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Compliance and Legal Services
In the Indian landscape of 2026, compliance under the Income Tax Act, 1961 has shifted from manual filings to a highly automated, data-driven environment. For businesses and individuals, "compliance" is no longer just a year-end activity but a continuous monthly and quarterly cycle.
Legal services in this domain focus on two areas: Compliance (staying on the right side of the law) and Litigation (defending your position when disputes arise).
Core Compliance Services
Income Tax Act: Compliance involves the routine administrative tasks required to report income and pay taxes.
- Income Tax Returns (ITR): Annual filing of income, expenses, and taxes paid.
- Individuals/HUF: ITR-1 to ITR-4.
- Companies/LLPs: ITR-5 (Firms/LLPs) and ITR-6 (Companies).
- Tax Audit (Section 44AB): If a business's turnover exceeds ₹1 Crore (or ₹10 Crore if 95% of transactions are digital), a mandatory audit by a Chartered Accountant is required to verify the accuracy of books.
- TDS & TCS Management: TDS (Tax Deducted at Source): Deducting tax before making payments like salary, rent (threshold: ₹50,000/month), or professional fees.
- TCS (Tax Collected at Source): Collecting tax from buyers on specified goods (e.g., scrap, timber, high-value motor vehicles).
- Filings: Quarterly returns (Forms 24Q, 26Q, 27Q) must be filed to report these deductions.
- Advance Tax: Paying tax in installments (June, Sept, Dec, March) if your estimated tax liability for the year exceeds ₹10,000.
Legal & Litigation Services
When the Income Tax Department disagrees with your filings, "Legal Services" come into play to resolve the dispute.
- Scrutiny & Assessment Support: Representing the taxpayer when an Assessing Officer (AO) picks a return for a detailed check (Notice u/s 143(2)).
- Responding to Notices: Drafting legal replies to "Defective Return" notices (Section 139(9)) or "Inquiry" notices (Section 142(1)).
- Appeals & Representation: If an assessment order is unfavorable, legal experts represent the client through the hierarchy of appeals:
- CIT (Appeals): The first level of dispute resolution.
- ITAT (Income Tax Appellate Tribunal): The final fact-finding body.
- High Court / Supreme Court: Only for substantial questions of law.
- Rectifications & Refunds: Filing applications under Section 154 to correct apparent mistakes in tax orders or following up on delayed refunds
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