Well this question can be answered with the help of cost-benefit analysis
If the amount paid for filing of tax return is less than the amount of tax saved, then it is always beneficial to go with the experts.
Example (Cost-benefit Analysis)
Fee for ITR Filing: Rs. 750/- to Rs. 5,000/-
Amount of tax saved: Rs. 2,000 to Rs. 1,00,000/-
One must take the help of a tax expert if there is any possibility of saving money by reducing the tax burden.
Example (How it works)
Understanding of all the facts and figures and detailed knowledge of the law helps in reducing tax liability, legitimately.
Let us understand this with the help of some examples
We are taking an example of Mr. X and Mrs. X
Mr. X has a salary income for Rs. 12,40,000/-
Mr. X has some interest income from his Saving bank account for Rs. 2,48,000/-
Mr. X has interest income from Fixed Deposit for Rs. 1,20,400/-
So, the total income of Mr. X comes out to be Rs. 16,08,400/-
Here Mr. X is liable to pay tax on Rs. 16,08,400/-
Mrs. X has also salary income for Rs. 3,50,000/-
Mrs. X has interest income from saving bank for Rs. 25,400/-
Total Income of Mrs. X comes out to be 3,75,400/-
Mr. X has to pay tax @ 30% on the income above Rs. 10,00,000/-
Now here comes the Magic of Money Saving: If Mr. X gifts his Fixed Deposits to his wife, Mrs. X then the interest income on FD will be taxable in the hands of his wife.
Mrs. X has to pay tax @ 5% on her income.
So in case, the Fixed Deposit is transferred to the wife, the final savings will be 1,20,400/- * 25%: Rs. 30,100/-
Filing Income Tax Return is online and very simple. But taking the help of tax expert has the following benefits:-
- To Save Tax
- To avoid interest and penalty
- To know about future tax planning
- To avoid future tax issues.
In lots of cases, we have seen that taxpayers have saved thousands of Rupees by just taking simple advice from tax experts. In case you are willing to save money, connect with Us.