Determining taxable income as per the Income Tax Act

Every business must compute taxable income considering revenue, expenses, depreciation, disallowances and special tax provisions. Team TAXAJ conducts a detailed review of financial statements, ledgers and tax adjustments to ensure taxable income aligns with the Income Tax Act. We identify tax-deductible expenses, verify compliance with ICDS where applicable, apply relevant exemptions and ensure all transactions are disclosed.

Preparation of financial statements

Accurate financial statements are the foundation of correct tax filing. We prepare or finalise balance sheets, profit and loss accounts, cash flow statements, notes to accounts and supporting schedules in accordance with the Companies Act, applicable accounting standards and ICDS. Properly prepared financials reduce audit friction and enhance tax accuracy.

Depreciation and MAT/AMT calculations

We compute depreciation under both the Income Tax Act and the Companies Act, and calculate liabilities under Minimum Alternate Tax or Alternative Minimum Tax where applicable. Team TAXAJ prepares depreciation schedules, adjusts book profit as required and manages MAT/AMT credit utilisation to optimise lawful tax outflows.

TDS/TCS reconciliation

Mismatches between TDS/TCS returns and Form 26AS or AIS commonly trigger notices. We perform line-by-line reconciliation of TDS, TCS, GST turnover matching and income recorded in books to ensure eligible credits are claimed and mismatches are resolved to avoid disallowances under section 40(a)(ia).

Transfer pricing compliance (if applicable)

For international transactions and specified domestic transactions, we offer full transfer pricing support: arm’s length price determination, benchmarking analysis, preparation of transfer pricing documentation, accountant’s report (Form 3CEB) and advisory on inter-company arrangements to reduce adjustment risk.

Tax audit reporting

For entities subject to audit under section 44AB, we manage the complete tax audit process and prepare Form 3CA/3CB and Form 3CD, verify disallowances, maintain clause-wise working papers and ensure records meet statutory requirements to avoid penalties and assessment complications.

Filing of ITR-5, ITR-6 or ITR-7

We determine and file the correct return form for your entity: ITR-5 for LLPs, firms, AOPs and BOIs; ITR-6 for companies (other than those claiming exemption); ITR-7 for charitable or exempt entities. Our team ensures complete schedules, accurate disclosures and proper e-verification.

Advisory on allowable deductions and exemptions

Our tax experts analyse operations to identify eligible deductions and exemptions under the Income Tax Act—business expenditure claims, depreciation strategies, research incentives, SEZ and startup benefits—applied in a compliant, tax-optimised manner.

Loss set-off and carry-forward analysis

We review brought-forward losses, unabsorbed depreciation and capital losses to ensure correct classification, compliance with time limits and strategic utilisation of losses to minimise future tax liabilities while complying with the law.

Representation before tax authorities

If your company receives a notice, query or scrutiny, Team TAXAJ prepares responses, coordinates documentation, represents you at hearings and defends assessments to reduce risk, penalties and litigation exposure.

Advance tax planning for the financial year

We forecast income, project tax liability and design an advance tax payment schedule to avoid interest and penalties while optimising cash flow. Our proactive planning helps businesses meet quarterly obligations and manage tax cashflows efficiently.

All services are delivered by Team TAXAJ with audit-proof documentation, client authorisations and secure communication channels.
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