Tax Consultant

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Who Is a Tax Consultant?

Tax planning is the part of financial planning that focuses on managing one’s tax liabilities. The main goal of tax planning is to minimise an individual’s or business’ tax liability while staying within legal bounds. And that is what a tax consultant helps with. A tax consultant or a tax planner is a professional who creates personalised strategies that help you save as much of your hard-earned money as possible, legally. They assess your financial goals and situation and make sure these strategies are aligned with your long-term financial plan. Let’s take a look at the role of a tax advisor in more detail. 

Understanding Tax Advisor

There are different types of tax advisors. A tax planner can help individuals and businesses with long and short-term tax planning by suggesting relevant tax-saving investments. On the other hand, a Chartered Accountant (CA) is an expert in accounting, auditing, and tax laws, and can provide a variety of tax advisory services. An online tax advisor also offers many services, like quickly and easily filing one’s taxes. A tax attorney represents clients in tax disputes. Property tax advisors help clients understand and manage their property tax obligations. So the role of a tax advisor is diverse. Different advisors have different specialisations, and each of these professionals can guide you through the complexities of the tax world effectively.

How to become a registered Tax consultant?

One can follow these steps to start a career as a certified tax consultant:

Roles and Responsibilities of a Tax Consultant

Some important responsibilities of a Tax advisor in India are as follows:

Tax Advice and Regulation

Services Provided by Tax Consultant

A professional tax advisor offers a wide variety of tax advisory services such as:

Income Tax Planning – 

A certified tax advisor can help salaried individuals and business owners identify tax-saving opportunities in the form of investments, deductions, and exemptions. They make sure you maximise your tax savings while complying with tax laws.

Tax Filing – 

You can consult with an online tax expert to make the tax filing process much easier. An advisor can make sure that you have the necessary documents for filing and claiming deductions, your filings are accurate to avoid penalties, and identify deductions that you might be eligible for. They can make sure everything is done before the deadline and within the legal framework.

Capital Gains and Losses Tax Consulting – 

When you sell your investments, the profit earned on them is called capital gain. Capital gain is taxable, and its taxability varies from asset to asset. A  trusted tax advisor can clearly explain the implications of short-term and long-term gains so tax can be saved and returns can be optimised. 

Tax Planning – 

A certified tax planner creates short and long-term tax strategies for individuals and businesses. These strategies take full advantage of the many deductions and exemptions in the Income Tax Act, which maximises tax savings and ensures compliance with the Income Tax Department. A tax planner offers personalised solutions based on one’s financial goals and situation. 

For example, rather than suggesting any investment solely for its tax benefits, they will make sure that their recommendations align with your goals while offering tax advantages. This can help you maximise tax savings while also staying focused on realising your financial dreams.

General Tax Advice – 

Tax advisors stay on top of changes in the tax laws, so if there are any changes to tax regulations, an advisor can inform you of the tax implications and recommend appropriate adjustments to your tax strategy.

Goods and Services Tax (GST) Consulting – 

A certified tax specialist helps businesses understand and comply with GST regulations. This includes GST registration, filing of GST returns, and offering guidance on GST audits. They can easily address any GST-related queries or legal disputes to ensure your business remains compliant and avoids any penalties.

faq's

Tax consultants are well-versed in tax regulations and use their knowledge and experience to help you save taxes legally each year. They can also create strategies that optimise your long-term tax savings so that you benefit from the most efficient tax planning. Throughout this process, they ensure full compliance with tax authorities so you can rest easy and stay protected from any legal issues in the future.

Yes! Tax consultancy can be a lucrative career. Tax planning is a huge part of financial planning, and the demand for tax planners and consultants goes up, especially during the filing season. Moreover, a tax consultant can be self-employed, working for a firm, or serving in the government sector. The growth potential in this field is also high as the services provided by tax consultants are always in demand. After all, who doesn’t want to save as much tax as legally possible? Also, as your skills and experience increase, your income will too. 

A tax consultant holds a relevant graduate degree in fields such as banking, accountancy, law, maths, commerce, or other finance-related disciplines. Other than a bachelor’s degree, tax consultants can further specialise by obtaining certifications from institutions like the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI). These certifications showcase the consultant’s expertise and boost their reputation and career prospects.

Yes, you can be a tax consultant without being a CA. A tax consultant must hold a special certificate, such as a Company Secretary (CS) from the Institute of Company Secretaries of India (ICSI) or similar credentials from recognised institutions. 

A tax saving advisor’s fee depends on different factors such as the advisor’s experience and reputation, what the client needs help with, and how complex the situation is. So the cost of hiring a tax advisor varies.