Tax compliances in India are one of the few compliances that are applicable to every person irrespective of income or occupation. In India, taxes can be primarily divided into two categories i.e., direct taxes and indirect taxes. While the income tax is the principal direct tax law, goods and services tax is the principal indirect tax law. Most of the erstwhile indirect tax laws were subsumed under GST. Other indirect tax laws include customs, VAT (on a few products) etc. Let’s discuss tax compliances in India.

Income Tax Compliances in India

Following are some of the important income tax compliances in India:

1. Income Tax Returns: Income tax returns need to be filed each year depending upon the due date applicable to the taxpayer. 

2. Audits: Income tax audits are applicable to taxpayers crossing the specified turnover threshold limit. The audit report issued by a Chartered Accountant shall be submitted to the income tax department.

3. TDS: In case the assessee is liable to deduct TDS or collect TCS, then the same shall be complied with and deposited to the government. Further, the assessee should also file periodical TDS/TCS returns within the due date.

4. Advance Tax: In case your tax liability during the year exceeds Rs. 10,000, then you are liable to pay advance tax. Advance tax should be paid in installments unless you opt for a presumptive taxation scheme in which case, you can pay advance tax in one go.

Goods and Services Tax Compliances in India

Following are some of the important GST compliances in India:

1. GST Returns: After you obtain GST registration in India, you need to file your regular GST returns monthly or quarterly depending upon the option you choose.

2. GST Refunds: In case you satisfy any of the conditions specified under the GST law, you can apply for a GST refund. You need to file the refund application in GST RFD-01 along with the supporting documents.

3. Annual Return: In case your turnover during the financial year exceeds a specified limit, then you need to file your GST annual return in GSTR-9. It should be filed on or before 31st December following the end of the financial year.

4. Reconciliation Statement: In case your turnover during the financial year exceeds a specified limit, then you need to furnish a self-certified reconciliation statement in Form GSTR-9C. It should be filed on or before 31st December following the end of the financial year.

If you are struggling to comply with taxation laws or want to ensure that your tax compliances are accurate and timely, it is advisable to seek the assistance of an income tax consultant. Above were some of the regular tax compliances in India that you should adhere to. Non-compliance with taxation laws can lead to fines, late fees, penalties, and penal interest. You can seek the services of tax professionals such as income tax consultant to ensure that you don't miss out on any compliance. For more information or to seek professional assistance, contact the ASC Group now!