Direct Taxation

At KKKD & Co, we provide expert direct tax consultancy services tailored to enhance business decisions through innovative, tax-efficient strategies. Our goal is to help clients achieve their objectives while optimizing their tax positions. We focus on delivering results with a flexible, value-oriented approach that supports commercially viable decisions and reduces tax burdens. Our expertise ensures that our clients navigate the complexities of direct taxation effectively, maximizing financial outcomes.

The process of assessment and appeals under the Indian tax laws involves several key steps:

Before filing a tax return, every taxpayer must conduct a self-assessment of their income. This involves calculating the total income, subtracting any deductions, and then determining the tax payable. Taxpayers should also account for taxes already paid through Tax Deducted at Source (TDS) and advance tax payments. Any remaining balance, known as self-assessment tax, must be paid. Additionally, interest on delayed tax payments or defaults in advance tax payments must be settled. The procedure for self-assessment helps ensure that taxpayers are compliant with tax obligations and minimize the risk of errors in their returns.

Under the Income Tax Act, certain payments such as salaries, rent, interest, professional fees, commissions, and payments to non-residents require withholding tax at the source. This means the payer must deduct tax from the payment and remit it to the government. This mechanism allows tax authorities to collect taxes at the point of payment, thereby expanding the tax base and improving compliance.

Payers must adhere to specific requirements for depositing taxes, issuing tax credit certificates, and filing withholding tax returns. Failure to comply can lead to penalties, interest charges, and legal actions, including prosecution.

The chart below outlines the withholding tax provisions, which detail the types of payments subject to withholding and the applicable tax rates.

We offer a comprehensive range of direct tax services designed to meet various needs:

1. Income Tax Planning and Compliance

• Corporate Tax Planning: We provide expert advice on income tax planning for corporations, helping them optimize their tax positions and make informed financial decisions.
• Tax Withholding Responsibilities: Our team advises on all necessary tax withholding responsibilities, ensuring compliance with applicable laws and regulations.
• Financial Advisory: We keep clients informed about new amendments, circulars, notifications, and judicial rulings relevant to their financial interests.

2. Payment Verification and Reconciliation

• Vendor Payments: We verify all payments to vendors to ensure correct application of withholding tax rates and categories.
• Monthly TDS Computation: We compute the monthly Tax Deducted at Source (TDS) based on payments made, ensuring accuracy in tax deductions.
• Tax Reconciliation: We conduct monthly tax reconciliations of TDS to match amounts deducted with amounts deposited.

3. Compliance and Filing

• Preparation and Deposit: We prepare and deposit monthly challans for TDS payments before statutory due dates, ensuring timely compliance.
• Quarterly E-TDS Returns: We handle the filing of quarterly E-TDS returns, keeping track of all required filings and deadlines.
• Annual Income Tax Return: We assist in the preparation and filing of the annual income tax return, ensuring all income and deductions are accurately reported.

4. Certification Work

• Chartered Accountant Certificates: We issue Chartered Accountant certificates under Section 195 of the Income Tax Act for overseas remittances, facilitating compliance with international tax requirements.

Our direct tax consultancy services are designed to simplify tax compliance, enhance financial planning, and ensure adherence to all relevant tax laws. By leveraging our expertise, clients can focus on their core business operations while we handle the complexities of direct taxation. Our proactive approach ensures that our clients are well-informed and prepared to meet their tax obligations effectively.