Taxation
A factory's tax position is set during the year: when a press is first used, whether small vendors are paid on time, how TDS is deducted on job work. Missed points return as disallowances and interest. Our work covers returns, planning, TDS, cross-border tax, assessments and appeals.
Last reviewed 8 October 2026
A forging unit in Ambad or a pharma plant at Sinnar may file a correct return and still face a demand, because a contractor payment escaped TDS or a stock figure given to the bank did not match the books. Such questions are typically raised two or more years after the year closes, with interest running from the original due date. Our income tax work covers the return, advance tax, TDS on contractors and suppliers, the treatment of machinery and loans, and the replies sent when the department raises questions. It is carried out from our Nashik office for companies, LLPs and partnership firms, for the promoters and families who own them, and for non-resident members of those families.
Since 1 April 2026 there are two Acts to work with. The Income-tax Act, 2025 governs the current tax year. Earlier years, and every assessment, notice and appeal about them, are still governed by the Income-tax Act, 1961. Where a section is cited, the new number is given with the old one beside it.
Income tax returns
A return prepared only in July inherits every decision made since April, and few of them can be corrected by then. Each computation is drawn from the books and reconciled with Form 26AS and the Annual Information Statement, and every figure is explained to you before filing.
Returns for individuals and HUFs
Returns for promoters, directors, salaried professionals, doctors and family HUFs, including income from property, capital gains and investments.
Returns for firms and LLPs
Returns for partnership firms and LLPs, with the remuneration and interest paid to partners checked against the limits in the law.
Returns for companies
Returns for private and public companies, prepared with the tax audit report and the reconciliation of book profit and taxable income.
Returns for trusts
Returns for charitable and religious trusts and institutions, including the application of income and the audit report required for them.
Revised and updated returns
Where an error is found after filing, a revised, belated or updated return is filed within the time the law allows.
Tax planning and advance tax
Planning stays within the law. It is done before the year closes, while the facts can still be arranged.
Tax planning
The timing of capital expenditure, the treatment of losses and depreciation, and the structure of remuneration and interest within a group are reviewed each year.
Choice of tax regime
For individuals and companies, the old and new regimes are compared on actual figures, and the conditions and deadlines for choosing are tracked.
Advance tax
Income and advance tax are estimated each quarter, so that no interest arises at the year end.
MSME 45-day payment rule
Amounts owed to micro and small enterprises are deductible only if paid within the time set by the MSMED Act. Vendors are classified by Udyam registration, and the creditors list is tested before the books close.
TDS and TCS
A missed deduction can cost the expense deduction as well as interest, so the expense ledgers are reviewed in addition to the challans.
TDS and TCS deduction
The deduction due on salaries, contractors, rent, professional fees, purchases and payments abroad is worked out, and the deposits are made on time.
Quarterly TDS returns
Quarterly statements and certificates are prepared and filed. Corrections after a mismatch or a default notice form part of the same work.
Lower deduction certificates
Where tax deducted would exceed the tax payable, an application is made for a certificate of lower or nil deduction.
Capital gains and property
Capital gains
Gains on the sale of land, buildings, shares, mutual funds and business assets are computed, with the holding period and cost checked. The reinvestment exemptions that apply are then examined.
Property transactions
Purchase and sale of immovable property, including TDS on the purchase, the stamp duty value rule, and joint development agreements. A common case is a promoter selling a plot or an old factory building.
Cross-border taxation
Families in the district often have a member working abroad, and many manufacturers buy technology or machinery from overseas suppliers.
NRI taxation
Residential status is determined, and returns are prepared for non-residents with income or property in India, including the sale of property and the TDS on it.
DTAA relief
Relief under the tax treaty between India and the other country is claimed, by exemption or by credit for foreign tax, with the forms the law requires.
Tax residency certificates
Applications for a tax residency certificate for Indian residents who need treaty benefits abroad.
Forms 15CA and 15CB
For payments to non-residents, the taxability of the remittance is examined and the certificate and declaration are filed before the bank releases the payment.
