Kalpak, a software developer, has been managing his own taxes after learning essential ITR filing skills from a friend working in finance for several years. He appreciates the government’s efforts in simplifying tax filing for salaried individuals and making the process manageable.

Kalpak also keeps himself informed about annual changes in tax slabs. However, his financial situation has become complex due to income from various sources. And now he is increasingly feeling the need to consult a CA to manage his taxes. But he is in a dilemma – whether to approach the tax expert or not?

It is the time of the year when, like Kalpak, many of us feel the same dilemma.

The deadline for submitting investment proof to employers for FY 2023-24 is near. At this time, many taxpayers rush to make tax-saving investments and file taxes at the last minute. Then they swear to do it better the next year with the assistance of a Chartered Accountant (CA) or a professional tax advisor.

However, one confusion that is always there in minds of a large number of taxpayers, especially salaried employees, is whether to consult a CA or file taxes on their own. To find the right answer to this question, one should first identify the need for professional assistance.

You may need professional help for ITR filing:

• When you have salary money and also additional sources of income like a startup, or overseas investments
• When you have various sources of income, such as capital gains, rental property, etc. tied up in tax complications or income tax notices.
• When you don’t have the time and you are struggling with tax computation.
• When you have business income.
• When you have sold a property and made some profit in transactions.

Finding the right approach to handling your taxes depends on your own situation. Sometimes, doing it yourself (DIY) works well, but other times, it’s better to get help from a Chartered Accountant (CA). It’s all about what fits best for you.

If your income sources qualify for certain tax exemptions and deductions that you may not be aware of, or if you aren’t well-informed about the difference between the old vs new tax regime, then a CA can help you save on taxes by providing proper information and completing necessary filings before the due date.

There are simple tax systems that make DIY filing easy, but when things get more complicated, like dealing with investments or business income, having a CA’s expertise can be valuable. Knowing when to seek their help and when you can manage on your own is key.

Also Read: ITR Filing Last Date 2024

ITR Filing Considerations

• If all income, including salary, interest, bank savings and fixed deposit accounts, appears on Form 16 and you understand tax deductions, you can file your own income tax returns.
• If you have other taxable income categories like property gains, frequent mutual fund and stock buying and selling or job changes with Form 16s from two employers, it’s advisable to consult a CA unless you are a tax expert.
• Tax laws are subject to modifications through annual budgets and judicial decisions also impact tax interpretations. Staying updated with these changes can be challenging for individuals, necessitating expert guidance to navigate effectively.
• Many individuals accustomed to Tax Deductions at Source (TDS) from their salaries may overlook the concept of advance tax. Understanding these timelines and obligations is crucial when certain income thresholds are met to avoid penalties and interest charges.
• Many people are unfamiliar with advance tax because they are accustomed to having tax deducted at the source (TDS) from their salaries. As a result, when it comes to capital gains tax, they typically pay it (including penal interest) when they file their forms in July, instead of on the due date immediately after the asset sale.
• Advance tax falls due four times per financial year: 15th September, 15th December, and 15th March. If taxpayers do not pay the advance tax according to this timetable, they will incur a monthly interest charge of 1%.

Online ITR Filing Assistance

If you’re looking for help with your ITR online, there are plenty of choices out there. While it is convenient to use these platforms, you need to be careful. Different people have had different experiences, so it’s important to check if the people helping you are qualified and trusted.

Prioritizing personalized support is the best approach. Before you start using any online tools, make sure you do your homework and understand everything about taxes.