Chief Differences Between Professional Tax and Income Tax

 

We often confuse with the terms Income Tax and Tax Deducted at Source (TDS) while filing our tax returns. So, before you file your returns keep a tab on certain terms to avoid any sort of confusion.

The Simple Differences between Income Tax and TDS:

1) Income tax is administered on all individuals or corporate for whatever may be the income limit above the tax limit for a particular time frame.

TDS, or rather tax deducted at source, here the tax is deducted at the source of income, just assuming that you have a taxable income.

2) You pay income tax based on your annual income, whereas TDS is deducted at source on a regular basis in the particular year.

3) A taxpayer is required to pay income tax on his total annual income, whereas TDS is can only be regarded as the partial contribution to his total annual income.

4) When it comes to the TDS, the payer deducts the tax and is paid to the Government by the payer on the payee’s behalf. It is expected of the taxpayer to pay the income tax. 

5) Suppose the taxpayer's income is much below the taxable limit and the TDS is still deducted then he can claim the TDS when he files his returns. TDS is particularly deducted from salary income, fixed deposits and so on. 

Conclusion

When the financial year draws to an end your total tax liability is calculated and the number of TDS deducted is subtracted from the total tax liability.

In some cases, the TDS is not applicable especially when the net taxable income is much lower than the taxable limit of Rs 2,50,000 for a person and Rs 3,00,000 for Senior Citizen.

When you file your returns you must ensure that you have taken into account all the TDS deducted and you can claim for the same mentioning the amount.

Suppose you have not received your tax credit statement from your employer or bank then you can file your returns by checking the form 26AS which provides you the required credit information. 

You can seek the help of a Tax consultant in Chennai, or wherever you are based for professional tax registration so that you can file your returns without any problems. Ensure you file your returns in proper time to avoid fines, same goes for professional tax too, that is why you should seek professional help if you are clueless about the proceedings. 

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.