Filing vs planning
Filing a return is recording history. Planning is shaping it. Most taxpayers in India lose 5–15% of legitimate savings every year because planning happens in March instead of April. The difference is structural, not clever — choosing the right regime, structuring salary correctly, timing capital gains, and using legitimate deductions in full.
Direct tax essentials
- Choose between old and new regime each year based on actual deductions, not assumptions
- Plan advance tax in four instalments — June 15, Sept 15, Dec 15 and March 15
- Claim Section 80C, 80D, 80CCD(1B), 24(b) and HRA exemptions correctly
- For founders — separate compensation between salary, dividends and director remuneration
- For business income — opt for presumptive taxation under 44AD/44ADA where eligible
GST: the silent margin killer
Wrongly claimed input tax credit, mismatched 2B reconciliation, late return filing — each of these silently erodes margins. A monthly GST hygiene routine, not a panic at year-end, keeps you safe.
The 2B reconciliation should be done before filing 3B every month, not after. Late ITC reversal carries 24% interest. Vendors who do not file their GSTR-1 cost you real money.
Notices, assessments and litigation
Income tax notices are increasingly automated. Most are routine, but a 143(2) scrutiny or a 148 reassessment requires careful, deadline-bound responses. Do not respond casually. Do not ignore. Engage a professional within the first week of receiving any notice.
Frequently asked
When should I switch tax regimes?
Compare both regimes each year. The new regime favours those with fewer deductions; the old regime usually wins if HRA, 80C and home loan interest are fully utilised.
Is GST applicable on freelance services?
Yes, if aggregate turnover exceeds INR 20 lakh (INR 10 lakh in special category states), or if you supply services to clients in other states.