What are Direct Taxes?
Direct taxes are those that are directly paid to the
government by individuals, firms, or organizations on whom it
is imposed. It cannot be shifted to others. The most common
types are Income Tax, Corporate Tax, and Capital Gains Tax.
Types of Direct Taxes in India
-
Income Tax
Paid by individuals, HUFs,
AOPs, BOIs, etc.
Based on the annual income of the
taxpayer.
Slab-based taxation for individuals (old and
new regime options).
-
Corporate Tax
Paid by companies on
their net profit.
Domestic company: 22% or 25%
(depending on turnover) + surcharge + cess.
Foreign
company: 40% + applicable surcharge and cess.
-
Minimum Alternate Tax (MAT)
Ensures
companies with zero taxable income still pay a minimum tax
(15% on book profit).
-
Capital Gains Tax
On profit from sale
of capital assets like land, shares, gold, etc.
Short-Term
Capital Gain (STCG) and Long-Term Capital Gain (LTCG).
-
Dividend Distribution Tax (Now Removed)
Earlier paid by companies. Now dividend is taxed in
the hands of shareholders.
-
Securities Transaction Tax (STT)
Tax
on trading in securities (like shares, derivatives, etc.).
Services Covered Under Direct Tax Services
| Service |
Description |
| PAN & TAN Registration |
Required for filing tax returns and TDS compliances |
| Income Tax Return (ITR) Filing |
Filing of ITRs for individuals, firms, LLPs, companies
|
| Tax Audit Services |
For businesses with turnover above prescribed limits
(under Sec 44AB)
|
| Advance Tax & Self-Assessment Tax Assistance |
Calculation and payment support |
| TDS Compliance |
TDS deduction, return filing (Form 24Q, 26Q), issuance of
Form 16/16A
|
| Tax Planning & Advisory |
Legal ways to minimize tax burden and optimize tax
efficiency
|
| Transfer Pricing Compliance |
Applicable for international transactions |
| Representation Services |
Before Income Tax Authorities for scrutiny, reassessment,
appeal
|
| Handling Notices/Assessment |
Responding to 143(1), 142(1), 148 notices, etc. |
| Form 15CA/CB Filing |
For remittances outside India |
| Capital Gains Calculation |
Especially for property and share sales |
| Rectification & Refund Claims |
Filing rectification u/s 154, tracking refund status
|
Who Needs Direct Tax Services?
| Category |
Tax Obligation |
| Salaried Individuals |
Income Tax Return (ITR-1/2), TDS reconciliation |
| Freelancers & Professionals |
Income Tax (ITR-3/4), GST (if applicable) |
| Businesses/Companies |
ITR-6, Tax Audit, TDS, MAT, Advance Tax |
| NRIs |
Global income disclosures, DTAA benefits, capital gains
|
| Trusts & NGOs |
ITR-7, registration under 12A & 80G |
Important Forms in Direct Tax Compliance
| Form |
Purpose |
| ITR-1 to ITR-7 |
Return filing for different categories |
| Form 26 AS |
TDS/TCS summary for a PAN |
| Form 16 / 16A |
TDS certificates from employers and others |
| Form 15CA/CB |
Remittances outside India |
| Form 3CD |
Tax audit report |
| Form 10E |
Relief under Section 89(1) for salary arrears |
Important Due Dates
| Compliance |
Due Date |
| ITR Filing (Individuals) |
31st July of Assessment Year |
| ITR Filing (Audit Cases) |
31st October of Assessment Year |
| TDS Payment |
7th of next month |
| TDS Return Filing |
Quarterly (31st July, 31st Oct, 31st Jan, 31st May) |
| Advance Tax Installments |
15th June, 15th Sept, 15th Dec, 15th March |
Penalties for Non-Compliance
| Default |
Penalty |
| Late ITR Filing |
₹1,000 to ₹5,000 under Section 234F |
| TDS Non-filing |
₹200 per day under Section 234E |
| Underreporting of Income |
50%-200% of tax due |
| Misreporting |
₹10,000+ depending on case |
| Non-payment of Advance Tax |
Interest under Sections 234B and 234C |
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