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“The hardest thing in the world to understand is the income tax.” – Albert Einstein.
Personal tax is the tax you pay on the income you earn and the returns you make from investments. This includes salary from your employer, profits from your business, earnings from rental properties, and gains from investments. It’s a keyway to contribute to public services and government functions, ensuring that your financial contributions are in line with your earnings. Understanding how personal tax works helps you manage your finances more effectively and ensures you’re meeting your obligations.
Understanding personal taxes can be complex, but with the right guidance, it can also be straightforward and manageable. At Mercurius, we are dedicated to helping you understand and meet your tax obligations with ease. Our experienced professionals provide personalized tax services tailored to your unique financial situation. Whether you’re planning for the future, managing your investments, or simply ensuring compliance, we’re here to assist you every step of the way. Let us take the stress out of tax season and help you make informed decisions to optimize your financial health.
Due Dates for Personal Tax
Tax Return Filing Deadline: Returns for income earned from April 1 to March 31 must be filed by July 31 of the following year.
Filing your taxes on time is essential to avoid penalties and interest charges. Our experts at Mercurius provide a comprehensive calendar of important tax deadlines, including dates for filing returns, making tax payments, and submitting any required documents. Our tax consultation services ensure you receive timely reminders and notifications, helping you stay compliant with tax laws and maintain peace of mind.
Expert Guidance for Applicability in Personal Tax
The deciding factor in the amount of tax to be charged on your income is determined by the tax slabs. Tax advisors wisely suggest knowing how much tax you owe and how to optimize your tax liability within the legal framework, whether you fall under the introductory slab rates or benefit from special exemptions. Tax consultants at Mercurius can guide you through the intricacies of tax calculations.
Old and New Tax Regime
The tax slabs and rates in the old and new tax regimes are different. The old regime allows various deductions and exemptions. The new regime offers lower rates of taxes but permits limited deductions and exemptions.
Under the Old Tax Regime Slab Rates:
| Income Slab | Tax Rate |
|---|---|
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | 5% |
| Rs. 5,00,001 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Under New Tax Regime Slab Rates:
| Income Slab | Tax Rate |
|---|---|
| Up to Rs. 3,00,000 | Nil |
| Rs. 3,00,001 to Rs. 7,00,000 | 5% |
| Rs. 7,00,001 to Rs. 10,00,000 | 10% |
| Rs. 10,00,001 to Rs. 12,00,000 | 15% |
| Rs. 12,00,001 to Rs. 15,00,000 | 20% |
| Above Rs. 15,00,000 | 30% |
Advance Tax
As per the Indian Income Tax Act, 1961, Advance tax, also known as “pay-as-you-earn” tax, is a system in which taxpayers are required to pay their tax liability in installments rather than in a lump sum at the end of the fiscal year. Many countries, including India, follow this system.
Here’s a brief overview of advance tax under personal tax in India:
Applicability
Advance tax is applicable to individuals, Hindu Undivided Families (HUFs), including salaried employees, self-employed professionals, freelancers, and businesses, whose tax liability after deducting TDS (Tax Deducted at Source) exceeds Rs. 10,000 in a financial year.
Due Dates
Advance tax is calculated based on income earned from April to March and is paid in four installments throughout the financial year. The payments are typically due on specific dates, spread across the year. Failure to meet these deadlines may result in interest charges and penalties.
Calculation
Professional tax consultation is required to estimate the total income for the financial year and calculate the tax liability. Income tax services ensure timely payment of advance tax in installments as per the prescribed schedule.
Installments
Advance tax is paid in four installments as follows:
- On or before June 15: 15% of the total advance tax liability.
- On or before September 15: 45% of the total advance tax liability less the amount paid in the first installment.
- On or before December 15: 75% of the total advance tax liability less the amount paid in the first and second installments.
- On or before March 15: 100% of the total advance tax liability less the amounts paid in the earlier installments.
Payment Modes
Advance tax can be paid online, such as through debit cards for selected banks, internet banking, or at designated bank branches. Our online tax consultants can provide professional guidance for all payment modes of advance tax.
