Home Finance 7 Essential Factors To Consider Before Relying on an Income Tax Consultant

7 Essential Factors To Consider Before Relying on an Income Tax Consultant

Getting through the tax season can be a stretch for individuals and companies, regardless of the salary structure, annual turnover, and other relevant adjustments. While the concept of tax savings and returns are encouraging enough, you still require reliable consultation to understand more about government taxation, payment liabilities, returning filings, credentials, tax compliance, and more.

While you can always learn and handle taxes on your own, the approach comes with significant downtime issues. Moreover, taxation varies according to the existing slabs, company profile, and business turnover, and therefore, a one-size-fits-all approach doesn’t always work. It is where an income tax consultant comes in handy as he or she allows you to understand more about the liabilities, filing strategies, and even the aligned investments that can minimize your obligations.

Types of Tax Consultants to rely on

While you can always keep a tax accountant on your payroll, consultation is a better way to start, as you can then slowly assess your financial requirements and consider full-time accountants for the future, if and when necessary. However, if you are not sure which income tax consultant would be a good fit, consider the one with the following traits:

  1. Extensive experience
  2. Word of mouth reviews
  3. Adherence to the Indian tax regime
  4. Global tax-related expertise

Advantages of Hiring a Tax Consultant

Before we can even look at the most critical factors that determine our selection of a tax consultant, it is necessary to consider the advantages.

  • Tax-based Compliance
  • Timely ITR filing
  • Improved tax planning
  • Better assessment of tax obligations

Things to Consider Before Hiring a Tax Consultant

  1. Nature of Clients

In case you want to persist with top-notch consultants, it is necessary to take a closer look at their clientele. Diversity of customers and their tax-centric relevance play a significant role in helping you determine the credibility of tax consultants and take decisions accordingly.

  1. Availability

Organizations need to adhere to the tax-based regulations throughout the year. Therefore, it is necessary to check whether the consultants also offer continued service coverage, regardless of the time of the year. When it comes to taxation, many things can go wrong at once, especially if you are a company owner and worried about making relevant business decisions, without the presence of a tax consultant. An income tax advisor, therefore, helps you monitor every entrepreneurial move and its tax-based ramification.

  1. Nature of Service

In case you are planning to hire a tax consultant, you can either opt for a company or a standalone service provider. While an independent tax consultant might quote a more economical price, company-backed advisors are often more reliable when service quality, coverage, and attention is concerned.

  1. Adherence to the Existing Tax Regime

The tax consultant must be well-aware of the Indian taxation laws and regulations. While it is always advisable to opt for service providers with global exposure, Indian taxation involving slabs for business accounts, permissible deduction, and filing deadlines are necessary to minimize hassles and chances of penalties.

  1. Rates

The financial aspect of tax consultation needs to be evaluated, ascertained and addressed in detail. For instance, if you are a startup, it isn’t advisable to hire pricey consultants for the first few years of the business. Therefore, it is necessary to compare the quotations offered by the concerned tax consultants and zero in on the services that strike the perfect balance between affordability and value.

  1. Scalability

A tax consultant must be scalable as companies would eventually like to expand and might end up requiring further consultation or even help with accounting. It is where firms offering tax consultation come in handy as they have the requisite firepower and professional spread to deal with escalating client demands, provided the services need to be bolstered, curated, or amplified, as per preferences.

  1. Issue resolution

It is necessary to note how the income tax advisor interacts with the clients in case there is an untoward tax issue to deal with. That is where it is advisable to value transparency, more than anything else.

A tax consultant who resonates with every mentioned trait and puts your business or individual financial health in an advantageous position should be preferred, in the long and short-run.


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