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Personal Taxes

Income from Salary
Income received from an employer, including basic salary, allowances, bonuses, commissions, and perquisites. Standard deductions and exemptions (like HRA, LTA) may apply.

Income from House Property
Covers rental income from owned property or notional income if a second property is self-occupied. Deductions allowed for municipal taxes and home loan interest (Section 24).

Profits and Gains of Business or Profession
Applicable to income earned through business activities, freelancing, or professional services. Expenses directly related to earning such income can be claimed as deductions.

Capital Gains
Income earned from the sale of capital assets such as property, shares, or mutual funds. Gains are categorized as:

Short-Term Capital Gains (STCG)

Long-Term Capital Gains (LTCG)

Exemptions available under Sections 54, 54EC, etc.

5. Income from Other Sources
   Any income not covered under the above heads, such as:

Interest from savings, FDs, or bonds

Dividends

Gifts exceeding ₹50,000

Lottery or betting winnings

Business Taxes

Income from Business or Profession
This head includes profits earned by:

Sole proprietors

Freelancers

Consultants

Professionals (doctors, lawyers, architects, etc.)

Business owners (retail, manufacturing, services)

It covers both speculative and non-speculative income, with provisions for deductions on business expenses, depreciation, rent, salaries, and more.

2. Presumptive Taxation (Section 44AD / 44ADA / 44AE)
   For small businesses and professionals, the Income Tax Act offers simplified taxation under:

Section 44AD – For small businesses (turnover up to ₹2 crore)

Section 44ADA – For professionals (gross receipts up to ₹50 lakh)

Section 44AE – For transporters owning up to 10 goods vehicles

These sections allow taxpayers to pay tax on presumed income without maintaining books of accounts.

Audit Requirements (Section 44AB)
If a business’s turnover exceeds specified limits (currently ₹1 crore for businesses and ₹50 lakh for professionals), a tax audit is mandatory.

Goods and Services Tax (GST)
A comprehensive indirect tax levied on the sale of goods and services. Businesses must register under GST if turnover exceeds the threshold limit and file monthly/quarterly returns.

Tax Deducted at Source (TDS)
Businesses must deduct tax at source when making specified payments (like salaries, contractor fees, rent, professional services) and deposit it with the government.

Advance Tax
Businesses are required to pay tax in installments during the year if the total tax liability exceeds ₹10,000. This helps avoid interest penalties under Sections 234B and 234C.

Bookkeeping

Assets
Resources owned by the business that have monetary value.
Examples: Cash, Bank Balance, Accounts Receivable, Inventory, Equipment, Land, Vehicles.

Liabilities
Obligations the business owes to external parties.
Examples: Loans, Creditors, Outstanding Expenses, GST Payable, Advance Receipts.

Capital / Owner’s Equity
The owner’s claim on the business after all liabilities are settled.
Examples: Owner’s Capital, Retained Earnings, Drawings.

Income / Revenue
Money earned from business operations and other sources.
Examples: Sales, Service Income, Commission Received, Interest Income.

Expenses
Costs incurred to operate the business.
Examples: Rent, Salaries, Office Supplies, Utility Bills, Advertising, Depreciation.

Purchases
Goods bought for resale or raw materials for manufacturing.
Examples: Raw Materials, Stock Purchases, Direct Supplies.

Sales
Revenue generated from selling goods or services.
Examples: Product Sales, Export Sales, Online Sales.

Drawings
Money or assets withdrawn by the owner for personal use, reducing capital.
Example: Cash withdrawn by proprietor, Personal expenses paid from business account.

Direct vs Indirect Expenses
Direct Expenses: Related directly to production or service delivery (e.g., raw materials, wages).

Indirect Expenses: Operational costs not tied to production (e.g., admin expenses, utilities).

Payroll & Salary

Basic Salary
The fixed core component of an employee’s pay. It forms the basis for calculating other salary heads like HRA and PF.
📝 Fully taxable.

House Rent Allowance (HRA)
Allowance to meet rental expenses. A portion may be tax-exempt under Section 10(13A) if the employee lives in rented accommodation.

