Income Tax Solutions for India
At Sompalli & Co, we provide comprehensive income tax services to help individuals and businesses optimize their tax positions while ensuring complete compliance with Indian tax laws.
Why Tax Planning Matters
Strategic tax planning is more than just filing returns—it's a year-round approach to managing your finances effectively:
Maximize Savings
Identify all eligible deductions and exemptions to reduce your tax liability legally.
Compliance Assurance
Stay protected from penalties and legal issues with accurate filings and proper documentation.
Financial Growth
Align tax strategies with your financial goals for long-term wealth creation and protection.
Our Income Tax Services
From individual tax planning to complex business taxation, we provide end-to-end income tax solutions tailored to your specific needs.
Business Tax Services
Corporate Taxation
Comprehensive tax solutions for companies of all sizes, ensuring compliance while minimizing tax liability.
- Company tax returns
- Quarterly advance tax planning
- Corporate restructuring tax advice
Partnership Firm Taxation
Specialized tax services for partnership firms addressing the unique tax considerations for partners and the firm.
- Partnership deed optimization
- Profit allocation planning
- Partner remuneration structuring
Tax Compliance Management
Ensuring timely compliance with all income tax regulations to avoid penalties and interest charges.
- Tax audit preparations
- Compliance calendars
- Documentation management
Individual Taxation
ITR Filing
Expert preparation and filing of Income Tax Returns for all categories of individual taxpayers.
- ITR-1 to ITR-7 preparation
- Income verification
- Deduction maximization
Tax Saving Investments
Strategic guidance on investments that maximize tax benefits under various sections of the Income Tax Act.
- Section 80C investment planning
- Health insurance optimization
- Housing loan benefits
Capital Gains Planning
Expert strategies to manage and minimize tax liability on various types of capital gains.
- LTCG/STCG optimization
- Tax-saving reinvestments
- Asset transfer strategies
TDS/TCS Management
TDS Return Filing
Complete assistance with preparation and filing of quarterly TDS returns for all categories of deductors.
- TDS computation
- Quarterly statement preparation
- Correction statements
TCS Return Filing
Expert assistance with Tax Collected at Source compliance for businesses required to collect TCS.
- TCS applicability assessment
- Return preparation and filing
- Payment reconciliation
TDS Certificate Issuance
Timely generation and distribution of TDS certificates to deductees in compliance with regulations.
- Form 16 preparation
- Form 16A generation
- Digital distribution support
Tax Assessment Support
Assessment Representation
Professional representation before tax authorities during assessment proceedings to protect your interests.
- Personal hearing attendance
- Document presentation
- Case preparation
Notice Response Management
Expert handling of tax notices and queries from income tax authorities with effective responses.
- Notice interpretation
- Response drafting
- Supporting document compilation
Scrutiny Assessment Assistance
Comprehensive support during detailed scrutiny assessments to ensure favorable outcomes.
- Response strategy formulation
- Legal precedent research
- Assessment order analysis
Advanced Tax Planning Services
Investment Planning
Strategic investment recommendations aligned with tax-saving objectives under various sections of Income Tax Act.
Popular Tax-Saving Options
- ELSS Mutual Funds
- PPF & NSC
- Life Insurance Premiums
- NPS Contributions
Our Approach
- Risk profile assessment
- Goal-based recommendations
- Regular portfolio review
- Tax optimization
Business Structure Optimization
Advising on optimal business structures to minimize tax liability while meeting business objectives.
Entity Comparisons
- Proprietorship vs Partnership
- LLP vs Private Limited
- One Person Company
- Section 8 Companies
Benefits Analysis
- Tax rate optimization
- Compliance requirement analysis
- Succession planning
- Liability protection
Any person whose estimated tax liability for the financial year exceeds ₹10,000 (after considering TDS/TCS) must pay advance tax. This includes:
- Salaried individuals with income from other sources
- Business owners and professionals
- Individuals with capital gains
- Rental income earners
- Companies and firms
Due Dates and Installment Percentages
| Installment | Due Date | Minimum Payment (Non-corporate) | Minimum Payment (Corporate) |
|---|---|---|---|
| First | June 15 | 15% of total tax | 15% of total tax |
| Second | September 15 | 45% of total tax | 45% of total tax |
| Third | December 15 | 75% of total tax | 75% of total tax |
| Fourth | March 15 | 100% of total tax | 100% of total tax |
Important Note:
Failure to pay advance tax or significant shortfall in payment may result in interest charges under Sections 234B and 234C of the Income Tax Act. The interest rate is currently 1% per month or part thereof.
