First of all, it's important to recognize the situations where a Chartered Accountant's (CA's) expertise is essential and when it might not be required. Understanding these cases can help you make informed decisions about whether or not to seek professional assistance. Here are some cases and reasons for which you will need the help of a CA.

Simplified and easily accessible-

The fiscal changes introduced by Budget 2020 have launched a new tax regime that offers a lower tax rate on your income. However, it comes with the trade-off that you will not be eligible for any deductions or exemptions.

In contrast, the old tax regime features higher tax rates, but it provides the flexibility to claim various deductions from your income. When filing taxes, you can choose between these two regimes; the one includes all deductions and exemptions, and the other is without them.

Suppose your income primarily consists of a salary, and you have no claims for deductions related to investments in ELSS, medical insurance, donations, or interest on education loans. In that case, opting for the new tax regime is wise. This choice simplifies the tax calculation process, and additionally, the Income Tax Return (ITR) forms will come pre-filled with relevant details under specific categories, making the entire filing process easier.

Managing Taxes with a Single Income Source-

When your primary earnings come from your salary, handling your tax filing becomes simpler. In such cases, you just need to input the amount provided in Form-16, which has been given to you by your employer.

However, you can compare the tax responsibilities under the new and old tax systems and select the one that works best for you.

Status quo-

If your tax circumstances have changed during the year, it might be a good idea to seek the advice of a Chartered Accountant. For example, if you've switched jobs, the computations in Form 16 might need adjustments unless your new employer has considered your previous tax payments and deductions. Additionally, changing jobs can potentially put you in a higher tax bracket, which results in increased tax liabilities.

Similarly, if you've experienced significant gains from selling a property, it's important to take this into consideration and look for alternatives to reduce your tax liability. When your financial status changes, it is advisable to have professional advice to manage your taxes effectively.

Understanding Your Finances-

To calculate your personal taxes, you only need a basic understanding of financial matters and basic tax rules. But the best thing is that you can easily acquire this knowledge from the internet.

Over time, tax structures have been simpler, which has made them easier for people to understand. You can always contact the IT department's helpdesk by contacting their number if you have any questions or need further clarification.

Documents needed for filing taxes -

Form 16 (TDS deducted from salary by your employer)

Form 16A (TDS on interest income from your bank account)

Form 26AS (Consolidated annual tax statement) & AIS

Home loan statement from your lender for the year

Tax-saving investment proofs

Capital gains tax statements from mutual funds Share trading

Any relevant document for any other income earned

When Should You Consider Hiring a CA?

There are three major circumstances under which you should really consider hiring a CA to ease the tax filing process.

Income from business-

If you have a business or work for yourself, it's better to think about hiring a Chartered Accountant (CA). You may need to keep a record of your financial transactions for your business. If your business turnover exceeds Rs 1 crore (10 crores in certain cases) or your gross receipts as a professional are over Rs 50 lakh (75Lakhs in certain cases), it's mandatory to have your accounts audited by a CA.

A CA can help you reduce your tax liability since they are current on the most recent tax rules and regulations. They may also assist you in staying in compliance with the tax regulations by helping you file the necessary documents and pay your taxes in advance before the deadlines.

Dealing with Tax Complications

Tax complications such as selling a property within five years of purchase can result in tax benefits being added back to income. Another example of tax complications is misreported income, like the interest income of a minor child, which must be addressed in the current tax filing.

In these situations, Chartered Accountants can guide you through the tax complications and help manage the complexities effectively