Bulk tax filing/Corporate tax planning

Bulk tax filing/Corporate tax planning

All eligible employers and their employees assessed to tax are applicable to Bulk tax filing return. The scheme is optional and provides an additional mode of furnishing of returns of income by persons deriving income from salaries. Any tax professional who wishes to file multiple Income tax Returns from a single place within minutes. All eligible employers and their eligible employees the scheme for Bulk Filing of Returns by salaried employees applicable and assessed in the cities Ahmedabad, Bangalore, Baroda, Bhopal, Chandigarh, Chennai, Delhi, Gandhinagar, Hyderabad, Jaipur, Jabalpur, Kolkata, Mumbai, Nagpur, Pune and Thane.

Steps For Eligible Employers to File Income Tax Returns:

An eligible employer will get the duly signed and verified returns of Income from the eligible employees assessed to tax at any of the specified city.

The employer will copy it correctly and complete the information contained in the returns of income using the software to generate a bulk return on a specified computer readable media.

Check list of Documents for Filing of Returns:

  1. Form 16
  2. Interest Certificate from banks and post office
  3. Form 16A, Form 16B and Form 16C.
  4. Form 26AS
  5. Tax saving investment proofs
  6. Documentary proofs to claim deduction under section 80 D to 80U
  7. Home loan statement from bank/NBFC
  8. Capital Gains
  9. Pre-validation of bank account for ECS return
  10. Aadhar Card
  11. Collect details of investment in unlisted shares
  12. Collect bank account details
  13. Update bank and post office savings account passbook, PPF account passbook.
  14. Salary Slips

Corporate Tax Planning:

Corporate Tax planning is a way of lowering the liabilities on a registered company. Your enterprise can largely reduce its tax burden in a legal way with tax deductions and exemptions provided under the Income tax act, 1961. An enterprise rising its profits means higher liabilities of tax. It is important in such a situation, that they dedicate enough time on tax planning that reduces liabilities. At the time of inflation, with a tax plan, both direct and indirect tax is lessened.  Tax planning means a proper planning of:

  • Expenses
  • Capital Budget
  • Sales and Marketing Cost.

Objective of Corporate Tax Planning:

  1. Minimal Litigation : Between the collector and the payer of tax there is always a friction. It is important that in such situation the compliance regarding tax payment is followed and used properly so that friction is minimum.
  2. Productivity: Channelization of taxable income to various investment plans is the most important objective of tax planning.
  3. Reduction of Tax liability: As per the required laws, by using a proper arrangement of your enterprise working, you can save the maximum amount from payable tax amount.
  4. Healthy Growth of Economy: The growth in an economy depends upon the growth of its citizens. Tax planning estimates generation of white money that is in free flow.
  5. Economic Stability: When the tax planning behind a business is proper, stability is supplemented.

Importance of Corporate Tax Planning:

  1. An assessee is not allowed to claim deduction at time of appeal, if he has not claimed all the deductions and relief before the assessment is completed. If there is no tax planning there are lapses on the part of the assessee and benefit would be the least.
  2. The companies and other allied laws narrow down the scope for tax evasion and tax avoidance techniques, driving a tax payer to a situation where he will be subjected to severe penal consequences, thus tax planning is more reliable.
  3. Activities and programmes which are of public interest and good for a civilised society needs to promoted by the companies. Government provides incentives in the tax law, in order to encourage such activities. Hence a planner has to be well versed with the laws concerning incentives.
  4. The amount of corporate tax also increases with increase in profits and to minimise tax burden, it necessitates the devotion of adequate time on tax planning.
  5. At the time of inflation, with a tax plan, both direct and indirect tax is lessened. It enables companies to make proper expense planning, capital budgeting, sales promotion planning, etc.
  6. In current days of credit congestion and valued money conditions, even a rupee of tax politely saved may be taken as an interest free loan from the government which perhaps, an assessee need not repay.