If you are a salaried individual, you are required to submit investment proofs to your employer every financial year. Dealing with taxation-related matters, such as filing tax returns, can be daunting. You may also need help with tax planning if you have income from various sources. Getting professional help from experts will help you lower your tax liabilities and avoid mistakes. Thus, hiring a tax consultant may be beneficial for you.
See also: Income tax deductions for salaried employees
What is a tax consultant?
Tax consultants or tax advisors are financial experts with specialised knowledge of tax accounting and tax laws. These may include tax attorneys, Certified Public Accounts (CPAs), financial consultants or licensed agents.
What does a tax consultant do?
Tax consultants may work for an agency or may be self-employed individuals. They are responsible for undertaking various tasks such as:
- Assessing a taxpayer’s legal and financial situation to determine his tax liabilities
- Identifying effective ways to lower tax liabilities
- Helping the taxpayers make investments, such as pension plans, medical insurance, life/term insurance, and tax-saving schemes by the government
- Handling tax-related documentation
- Filing income tax returns
- Estimating taxes on various investment portfolios
- Completing tax forms, such as Form 16, Form 12B, etc., and submit the documents through the Income Tax Department’s website
Why should you hire a tax consultant?
Saves time and effort
It helps avoid the last-minute hassles of filing income taxes or making investments when the year-end draws nearer. Filing tax returns is time-consuming. An income tax consultant may not just help you with filing your returns correctly and advise you on how you can effectively manage your finances.
Helps identify your tax deductions
A tax advisor will help you identify the various tax-saving options available to you. You can know the right strategies to make smart investment decisions. A tax professional will review your previous returns, identify if any deductions were missed and amend them.
Resolve tax concerns
You may have many questions related to your taxes. Hiring a tax consultant can help you get answers to all your questions. You can approach them for tax-related advice and have all your doubts cleared. Moreover, they can keep your tax records.
FAQs
What is the difference between tax consultants and accountants?
A tax consultant deals with taxation-related matters, helps you with tax planning and may offer legal tax advice. On the other hand, the role of an accountant covers wider aspects involving the maintenance of annual accounts of firms, filing income tax returns, assessing business performance reports, and tax audits.
Which is better, a tax software or hiring a tax consultant?
While tax software is popular owing to the ease and convenience it offers, hiring a tax consultant may be beneficial as you can seek advice on tax planning and make informed decisions.
Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
