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  In Budget 2020, Nirmala Sitharaman, the finance minister, announced a new tax system with more tax slabs and lower tax rates. The majority of taxpayers have long requested this, but there is a catch: all deductions and exemptions from the previous tax system must be removed. The finance minister added to the confusion by giving taxpayers the option of choosing between the new regime and the existing one, leaving it up to them to make their own decision. Due to the combined factors of all these variables, tax rules have become more complicated rather than simpler. And if you’re wondering how to decide whether to choose the new or the old tax regime, this blog provides the information you need. We look at the new regime carefully, weigh its advantages, and compare it with the current tax structure. So, let’s begin. More tax slabs and a lower tax rate, but no option to lower taxes under the new tax regime. The new tax system differs from the previous one in two ways. One, under the ...

  Financial planning for a business in India is key to its long-term viability. Without a strategy in place, it’s easy for a business to get derailed or lose sight of the bigger picture. By focusing on key assets, evaluating their expected cash flows, and mapping out future opportunities, financial planning helps a business see where it needs to grow or cut costs to continue generating future returns without breaking the bank. It also provides an overview of all sources of income, showing how much cash they will bring in and what they will cost. Financial planning also helps a business set goals and identify which risks are most likely to impact them. What is Financial Planning? Financial planning is the process by which a business offers a framework to achieve its objectives in a planned and organized manner. Financial analysis and planning set the company in the direction of the best use of its finances. It is the process of evaluating the capital needed for a business and figuri...

Filing income tax returns is of utmost importance as you can avoid added interest, and penalties, and most importantly safeguard credit if you need it in the future (in this case loans) and owing to any foreign assets if any. Accounting and tax compliance companies always recommend that you need to be vigilant in filing the tax years every year as a responsible taxpayer. However, during filing our income tax returns, one can unknowingly make errors that can include mentioning the wrong account number, spelling mistakes of name, errors in declaring interest income and claiming the wrong deduction. It can also happen due to some unforeseen emergency in your house that you have forgotten to pay the taxes. However, there is no reason to worry as now there is a provision to correct your income tax return if you have made an error in it. The good news is that the current income tax laws by the Indian government allow you to correct the returns if you have made any mistake. Under sec...

  People usually end up making mistakes while filing their income tax returns (ITR). However, there is no need to worry as the tax department has made few provisions to allow taxpayers to rectify any mistakes or errors made during filing ITR. Errors while filing an ITR are best avoided however people often end up committing unintentional errors during the filing process. Most errors occur when individuals try filing a tax return in a rush, just before the deadline. This is the major reason why tax specialists usually recommend people file their returns well in advance. However, what if you realize you have made an error after you have filed your income tax? You may be worried that you made an error, however, there is nothing to worry about it. The tax department has dealt with this type of situation earlier and has solutions for you. There is a provision that allows taxpayers to correct any errors made while filing ITR. There are a few steps that you can follow. According to Indian...

  The New Year brings with it new hopes, new aspirations, new habits, and also new goals. But are these only limited to personal and career accomplishments? One of the major goals to achieve every New Year is probably the financial goal. Why ? It is because unforeseen expenditures are a part and parcel of one’s life, even though it is quite difficult to admit it. However, you can always be prepared if not avoid it. One of the smart ways of managing your finances is always being prepared for it one step ahead so that you can enjoy the fruit of your financial planning. At Digilekha Consultancy, one of the premier  Tax Firms in Pune  we give you some insights on the same. Set a Budget Plan - Having an idea of your budget and sticking to it is the first and foremost step in deciding the financial goal for 2022. Creating a budget helps you identify your needs and wants and set priorities. It also helps you make mindful decisions about adjusting your finances and setting them i...

  Nothing is certain except Death and Taxes. A person can condemn his tax liability, even after his/her death. The legal heir has to pay tax liability and file the Income Tax Return A legal heir of the deceased person has to file the income tax return of the deceased person. He needs to gather following documents first 1.        PAN of Deceased and all legal heirs. 2.        Death certificate of deceased. 3.        Letter of Indemnity (on Stamp paper) 4.        Legal Heir Affidavit. (On Stamp paper) 5.        Registered will of the deceased OR any of the following documents as a proof of legal heir.   a)              The legal heir certificate issued by the court of law. b)              The leg...