipped to address tax disputes proactively and protect your financial interests.

Why Choose Guidwell for Personal Tax Services?

GUIDWELL tax consultants are experienced tax professionals who are well-versed in the latest tax laws and regulations. Clients can depend on us for accurate, precise, and up-to-date advice to ensure compliance and optimize their taxes.

Personalized Service

We understand that every individual’s financial requirements are unique. Our services are tailored to match your specific needs and objectives.

Proactive Approach

With tax consulting services at Mercurius, you stay a step ahead of changes in tax legislation, and we proactively advise you on how to manage your tax affairs.

Comprehensive Support

We provide a full range of personal tax services, such as filing tax returns, preparation for tax planning, and dispute resolution.

Client-Centric Focus

Your satisfaction is our priority. We are committed to providing exceptional service and building long-term relationships with our clients.