Assessments and disputes
Each notice begins with a close reading of what it asks. A record of every submission is kept, so the file is ready if the matter proceeds to appeal.
Scrutiny and faceless assessment
The documentary trail is assembled and structured replies are filed on the e-filing portal within the time allowed.
Reassessment
Notices for income said to have escaped assessment are checked for limitation and for the procedure the law requires before they are answered.
Penalty proceedings
Replies in penalty proceedings for under-reporting, misreporting and defaults, filed with the facts that support a reasonable cause.
Rectification
Where an intimation or order contains an apparent error, a rectification request is filed before any demand is paid.
Income tax refunds
Refunds that are delayed, adjusted against old demands or not issued are followed up with the department.
Income tax appeals
First appeals go before the Joint Commissioner (Appeals) or Commissioner (Appeals), and second appeals before the Income Tax Appellate Tribunal. Applications for stay of demand are made while an appeal is pending.
Search and survey support
During and after a search or survey, statements and records are reviewed, and the replies and returns that follow are prepared.
Other direct tax work
Trust and charity registration
Registration of trusts and institutions for exemption, and approval for donors' deductions, the provisions that replaced sections 12A and 80G of the 1961 Act, with renewals as they fall due.
Equalisation levy
The levy no longer applies to new transactions. Returns, notices and assessments for earlier years in which it applied are still handled.
Transition to the Income-tax Act, 2025
Your recurring sections, forms and TDS codes are mapped to the new Act, and the two Acts are kept apart for the years each one governs.
For manufacturers
In a factory, the income tax position is largely settled on the shop floor and in the purchase ledger, well before the return is prepared. An unpaid vendor or an undated machine addition is usually found by the assessing officer if it is not found earlier. The following points are examined first.
Capital goods and depreciation
Machinery, moulds, dies and tooling are often bought in stages and financed by loans, and each item may be put to use on a different date. That date decides the depreciation for the year. For this reason the asset register is tied to the purchase bills and to the date of first use. When a machine is sold or scrapped, the effect on the block of assets is calculated before the sale.
Payments to MSME suppliers
The income tax law allows a deduction for amounts owed to micro and small enterprises only if they are paid within the time set by the MSMED Act. A manufacturer may have hundreds of small vendors, and an unpaid creditor at 31 March can become added income. We classify vendors by their Udyam registration. The year-end creditors list is tested before the books close. The rule is in section 37(2)(g) of the Income-tax Act, 2025 (section 43B(h) of the 1961 Act), unchanged in substance.
TDS on job work, contractors and freight
Job-work charges, labour contractors, transporters, machine repairs and canteen contractors each attract TDS, although the rates and exemptions differ. Each quarter the expense ledgers are compared with the TDS returns. A gap found only at the tax audit leads to interest and a late correction, and a disallowance can follow.
Group companies and promoters
Some groups have a manufacturing company, a trading unit and an LLP that holds the land. Rent, interest, salaries and sales between them need to be priced and documented. We review the group as a whole, together with the promoters' own returns, so that one transaction receives the same treatment on both sides. For large or cross-border transactions, see our transfer pricing work.
Scrap, stock and the bank
Scrap sales, stock valuation and the stock figures given to the bank all reach the tax computation. An assessing officer will ask why the stock in the books differs from the stock statement filed with the bank. We reconcile the two before the return is filed.
How an engagement runs
For a business, the work follows the tax year. A notice or an appeal is handled as a separate matter with its own scope.
Start of the year
The applicable regime, the TDS position on recurring payments and the expected capital expenditure are reviewed with your accounts team.
Each quarter
Advance tax is estimated, and the expense ledgers are compared with the TDS returns before they are filed.
Before the books close
The MSME creditors list, the asset register and the stock figures are tested, while corrections are still possible.
Return and after
The computation is explained to you before filing. Any intimation or notice that follows is read against the return and answered within the time allowed.
What we need from you
For a business return and the year-end review, we usually ask for the following. At the start, we tell you which items apply to you.
