How does a CA help in tax planning?
By gkkedia Dt. May 1st, 2020
At first, what do we understand with the term tax planning?
Tax Planning is the process of practically application of lncome Tax Act, 1961 provision. In other words, we can say that Tax planning is the process of examination of person’s financial condition in the most significant way. So that, any person could take the benefit from those provisions. Tax planning neither consider as tax avoidance nor as tax evasion. Tax planning is efficient/powerful tool of implementing provision which within the preview of taxation law. All the provision for providing some tax benefit to any person is given under the CHAPTER-VI of Income tax act 1961.
There are different types of Tax Planning in India which is mention below:-
- Short term Income Tax Planning
- Long term Income Tax Planning
- Purposive Income Tax Planning
- Permissive Income Tax Planning
Now come to the point, how a CA can help in tax planning?
A Chartered Accountant is not just the name of degree, the person who possessed this degree is an expert in various
field for instance:- Finance, Taxation, Legal , Management, etc. Nobody in this country is as efficient as Chartered Accountant with respect to Tax Planning. If we talk about the above mention Tax planning Chartered Accountant is the most intellectual person to give advice to an individual and corporate sector. The Chartered Accountant help in various ways such as assisting them taking LIC, Medical Policy, Investment in mutual fund, In acquiring share of profit making companies
G. K. Kedia & Co. is one of the top 10 Tax Planner Chartered Accountants firm in India:-
At G. K. Kedia & Co. we make sure that you get the best income Tax Consultancy services in India. Our Firm is guided and directed by Mr. Gopal Kumar Kedia ji who is former officer of Income Tax Appellant Tribunal. He also provides his precious views upon Income Tax Laws on various News Channels of India. By using his knowledge G.K. Kedia & Co. Chartered Accountants Helps our clients in best possible way. Our Mentor (Mr. Gopal Kumar Kedia) always said that “ An Individual can win only a game but as a Team we can win Championships”.
Various Specific roles of Chartered Accountants :-
- Accounting and Auditing
Accounting and audit have a pivotal role to play in the financial record keeping process of any business though their roles are different in their focus. While accounting translates to a much wider field, encompassing everything from the organization to the management of the flow of money through the company, auditing is more of a specialized service.
Auditing is a part of the accounting world. It is an examination of accounting and financial records that is undertaken independently. This is done to determine if the company or the business undertaking has confirmed its operations to the laws and the generally accepted accounting principles.
- Management Consultancy
We are living in very dynamic environment. It contains various factors such as legal, economical, political, social, structural, etc. To cope with the changes in environment business needs to improve its business process continuously.
To improve the business process there is requirement of skilful, intelligent, intellectual people, who possesses a sense to see that what could happen in near futures which are related to any person business process. Chartered Accountant can be considered as an asset because a CA attains all the required skill which is necessary for business process improvement. CA can create fit between present scenario and future prospective of business. Hence, Management consultancy services are best suited business for an CA Firms.
- Fair valuation of assets and liabilities
While preparing for India’s one of the toughest course (Chartered Accountant) every individual went with all the Accounting Standards and Indian Accounting Standards laid down by ICAI. During training and after post qualification we practically implement our knowledge which we grasp during the preparation of exams. Ind AS – 113 deals with the Fair Valuation of assets and liabilities of an entity or enterprise or company. A Chartered Accountant is well versed the compliance of Ind AS -113, Hence a CA could also help in fair valuation of assets and liabilities.
- Registration of companies, LLP’s & firms
A Chartered Accountant thoroughly studied the provision of Companies Act 2013, LLP’s Act 2008, Partnership Act 1932 and practically applied these provision. One who need take registration in these above mention Act, Chartered accountant assist them in compliance of all provisions mention in the acts. Therefore if anyone who wants take expert advice relating to the fulfillment of compliances of act, a Chartered Accountant will be best suited for.
- Due diligence & Investigation of fraud
Due diligence is a term used in relation to corporate restructuring. Corporate restructuring includes internal reconstruction, amalgamations, merger, joint venture, etc. However, Corporate restructuring involving more than one party should be planned properly. Thus, in such cases, due diligence is conducted. Due diligence review is performed to check whether it is feasible and desirable to acquire / merge the unit. As far as Investigation of fraud are concerned we have standard on auditing -240 (Auditors responsibility related to fraud in an audit of financial statements). Therefore advice from Chartered Accountant would be beneficial if they want to make successful execution of their plan. In this a chartered accountant can also be considered as an important tool for business.
- Role in lifting-up the start-ups.
Since the concept of start-ups was emerged in India, Our finance ministry comes up with the new provision in law so that they can see bird eye view of what is going in start-ups. Finance ministry regularly amending the law to provide smooth functioning of start-ups. Now comes to the role of Chartered Accountant, by updating the knowledge of laws related to start-ups CA can help them to preparing financial projection so that they can be financed by the banks and Investors. CA can lift-up the start-ups by helping in research and development of market conditions, compliance with the laws, strategic thinking, etc.
- Registrations of Society and Trusts
A Chartered Accountant performs a major role in society and trust registration as memorandum of society must be attested by a chartered accountant and other officials. CA also help to compliance with relevant rules and regulation required to get the registration as a society and trust.
- Compliance with all new GST laws
Chartered Accountant will play a huge role in the coming days, what with GST being the talk of the town. Business, big and small, will need the help of their CAs to register their business, create invoices, file returns, revise mismatched returns, claim input tax credit (ITC) and understand the day to day intricacies of this new tax policy.
- Registration of trademark
A trademark is one of the company’s most valuable assets. With the help of trademark a customer differentiate one’s product over others. It helps the entity to create an intangible asset called goodwill. Chartered Accountant helps in 8 ways in registration of trademark (i.e. Visual Representation, Intangible Asset, Protection against infringement and other legal protection, Trademark search, class selection, voluntary, not Compulsory Registration, Validity, and Trademark Symbols).