Penalties
Failure to pay advance tax or underestimating the advance tax liability can attract interest under Section 234B and Section 234C of the Income Tax Act, 1961.
Applicability
Advance tax is applicable to individuals, Hindu Undivided Families (HUFs), including salaried employees, self-employed professionals, freelancers, and businesses, whose tax liability after deducting TDS (Tax Deducted at Source) exceeds Rs. 10,000 in a financial year.
Due Dates
Advance tax is calculated based on income earned from April to March and is paid in four installments throughout the financial year. The payments are typically due on specific dates, spread across the year. Failure to meet these deadlines may result in interest charges and penalties.
Calculation
Professional tax consultation is required to estimate the total income for the financial year and calculate the tax liability. Income tax services ensure timely payment of advance tax in installments as per the prescribed schedule.
Installments
Advance tax is paid in four installments as follows:
- On or before June 15: 15% of the total advance tax liability.
- On or before September 15: 45% of the total advance tax liability less the amount paid in the first installment.
- On or before December 15: 75% of the total advance tax liability less the amount paid in the first and second installments.
- On or before March 15: 100% of the total advance tax liability less the amounts paid in the earlier installments.
Payment Modes
Advance tax can be paid online, such as through debit cards for selected banks, internet banking, or at designated bank branches. Our online tax consultants can provide professional guidance for all payment modes of advance tax.
Penalties
Failure to pay advance tax or underestimating the advance tax liability can attract interest under Section 234B and Section 234C of the Income Tax Act, 1961.
Heads of Income
Income is classified into different heads for tax purposes, each subject to specific rules and provisions. We will discuss the various heads of income, including salary, house property, business or profession, capital gains, and other sources. Our detailed explanations will help you understand how to categorize your income correctly and report it accurately in your tax return. Whether you’re a salaried employee, a self-employed individual, or a business owner, we will provide guidance tailored to your unique income sources and circumstances.
| Head of Income | Description |
|---|---|
| Income from Salary | Earnings from employment, including salary, wages, bonus, commissions, and allowances. |
| Income from House Property | Income generated from renting out property, such as residential, commercial buildings. |
| Business/Profession | Profits derived from self-employment, business or professional activities, including services or goods sold. |
| Capital Gains | Profits or losses from the sale or transfer of capital assets, such as stocks, real estate, or bonds or any other investments. |
| Other sources(Income) | Additional income sources like dividends, interest, gifts, lottery winnings, or any other earnings. |
Tax Planning (Exemptions & Deductions): Managing with Expertise
Strategic tax planning is key to minimizing your tax burden and maximizing your savings. Consulting tax services at Mercurius will help you identify eligible exemptions, deductions, and credits available under the tax laws to reduce your taxable income. From investments in tax-saving instruments to claiming expenses and allowances, tax advisory services will enable you to explore various avenues for legally optimizing your tax liability.
Our personalized tax planning strategies consider your financial goals, risk tolerance, and future tax implications, ensuring you make informed decisions that align with your objectives.
Personal Tax Litigations: Careful Handling by Mercurius
We are Income tax consultants in India, experts in handling complex tax disputes and litigations. Our team of tax advisors will keep you informed about potential tax issues and disagreements, helping you navigate through audits, assessments, and appeals effectively. We will discuss common areas of contention, such as interpretation of tax laws, transfer pricing, and international tax matters. With our guidance, you will be equipped to address tax disputes proactively and protect your financial interests.
Why Choose Mercurius for Personal Tax Services?
Expertise
Mercurius's tax consultants are experienced tax professionals who are well-versed in the latest tax laws and regulations. Clients can depend on us for accurate, precise, and up-to-date advice to ensure compliance and optimize their taxes.
Personalized Service
We understand that every individual’s financial requirements are unique. Our services are tailored to match your specific needs and objectives.
Proactive Approach
With tax consulting services at Mercurius, you stay a step ahead of changes in tax legislation, and we proactively advise you on how to manage your tax affairs.
Comprehensive Support
We provide a full range of personal tax services, such as filing tax returns, preparation for tax planning, and dispute resolution.
Client-Centric Focus
Your satisfaction is our priority. We are committed to providing exceptional service and building long-term relationships with our clients.
