Financial Planning and Tax Planning are a vast subject and not all are aware of the tax laws. These are specified to change from time-to-time based on the decisions of the Finance Minister. Recently Indian Government is taking strict measures on those who are evasing taxes.
Indian Government allows to claim deductions and exemptions under various sections. This is a legal tender to save taxes. To claim exemptions and deductions legally, the tax-payer needs a tax consultant.
Tax Consultant is nothing but a Qualified professional who deals client’s Tax-Planning by applying all the exemptions/deductions based on tax-payers eligibility. They will check your income-levels and suggest best possible ways to save “Tax”. They will cross-check the income sources, make-use of various sections to claim eligible deductions, there-by helping them to save taxes legally.
Generally Tax-Consultants are Qualified Chartered-Accountants(CA’s),ICWA, CS(Company-Secretary-Those are less popular in India, but a Qualified experts in accounts)etc who are aware of the updated laws and having decades of experience in Income-Tax returns filing .
Generally they charge a “Fee” for suggestions where the individual tax payer(Assesse), Corporates won’t consider this as a burden as they are legal Professionals to do this business. Every corporate, salaried employee should make use of their service, thereby making by their life stress-free. To avoid further tax-notices from the Income Tax Department, they guide their clients with their expertise.
Eventhough some think that Tax Planning should be done by themselves to avoid “Fees” to the tax consultants, it is recommended to consult them and take their advice. Thinking over tiny “Fees” amount may lead to income tax notices(If any)as you may not be 100% aware of the tax laws. So it is better to consult them, take their advise and make your financial life tension-free.