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  A sole trader ship, also known as  Sole proprietorship , is defined as the type of business owned and operated by a single person. The owner and the business entity have no legal distinction. Personal responsibility for sole proprietors is unlimited. Between the owner and the business, there is no legal separation. This means that business creditors and persons with other rights against the owner can seize both the business and personal assets of the owner. Tax Benefits:  The simplicity of a  sole proprietorship  is one of its benefits. You do not file a separate tax return for your business; instead, you record all of your business profits and losses on your tax return. However, the personal obligation for judicial judgments, taxes, and debts comes with that simplicity. Various Tax-Saving Tips: 1) KEEP ACCURATE BOOKS OF ACCOUNTS- Nowadays, bookkeeping is a major difficulty for small and medium-sized business owners. In a sole proprietorship, the owner is resp...

  Companies in low flow situations are taking a more concerned look at their accounting books to understand and find a solution to slack back on costs and ascend profits. To stay afloat in this economic crisis, they are merging many strategies to build up a suitable and sustainable plan to keep up the cash reserves. Well, this brings companies to focus on making choices to strengthen business in the long term. We, at  Digilekha consultancy , are well-versed in handling critical financial situations and turn the tables to bring stability to businesses by providing better accounting solutions. Here are a few accounting tips to help you overcome the economic crisis as everyone does not have a futuristic approach to save and build reserves for crises. Monitoring The Cause Of The Financial Crisis: Internal as well as external factors may affect the financial status of your company. Pandemic is an external factor that has led to the downflow of businesses, bringing the economic cris...

  Tax planning is crucial, however, often ignored in India. Tax planning not just means availing of deductions, but even includes planning your investments and finances so that the tax payable is not high. Knowing which tax to pay is not sufficient. Filing income tax returns can be a complex job for new taxpayers. One needs to take an expert’s advice while submitting tax returns to save taxes appropriately. Also, the government introduces changes or exemptions in the tax laws, making the situation even more complicated for individual taxpayers while filing the tax. Here is when tax consultants come into the picture. Tax consultants, also known as tax advisors, are experts in taxation law, tax planning, and tax compliance. They provide helpful tax-related guidance; tax consultants are even responsible for keeping up-to-date knowledge and keeping you well informed about the latest tax necessities, either on the state or federal levels. What Does A Tax Consultant Do? Tax consultants h...

Profession tax was introduced in the year 1975 in Maharashtra. The intention was to raise the resources needed for implementing the Employment Guarantee Scheme and to provide for establishment of the Employment Guarantee fund. The salaries of persons and the businessman/ professionals have to pay profession tax in Maharashtra. The employment guarantee scheme of Maharashtra is now converted to centrally funded employment guarantee scheme via MGNREGS. With introduction GST on 1st July 2017, the indirect taxes of the country are subsumed under GST. Except Profession tax. Yes, Profession tax levy is persisting independently. It is the owner’s/ company’s responsibility to deduct the profession tax from the salaries of the employees and deposit it to Government. Also, the business entities and professionals have to get their own profession tax number and deposit the profession tax to the Government every year. The rate of profession tax is prescribed in the profession tax act under various S...