- Audited or draft financial statements for the year, with the trial balance and ledgers
- Bank statements for every account, including loan and overdraft accounts
- Fixed asset register, with purchase and sale bills for additions and disposals
- TDS and TCS returns, challans and certificates for the year
- GST returns for the year, so turnover can be reconciled
- Form 26AS and the Annual Information Statement, or the statement that replaces them under the Income-tax Rules, 2026 for later years (we can download these with your login)
- Details of loans taken and given, and of transactions with related parties and group companies
- For capital gains, purchase and sale deeds, broker statements and proof of any reinvestment
- For non-residents, passport entries or travel dates, and any foreign tax paid
- Copies of any notices, earlier assessment orders and appeals still pending
How the change of Act affects you
The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026. A single "tax year" replaces the terms "previous year" and "assessment year". The year that began on 1 April 2026 is the first tax year under the new Act.
The 1961 Act still applies to your file. The return for the year that ended on 31 March 2026 (assessment year 2026-27) is filed and assessed under it. Notices, reassessments, penalties and appeals for that year and earlier years also remain under the 1961 Act, so most businesses will work under both Acts at once for the next few years.
Section numbers have changed. Returns of income now fall under section 263 (section 139 of the 1961 Act), and tax audit under section 63 (section 44AB). TDS on payments other than salary is brought together in section 393, which replaces many separate sections of the old Act. Appeals to the Tribunal are under section 362 (section 253). Because forms also carry new numbers, standing instructions to your accounts team should be reviewed, along with vendor declarations and contracts that quote old sections.
Common questions
Which Act applies to my return this year?
The answer depends on the year in which the income was earned. Income of the year that ended on 31 March 2026 is returned and assessed under the Income-tax Act, 1961, even though the return is filed after 1 April 2026. Income from 1 April 2026 onwards falls under the Income-tax Act, 2025. Notices and appeals for earlier years also continue under the 1961 Act.
I have received an income tax notice. What should I do first?
Keep the notice and reply with care, without haste. On the e-filing portal, confirm that the notice is genuine and note the year it relates to and the section under which it is issued. The date by which a reply is due should also be noted. Then collect the return, computation and documents for that year. Once we receive the notice with those papers, we will explain what is being asked and what the reply needs to contain.
Do you work with individuals as well as businesses?
Yes. Returns are prepared for promoters, directors, salaried professionals, doctors and families, including capital gains on property and shares. For business owners we often review the personal and business returns together, because transactions between the two need to match.
Can a demand be stayed while an appeal is pending?
An application can be made to the assessing officer for a stay of demand while a first appeal is pending. In practice the department usually expects a part payment of the disputed demand. Whether a stay is granted depends on the facts of the case. A stay can also be sought from the appellate authorities.
Does the new Act change TDS for my business?
The basic obligations continue. However, the sections, payment codes and forms have changed, and most separate TDS sections of the old Act now sit in one table in section 393. For payments made from 1 April 2026, your accounting software, vendor master and quarterly statements need to use the new codes. Corrections for earlier quarters stay under the old Act.
A family member lives abroad and is selling a flat in Nashik. What is involved?
The buyer must deduct tax on the sale price at the rates that apply to a non-resident, which are often higher than the tax finally payable. The seller can apply for a certificate of lower deduction before the sale, and a return is filed afterwards to claim any excess. Where the proceeds are sent abroad, the bank will ask for Forms 15CA and 15CB.
Are trusts registered under the old sections 12A and 80G still valid?
Registrations and approvals granted under the 1961 Act continue for the period for which they were granted. Renewal, when it falls due, is made under the corresponding provisions of the Income-tax Act, 2025. The validity date on the existing certificate should be checked first.
See also: GST and Indirect Tax, Accounting and Compliance, Transfer pricing
Contact the firm
About Taxation, or any related matter. A phone number or an email address is enough for us to reply.
- Office
- Office at Plot 08, Eden Complex, Gangapur Road, Nashik 422222
- Hours
- 9:30 AM to 8:00 PM; other times by appointment