Since the Union Budget 2020, individual taxpayers can choose between the old tax regime with exemptions and deductions or the new tax regime with lower tax rates but fewer exemptions:
Old Tax Regime
Tax Rates:
- Up to ₹2.5 lakhs - Nil
- ₹2.5 lakhs to ₹5 lakhs - 5%
- ₹5 lakhs to ₹10 lakhs - 20%
- Above ₹10 lakhs - 30%
Available Deductions & Exemptions:
- Section 80C to 80U deductions (up to ₹1.5 lakhs under 80C)
- HRA exemption
- LTA exemption
- Standard deduction (₹50,000 for salaried)
- Professional tax deduction
- Home loan interest deduction
- Various investment exemptions
New Tax Regime
Tax Rates:
- Up to ₹2.5 lakhs - Nil
- ₹2.5 lakhs to ₹5 lakhs - 5%
- ₹5 lakhs to ₹7.5 lakhs - 10%
- ₹7.5 lakhs to ₹10 lakhs - 15%
- ₹10 lakhs to ₹12.5 lakhs - 20%
- ₹12.5 lakhs to ₹15 lakhs - 25%
- Above ₹15 lakhs - 30%
Limited Deductions & Exemptions:
- Certain deductions under Chapter VI-A still available
- Employer contribution to NPS under Sec 80CCD(2)
- No HRA, LTA, standard deduction
- No Section 80C deductions
- No home loan benefits
Which regime should you choose?
The decision depends on your financial situation. Generally, if you claim substantial deductions and exemptions, the old regime may be beneficial. If you have fewer investments and exemptions, the new regime might offer lower taxes. We recommend calculating your tax liability under both regimes before making a decision.
Income tax notices are formal communications from the Income Tax Department requiring your attention. Here's how to handle them:
Don't panic, but don't ignore
Tax notices are routine communications but ignoring them can lead to penalties and legal complications. Respond within the specified timeframe.
Identify the notice type
Common notice types include:
- Section 143(1): Intimation after processing return
- Section 143(2): Scrutiny notice for detailed examination
- Section 148: Notice for escaped income
- Section 156: Demand notice to pay outstanding tax
- Section 245: Set off of refunds against outstanding demand
Gather relevant documents
Collect supporting documents related to the notice, including your income tax return, Form 16, investment proofs, and previous correspondence with the tax department.
Consult a tax professional
For complex notices, especially scrutiny notices or large demand notices, it's advisable to consult a tax professional before responding.
Respond appropriately and track
File your response through the e-filing portal within the specified time limit. Keep records of all communications and follow up if necessary.
How we can help:
Our team specializes in handling all types of income tax notices. We can interpret the notice, prepare a comprehensive response with supporting documents, represent you before tax authorities if needed, and follow up until resolution.
Filing your income tax return after the due date can result in various penalties:
| Consequence | Details |
|---|---|
| Late Filing Fee (Section 234F) |
|
| Interest on Tax Due (Section 234A) | 1% per month (or part thereof) on unpaid tax amount from due date till actual payment |
| Loss of Interest on Refunds | Interest on refund is calculated from the date of filing rather than the due date for late returns |
| Cannot Carry Forward Certain Losses | Except loss from house property, other losses (business, capital gains, speculation business) cannot be carried forward if return is filed late |
| Penalty for Non-Filing | If return is not filed at all, penalty can be up to 50% of the assessed tax |
| Prosecution in Extreme Cases | For very significant delays or tax evasion, prosecution proceedings with imprisonment from 3 months to 7 years depending on the amount of tax evaded |
Important Note:
Returns can be filed within 2 years from the end of the relevant financial year as a "belated return," but you'll still face the penalties mentioned above. After this 2-year window, you cannot file returns without special permission from tax authorities.
Have more questions about income tax?
Our tax experts are ready to provide guidance tailored to your specific financial situation
Schedule a Free ConsultationReady to Optimize Your Tax Situation?
Our expert team helps you maximize savings while ensuring full compliance with Indian tax laws.