Top Reason Why You Must E-File your Taxes on Time - Vramaratnam & Co

The Income Tax Department makes it mandatory for everyone to file income tax return if your gross total income is more than Rs 250,000 in a financial year (before allowing deductions under section 80C to 80U). This limit is extended to Rs 300,000 for senior citizens who are more than 60 years old, but is less than 80 years old) and the amount increases to 500,000 for super-senior citizens ( that is more than 80 years old). However, you can still file your income tax returns even if your income is less than the maximum exemption limit. 

Still looking for reasons to file yourincome tax returns? Check out the below reasons,

1 ) Carry forward of loss

When the individual or a firm incurs business losses such as speculative and non-speculative or capital losses (both short-term and long-term) it cannot be shown as an exemption to extend and carry forward last year’s losses. However, a person can benefit only if he/she files one’s income tax return.

2) Income tax refund

Tax return filing is not merely fulfilling one’s duty towards the nation but to claim an income tax refund. 

3) Avoiding penalty

Under the section 234F of the Income-Tax Act, if a person is unable to file his returns by July 31 then he is supposed to pay a fee of Rs 5000 if the return is furnished before 31st December. The fee would increase to Rs 10,000 if it is filed after 31st December. However, if the total income of the person does not cross the Rs 5 lakh marker then the money should not cross Rs 1000.

4) Legal sanction to your income

The assessees whose income is supposed to be audited according to the IT Act, the date of filing the return would be 30th September.  If you regularly file your returns you will give a stamp of legal sanction to your income even if you are not supposed to pay the taxes for the year.

5) Your loan would be easily processed

You need to submit your income tax returns to process different types of loans such as home loans, educational loans and so on. You need to file your returns to processes any visa. Even credit card companies require your proof of tax returns before providing a card.

6) Registration of immovable property

A few states demand your income-tax return of the last three years for registering immovable property. Also, a legal sanction to income taxable or otherwise helps you to prepare for the property owned.

Filing income tax return helps you perform responsibilities as a citizen and also ensures smooth governance. Also, it shields you from the hassles of being served a show-cause notice from the I-T department. Tax consultantsin Chennai or consultants in other cities of the country help you return files on time.

What are the Important Services of a Chartered Accountant besides the Traditional Services

The accountancy profession has seen a rapid growth in the recent times, it is mainly because of the change in economic growth. The important types of functions performed by the various CA firms in Chennai  and other places are the following,

Accountancy
Accountancy means having writing up of accounts and also preparing financial statements. It includes a wide range of services from simple bookkeeping to other financial analysis.

Auditing
Auditing is one of the most important functions of a Chartered Accountant, as it amalgamates different skills such as specialized training, and judgment. Auditing helps show a true view of the affairs of the organization.

Taxation
A Chartered Accountant has immense experience in accounts and helps prepare the returns for tax purposes, representing assesses before the Income-Tax authorities and offering general advice on taxes to his clients.

Cost Accountancy
A Chartered Accountant helps to determine the varied costs of production and of processes at various levels of operations in manufacturing product and helps in the rendering a service. He/she provides costing information guiding the management and also provides cost control methods that would help the management in providing the right selling prices.

 Company Work
 Chartered Accountants provides the perfect financial structure and the liquidation of limited companies.  They also undertake secretarial and registration work along with the duties of a receiver besides other company work.

Investigation
Chartered Accountants sometimes carry out investigations to find out the financial position of business in matters such as the purchase of a business, reconstructions, and amalgamations. Their services help in providing an efficiency in management or administration etc.

Companies Secretarial Work
In a group of companies, the Secretary is a man who comes with a professional qualification such as chartered accountancy. This helps the professional accountants to offer the right secretarial services to small companies.

Executors and Trustees
A Chartered Accountant often carries out the administration of the estate or settlements and he/she is an appointed executor under a will or trust. Here the chartered accountants need to work in tandem with the lawyers or solicitors. Lawyers too carry out different works to provide them the right assistance in the accounting part of their work.

Management Accounting
In this field too a Chartered Accountant is regarded as invaluable. He/she offers a number of services such as everyday control,  formulation of policies,  performance evaluation and so on.

So, a chartered accountant in chennai or other cities of the country has numerous services to offer besides the more traditional services. No wonder, the need for chartered accountants has been on the rise.

The Chief Benefits of Outsourcing Bookkeeping and other Accounting Services

Most people believe that the only good thing about account outsourcing and bookkeeping is cost-saving. But there are other benefits too, they are as follows, 

1. Outsourcing Accounting Helps in the Sustainable Growth of Firms

Account outsourcing and bookkeeping help improve the core competencies. It can save valuable time which will help you focus more on the firm and bringing in more clients, instead of spending your valuable time on training, hiring, reviewing, managing, firing and so on. So, you can lower your costs to a large extent almost 30-50% or even more.

2. You Cut Costs and Gain Big Projects

When you outsource accounting and bookkeeping, you will have a group of experienced accountants and bookkeepers, so you can maximize on the time you have and not lose out on the big projects because you tend to focus on paltry things that take too much of your time.

3. You Only Pay for the Actual Work Done

Pay exactly for the work done and not a penny more for stuff such as payroll taxes, sick leaves, overhead, vacation, managing, training the works, yes, outsourcing accounting and bookkeeping will help increase your profit margin significantly and you will also end up selling more work. All in all, a total win-win situation.

4. You Improve on both Accounts: Productivity and Work Quality

Many accountants are frazzled with too many errors marring their work, things such as delays and reviews are done on the part of the in-house staff and that means a total waste of money. But, when it comes to the outsourced provider, you are able to keep a closer tab on work quality which will lead to greater productivity. It will also ensure a steady stream of profit.

5. You don’t live in the constant fear of losing out on losing staff

Accounting practice owners can feel the pain of losing staff, all of a sudden. If you aren’t quite what you will call a large firm, you cannot afford to keep staff on the buffer. So, what would you do in such a situation? The only way out is to outsourcing accounting firms and bookkeeping services. You assign an expert at the job who will prove to be more reliable and experienced for the job. The team members and managers are constantly at it, reviewing and each other’s work leading to good quality of work. That done, you won’t have to worry unduly about losing a staff suddenly as now you have a larger team at your call who will take care of any such staff attrition, hence your service delivery won’t be affected.

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6. Quality Services Equals Happy Clients

Outsourcing companies work for not one but numerous companies, as they have staff who is a pro at handling services and work for multiple firms. When you outsource quick book accounting, you get charteredaccountants in Chennai or other parts of the country and the best in the business. Thus, you would be able to make your company shine because of a number of right reasons, hence going one up on your competitors.