A ppt on Direct Tax

1. Income Tax: A Master Class
Good morning and welcome! As a Direct Tax Consultant and BNI
Celebrations member, I am here to guide you through tax compliance
with clarity and ease by taking a short Master Class on Income Tax.

2. Understanding Direct Tax
What is Direct Tax?
A tax paid directly to the government, like Income Tax.
Examples
• Income Tax
• Corporate Tax
• Wealth Tax (erstwhile)
Importance
Direct taxes contribute to nation-building and infrastructure.
Law
Governed in India by the Income Tax Act, 1961.

3. Five Heads of Income
Income from Salaries
Earned by employees.
Income from House Property
Rental income from owned properties.
Business or Profession
Profits from commercial activities.
Capital Gains
Profit from asset sales like stocks or property.
Other Sources
Interest, dividends, lottery winnings, etc.

4. Income from Business and
Profession
Key for BNI Members
Accurate profit calculation is essential.
Deductible Expenses
Rent, salaries, raw materials, depreciation.
Common Challenges
Keeping accurate records and claiming correct deductions.
Tax Audit
Required if turnover exceeds INR 1 Crore/50 lakh (Section 44AB).

5. Navigating Tax Regimes: Old vs. New
Old Regime
• Allows deductions and
exemptions
• Examples: HRA, LTA,
80C
New Regime
• Lower tax rates
• Fewer deductions
allowed
Choosing Wisely
Depends on your income &
investment strategy.
Example
Compare tax liabilities
under both regimes for
clarity.

6. TDS/TCS Compliance
1 TDS
Tax deducted at source by payer before payment.
2 TCS
Tax collected at source by seller during sale.
3 Compliance
Timely deposit and return filing (Forms 26Q, 27EQ).
4 Risks
Penalties, interest, and prosecution for non-compliance.

7. Services Offered
Tax Planning & Consultancy
Legal strategies to minimize tax liability.
Book Keeping, Accounting, Return Filing
Accurate, timely Income Tax Return submissions.
TDS/TCS, Advance Tax Compliance
Complete regulatory adherence and assistance.
Internal Audits & Tax Audit
Financial reviews and advance tax calculations on deadlines.

8. Advance Tax: Meaning, Benefits, and Penalties
What is Advance Tax? Advance tax is the payment of income tax in installments throughout the financial year instead of a lump
sum at the end. It is also called "pay-as-you-earn" tax and is applicable when your tax liability exceeds a specified limit.
Benefits of Paying Advance Tax
• Prevents lump sum payment burden at year-end
• Helps in better financial planning and cash flow management
• Avoids interest and penalties on late payment of tax
• Easy compliance with tax laws and reduces chances of tax evasion notices
Penalties for Non-Payment or Late Payment
• Interest under Section 234B and 234C for default or late payment
• Penalties and possible prosecution for willful defaulters
• Increased scrutiny and potential legal consequences

9. Important Due Dates & Penalties for Income Tax Filing
Due Dates for Filing Income
Tax Return (ITR)
• 31st July - For individuals and non-
audit cases for the financial year
• 30th September - For taxpayers
requiring tax audit under section
44AB
• 30th November - For transfer
pricing cases
Due Date for Submitting Tax
Audit Report
30th September of the assessment
year
Penalties for Late Filing or
Non-Submission
• Late filing fee under Section 234F:
Up to INR 10,000 if filed after due
date but before 31st December;
INR 5,000 if filed before due date
but after due date for other
returns.
• Interest on tax due under Section
234A for delay in filing returns.
• Penalty under Section 271B for
failing to get accounts audited: INR
1,00,000 or 0.5% of turnover,
whichever is less.
• Prosecution and higher penalties
under serious non-compliance.

10. Categories and Types of Clients We Serve
Individual Taxpayers
Employees, freelancers, and
professionals seeking personal
income tax assistance.
Small and Medium
Enterprises (SMEs)
Businesses requiring help with
tax planning, compliance, and
audit services.
Corporates and Large
Businesses
Corporations needing
comprehensive tax consulting,
compliance, and strategic
planning.
Non-Profit Organizations
Charitable entities seeking guidance on tax
exemptions and regulatory compliance.
Startups and Entrepreneurs
New businesses looking for assistance in structuring
and tax-efficient growth.

11. Clients We Would Love to Serve
• Individual Taxpayers (Employees, Freelancers, Professionals)
• Small and Medium Enterprises (SMEs)
• Corporates and Large Businesses
• Non-Profit Organizations
• Startups and Entrepreneurs

12. Partnering for Success
Shubham Singhania, your trusted tax partner
Direct Tax Consultant.
Mangalam Building
24 Hemanta Basu Sarani
Block-A, 4th
Floor, Room No. 407
Kolkata - 700001