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 your income 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 income of the assessees must 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 auditor 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, an audit firm in Chennai or other cities of the country has numerous services to offer besides the more traditional services. No wonder, the need for a chartered accountant has been on the rise.

How do Auditing Firms Get Audited?

Wikipedia describes an audit as, An audit is a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements, as well as non-financial disclosures, present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. 

Auditors have to assess a set of company accounts to find out if they are the right representation of the company's affairs on the accounts date. The audit provides the comfort or assurance to the users of the accounts that an auditor or an independent third party has carefully examined the accounts and agrees with them.

How do Auditing Firms get audited?

In any big Audit firm, for example, an audit firm in Chennai, you will find there are "Audit Partners" and there is also a tax and advisorydivision. The tax and advisory along with all other non-audit lines of service are formed under the paradigm of Limited Liability Company (or equivalent). The audit practice will then be called "Partnership".

This stems from an age-old policy that Auditors, Lawyers, and Accountants should not have limited liability for providing wrong advice or assurance to third parties.

The current times dictates that most country legislation will still require an audit firm to be in a partnership with the audit partners. As it is a partnership you do not require a legal document to be audited.The partners, however, are required to provide for their personal income tax and are audited by the tax authority (IRA/IRS) personally.

Large audit firms get audited by the licensor of the firm's brand name such as individual KPMG, PWC, EY, and Deloitte have to follow some specific financial guidelines internally so that they can stick to the brand name, and hence these KPIs are under the scanner and monitored closely. However, it is in no way comes near to a full audit that some of the private companies face.

VRamaratnam & Company are distinguished auditors in Chennai that meet up to applicable reporting standards with perseverance. There are a number of by-products of the audit process such as finding out the internal management issues and other important insights that can cater to the present and future challenges too.

While some of the rules of the game stand transformed as of today some of the basic fundamentals remain unchanged.  The investor must add accuracy, completeness, and fair presentation of information in the financial statements and disclosures. The auditing process helps maintain the confidence of both the company and the financial system too. For the charteredaccountants in Chennai and the other cities of the country, the main challenge is keeping up with a fast-evolving corporate reporting environment.

How do you Start a Tech Startup? What Steps Should be Taken to Start a Tech Startup

Trying to set up a startup and leave your day job? It is time you gave it a serious thought and mull over the pros and cons. set the start rolling with these tips.

1. Do a thorough market research

Yes, conducting a thorough research should be on the anvil to find out whether your idea is worth all the efforts you put in. Write it all down and keep it in front of you. You will be more aware of the problems and how can you solve the same.  

2. Secure intellectual property

Securing an Intellectual property (IP) signifies that you can own the rights to a created product. Examples are patents, copyright, and trademarks. 

3. Finalize the branding

Branding is not just choosing a name but it represents you and your ideology. Do secure your website domain name and other marketing materials, while you do so. 

4. Incorporation

 Incorporating is the process of transforming your business into a legal entity and deciding how it will be structured. Usually, start-ups are transformed into an LLC, a C corporation, or an S corporation. Both LLCs and S corporations enjoy tax exemptions, while when it comes to C Corporation it is considered a taxable entity.

5. Choosing a co-founder

A proper support is an ideal way to execute your execution. Investors examine the funding team first before considering the idea when going for an investment. So finding the right co-founder is really important. 

6. Pick a workplace

Picking up the right workplace is more important than most people give credit for.  Different types of work environment suit different types of working styles best. While some founders choose to work from home right at the start to save money, while others choose to rent at a co working space, do whatever suits you best. 

7. Raise capital

 Financial investment is very important for the company.  The right resources prove to be of enormous help, consider your capital investments and understand them before you take it to the next level. Decide on the amount of money you want to raise and how exactly it will impact your startup. Your next step will be to decide how much to raise and how will you raise the same, whether it will be through crowd funding, get it from an angel 9investor or via a traditional VC firm, then go for the kill. 

This list may not prove to be all-inclusive, just a few ideas around which you can work around, and your mode of work will be much individualized and you should consider the ones which suits you and your team and of course you can add a few of your own, when it comes to starting a start-up there is no one size fits all guideline. Get help from business consultants in Chennai or chartered accountants in Chennai or anywhere else for that matter to set the ball rolling.