Benefits of tax preparation services
Written by Nitisha Bazard Dt. January 5th, 2023
Tax preparation implies the process of tax return by an individual of an organisation; tax could be applicable on income tax, excise duty, etc. It was a very cumbersome process so it requires careful perusal of the financial activity.
In developed countries like India now starting outsourcing their work of tax preparation. Services availed from the foreign countries at very lower prices comparatively to the home country. Same work can be done without taking compromise at almost half the tax preparation services in an efficient manner to the foreign clients.
Process of tax preparation
- Scanned documents
The procedure begins when client send scanned documents, which is relevant for the tax preparation.
When data entered into the chosen software, the tax professional audit the tax return by which we can check all the information has been entered precisely. Audit could be done to avoid wrong computation of tax return.
When tax return is audited they received green signal from the tax professional and send computation to client for approval , if client raise any issue then it should be directly comment. The client send request as per the requirement.
- Final submission
After reviewing and finalizing by the client, the same is corrected and updates as per the client demand. Final copy send to the client for filling the relevant authority.
Documents requires for tax preparation
- Permanent account number(PAN)
- Aadhaar number
- Bank information and details of the assessee
- Tax deduction at source documents(form 16, form 16A, form 26AS)
- Travel bills
- Rental agreements
- Bank book certificate
Benefits of tax preparation services for your business
- Risk free services
There are lots of benefits of hiring tax professional who helps to get a risk free consultancy. Tax advisor are responsible for preparing the statement of tax return and increasing profitability. Tax advisor should recover the risk of legal consequences by taking preventing measures.
- Accuracy is the key advantage
There are various accounts, transactions, and statements deals with the variety of incomes and expenses. It was very difficult for an individual to track the dimensions which contribute the chances of tempered accuracy.
- Audit assistance
1% of the total taxpayer are audited IRS every year and business accounts become a part of audit. Whenever tax returns are prepare they need more careful attention.
- Deduction in tax
Tax professionals up-to-date all tax reforms and tax changes, they can also help in save money by tax avoidance.
- Reduced computation errors
Computation errors can makes huge consequences, tax professionals are trained and they handling numbers and transaction. They also use the tax calculating software which assure the double checking of the working.
Who requires tax preparation services?
- Hindu undivided family
- It could be taxed separately from its members
- They have their own PAN and file tax returns independent of its members
- HUF save tax by creating a family unit and pooling in asset to form a HUF
- Co-operative society
They are association of persons who joined voluntarily joined together to achieve a common economic end through the formation of a democratically controlled organisation which helps in equitable distribution to the capital requirement.
- Section 8 company
- It the promoting commerce, arts, science, education to protect the environment which is only the object of the company
- No dividend is paid according to the company act, 2013
- Limited liability partnership
LLP is an alternative corporative business entity which provide flexibility to the members of the organization. In a partnership firm introduced in India in limited liability partnership act,2008.
- Sole proprietorship
- When one person own all the assets of the business
- No legal formalities for the sole proprietorship other than the licensing and registration of the business
- The owner report income or loss of the business along with the personal income tax return.
Pros of professional tax preparation
Fee may be deductable in some cases
It should be essential to aware the possibility that the professional tax preparation fee can be deductable from your income tax return if requirement is specified. The price for tax preparation is a miscellaneous deduction in which we can report IRS tax Form 1040 schedule A.