Income Tax

Income tax in India can be quite complex, primarily due to a combination of frequent policy changes, multiple types of taxes, and compliance requirements.

Tax Audits and Assessments

Tax audit in India verifies a taxpayer’s accounts to ensure income declarations and deductions are accurate. It is mandatory for businesses exceeding specified turnover or individuals with certain income types. Other assessments include scrutiny, reassessment, and income review by the tax department to identify discrepancies and enforce compliance.

TDS and International Taxation

TDS is a mechanism in India where tax is deducted on income like salaries, interest, and professional fees at specified rates before payment. In international taxation, Indian residents with foreign income must comply with Double Taxation Avoidance Agreements (DTAA) to prevent double taxation and follow both Indian and international tax regulations.

ITR filing and Compliance

ITR filing involves choosing the right form, reporting income accurately, claiming deductions, paying taxes on time, and complying with deadlines to avoid penalties.