Dearness Allowance (DA)
A cost-of-living adjustment allowance paid to government and public sector employees.
📝 Fully taxable.

Conveyance Allowance
Given for travel between home and work. Exempt up to a limit (if not covered under new tax regime).

Medical Allowance / Reimbursement
Reimburses medical expenses. Earlier exempt up to ₹15,000 per year (now taxable unless under actual reimbursement structure).

Special Allowance
A flexible component that makes up the balance of the CTC.
📝 Fully taxable.

Bonus / Incentives
Performance-linked pay components, typically paid quarterly or annually.
📝 Fully taxable in the year of receipt.

Provident Fund (PF)
Employer and employee contributions made towards long-term savings.

12% of basic salary is commonly deducted.

Employer contribution is tax-free up to ₹7.5 lakh/year.

Leave Travel Allowance (LTA)
Covers domestic travel expenses while on leave.
📝 Exempt under Section 10(5), subject to conditions.

Professional Tax
A small tax levied by state governments on salaried employees.
📝 Deducted from salary and paid to the state.

Gratuity
A lump sum paid at the time of retirement or after 5 years of continuous service.
📝 Exempt up to ₹20 lakh under Section 10(10).

Outsourcing

Accounting & Bookkeeping Outsourcing
Outsourcing day-to-day accounting tasks such as data entry, ledger management, reconciliation, and financial reporting to qualified professionals.
💡 Ensures accurate records, reduces in-house workload, and offers compliance support.

Payroll Outsourcing
Handling payroll processing, tax calculations, payslip generation, TDS filings, and statutory compliance through a third-party provider.
💡 Minimizes errors, ensures timely salary processing, and adheres to legal requirements.

Taxation & Compliance Outsourcing
Delegating tax return filing, GST compliance, TDS management, and regulatory filings to experts.
💡 Ensures timely and accurate filings, helps avoid penalties.

HR & Recruitment Outsourcing
Outsourcing hiring, onboarding, HR policy development, and employee management functions.
💡 Streamlines workforce management and gives access to HR expertise.

IT Services Outsourcing
Contracting third parties for IT support, software development, cybersecurity, or infrastructure management.
💡 Access to latest technology and skilled resources without heavy investments.

Customer Support Outsourcing
Providing customer service via phone, email, or chat through external agencies.
💡 Enhances customer satisfaction and provides 24/7 support.

Company Secretarial

Company Incorporation
Assistance with registering private/public companies, LLPs, or Section 8 companies, including obtaining DIN, DSC, PAN, TAN, and drafting MoA & AoA.
💡 Ensures legal foundation and smooth business launch.

ROC Compliance & Filings
Filing of statutory forms and returns with the Registrar of Companies (ROC), such as:

Annual Returns (MGT-7, AOC-4)

Director KYC (DIR-3 KYC)

Board Resolutions
💡 Avoids penalties and ensures timely compliance.

Strike Off / Winding Up Services
Filing for voluntary closure or strike-off of a company under Section 248 or guiding through formal liquidation processes.
💡 Ensures legal exit with minimal compliance burden.

Board & General Meetings Management
Organizing Board Meetings, drafting notices, agendas, and minutes, and assisting in conducting Annual General Meetings (AGMs) and Extraordinary General Meetings (EGMs).
💡 Supports transparency and statutory documentation.

Maintenance of Statutory Registers & Records
Keeping up-to-date registers such as Register of Members, Directors, Share Transfers, and Charges, as required under the Companies Act.
💡 Essential for regulatory inspection and due diligence.

Secretarial Audit
Applicable to certain companies, this is a compliance audit conducted by a Company Secretary in Practice.
💡 Helps identify non-compliances and improve governance.

Share Allotment & Transfer
Handling issue of new shares, share certificates, bonus or rights issues, and transfer of shares with proper documentation.
💡 Ensures valid ownership structure and capital integrity.

Director & Shareholder Changes
Support in appointment, resignation, or removal of directors and changes in shareholder structure.
💡 Smooth handling of internal structural changes.