Tax Advisory Services in India
Tax advisory helps individuals, entrepreneurs and companies understand their tax obligations, plan lawful transactions, prepare accurate returns and manage compliance with changing Indian tax laws.
Businesswonder presents tax advisory services for individuals and corporate clients, including income tax, tax deducted at source (TDS), goods and services tax (GST), corporate taxation, Special Economic Zones (SEZs), customs duties and tax considerations when buying, selling or starting a business. Effective tax planning is based on applicable legislation, notifications, judicial decisions and the facts of each transaction.
Income Tax Advisory for Individuals
Individual income tax advisory includes determining residential status, identifying taxable income, evaluating eligible deductions and exemptions, selecting the applicable tax regime, calculating advance tax and filing returns. The Income-tax Act, 1961 governs assessment years to which it applies; the Income-tax Act, 2025 is intended to govern the new framework from 1 April 2026, subject to the applicable commencement and transition provisions. The relevant tax year and law must therefore be checked before advising or filing.
Services can cover salary, house property, business or professional income, capital gains and income from other sources, together with scrutiny notices, refunds and appeals. For statutory text, return utilities and notices, consult the Income Tax e-Filing Portal and the Income Tax Department.
Corporate Tax Advisory and Business Taxation
Corporate tax advisory covers computation of business profits, deductible expenses, depreciation, loss carry-forward, advance tax, tax audit, related-party transactions and relevant tax incentives. Companies may also require advice on minimum alternate tax, applicable concessional regimes, dividend-related obligations and international transactions.
Advisory for partnerships, LLPs, proprietorships and companies must distinguish their different tax treatments and reporting obligations. Under section 44AB of the Income-tax Act, 1961, specified businesses and professionals are subject to tax audit requirements where applicable; corresponding provisions under later legislation should be checked for the relevant tax year. Company formation and governance matters are addressed under the Ministry of Corporate Affairs framework.
Tax Deducted at Source (TDS) and Tax Collected at Source (TCS)
TDS requires specified payers to deduct tax from certain payments, including salaries, professional fees, contractor payments, rent and interest, when statutory conditions are met. TCS applies to specified collections or transactions. Advisory services include identifying the relevant provision, checking thresholds, obtaining TAN where necessary, making timely deposits, filing statements, issuing certificates and reconciling tax credits.
For example, section 192 of the Income-tax Act, 1961 concerns salary TDS, section 194C addresses certain contractor payments and section 194J covers specified professional or technical fees. These section references apply to the 1961 Act; verify the corresponding provisions for any tax year governed by the 2025 Act. Official guidance is available through the Income Tax e-Filing Portal and TRACES.
GST Registration, Returns and Advisory
GST is India's principal indirect tax on most supplies of goods and services. Advisory includes registration, classification, place of supply, valuation, invoicing, input tax credit, reverse charge, return filing, refunds, e-way bills, e-invoicing where applicable, audits and dispute management.
Section 22 of the Central Goods and Services Tax Act, 2017 sets out registration liability subject to applicable thresholds and conditions; section 16 prescribes eligibility and conditions for input tax credit; section 31 concerns tax invoices; and section 39 addresses returns. Specific requirements also depend on IGST law, state GST legislation, rules and notifications. Consult the GST Portal and CBIC GST resources.
Tax Effects of Starting, Buying or Selling a Business
Business restructuring, incorporation, acquisitions, asset sales and transfers of shares can have different tax consequences. Planning may include capital gains, depreciation recapture, transfer pricing, GST on asset transfers, stamp duty, withholding tax and succession of tax liabilities.
Before completing a transaction, review its legal form, purchase consideration, liabilities, contracts and tax history. A sale of individual assets may be taxed differently from a transfer of a business as a going concern or a share sale. Commercial terms should be documented and reviewed before execution.
Special Economic Zone Tax Advisory
Businesses operating in Special Economic Zones may encounter special rules for authorized operations, customs treatment, GST zero-rating and eligibility for income-tax incentives. The Special Economic Zones Act, 2005 and Special Economic Zones Rules, 2006 provide the core regulatory framework. Under section 16 of the IGST Act, 2017, supplies to an SEZ unit or developer for authorized operations may qualify as zero-rated supplies subject to statutory conditions.
Income-tax benefits for SEZ units are not universally available to new units: eligibility depends on commencement dates, transitional rules and the specific provision. Refer to the SEZ India portal and GST Portal for current guidance.
Customs Duty, Excise Duty and Legacy Indirect Taxes
Customs advisory concerns import and export classification, valuation, duty concessions, origin rules, documentation and compliance under the Customs Act, 1962 and Customs Tariff Act, 1975. Section 12 of the Customs Act is the charging provision for customs duties, subject to applicable exemptions and other provisions. Official notifications and tariff information are available from the Central Board of Indirect Taxes and Customs.
GST largely replaced service tax, central excise on most goods and state VAT on most supplies from 1 July 2017. However, central excise, state VAT or other legacy laws may remain relevant for specified products, earlier tax periods, assessments, refunds and litigation. Wealth tax was abolished with effect from assessment year 2016-17, so historical wealth-tax advice is relevant mainly to earlier periods and unresolved proceedings.
How Tax Advisory and Compliance Support Works
- Understand the client: Review the business structure, activities, locations, income sources and transaction records.
- Identify obligations: Determine applicable taxes, registrations, withholding duties, return types and deadlines.
- Review records: Reconcile books, invoices, bank entries, tax credits and statutory statements.
- Evaluate lawful options: Assess available deductions, incentives, exemptions and transaction structures.
- Prepare filings: Complete returns and supporting documents using the relevant government portals.
- Respond and improve: Address notices and maintain records, controls and a recurring compliance calendar.
Depending on the engagement and applicable professional regulations, representation, certification, audit and legal advocacy may need to be undertaken by appropriately qualified or authorized professionals.
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Information reviewed: 8 October 2026. Legislative commencement, rates and administrative procedures should be verified against the applicable official sources.