INCOME TAX ACT, 1961 Compliances Services
The Income-tax Act, 1961 is the charging Statute of Income Tax in India. It provides for levy, administration, collection and recovery of Income Tax. India has a well-developed tax structure with clearly demarcated authority between Central and State Governments and local bodies.
Presently, in India the powers and authority to collect taxes in India are vested with Central Government. Central government exercises this power through Central Board of Direct Taxes (CBDT), which functions under Department of revenue, Ministry of finance.
Although there are not so many compliances directed by Income Tax Act, 1961, still few compliances remains which need to be honoured. S.K Patodia & Associates through a dedicated division provides following services related to Income Tax Act, 1961.
Obtaining Permanent account number
(PAN) is registrations of person with Income Tax authorities. It is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any “person” who applies for it. PAN enables the department to link all transactions of the “person” with the department. These transactions include tax payments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the “person” with the tax department.
To Apply PAN, form 49A prescribed by Income tax Act is required to be filled in. This form can be filed online. After the form is submitted online successfully, an acknowledgement is displayed. This shows a unique 15 digit acknowledgement number. This acknowledgement must be saved and printed for further process. The acknowledgement form must be sent to the Income Tax department. Before sending this, you will need to attach a few documents along with the acknowledgment form. This includes a proof of address and a proof of identity. Your name which is mentioned in these documents should be in the same format as that in the PAN application form.
Obtaining Tax Deduction Account Number (TAN)
TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates. The provisions of section 203A of the Income-tax Act require all persons who deduct or collect tax at source to apply for the allotment of a TAN. The section also makes it mandatory for TAN to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. An application for allotment of TAN is to be filed in Form 49B and submitted at any of the TIN Facilitation Centres meant for receipt of e-TDS returns
Tax planning as per Indian Laws and Tax Treaties
Tax Planning is a process in which Organizations evaluate their financial profile with the aim of minimising tax liability. Corporate Tax Planning activities generally seek to avoid legally triggering tax costs rather than illegally evading an existing obligation to pay tax. It is a forward looking activity which encompasses the strategic structuring of business operations in order to minimize taxliabilities. Under this service S.K Patodia & Associates undertake the analysis of Client’s requirement in terms of structure planning and sync those requirement with action that can be taken care off in pre business Set up phase so as to minimising future tax liability We help you in structuring your business transactions so that you maximise your after tax profit. We analyse your business activities and recommend alternatives consistent with your business requirement and also the applicable laws.