ITR Filing Fees by CA
Completing your income tax return can often be a complicated task. The more sources of income and deductions you have, the more complex filing them becomes. Several people opt to file their returns independently through the use of online websites. Others may prefer the option of hiring a Chartered Accountant (CA) to help them reduce their workload and ensure accuracy. However, it is essential to understand ITR filing fees by CA before divulging sensitive financial data to them, so you know exactly what to expect and avoid any surprises. This also includes knowing the ITR filing fees for individuals based on different income categories.
This is what you need to know when it comes to ITR filing fees by a Chartered Accountant.
Factors Affecting ITR Filing Fees by CA and ITR File Charges
The charges placed by a CA for ITR filing are not fixed and change according to the following factors:
I) ITR Form Category
Different types of income have different levels of complexity, and so it is expected that there would be some differences in the return forms, also known as ITR forms. It is expected that a simple ITR- 1 for salaried individuals will be charged less than an ITR-3 (which is for business owners and professionals). All application forms have a designated amount of time and work associated with them and so the filing ITR fee will depend on that.
Sources of Income and Their Complications
Your financial condition has its own level of complexity, and this portion deeply affects the costs involved. For instance, if you are getting a salary from an employer, your filing likely will be easier. But, if you receive income through other means like capital gains, foreign income, or business earnings, your CA will have to put in more effort to ensure accuracy, which can lead to higher ITR filing fees for individuals.
CA’S Location and Their Level of Experience
Also, the location of the CA and their level of experience can determine the ITR filing charges by CA. For example, in Delhi or Mumbai, the cost of living is higher, so ITR file charges will likely be higher too.
Other Services Offered
Some Chartered Accountants not only file your return, but also provide support through tax planning, advisory, or even audit. If you wish to include these along with the return filing, you are likely to incur more costs.
Average ITR Filing Fees by CA: Breakdown of ITR Filing Fees for Individuals and Businesses
To give you a general idea, here’s a rough estimate of what you might expect to pay for ITR filing by a CA:
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ITR-1 (Salaried Individuals): ₹500 to ₹2,000 – This form is for individuals with a salary income, and the process is generally quick and straightforward. It’s the most common form for those with minimal deductions or additional income sources, leading to lower ITR filing fees for individuals.
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ITR-2 (Individuals with Capital Gains or Foreign Income): ₹1,000 to ₹3,000 – If you have income from sources like capital gains or foreign assets, your filing becomes a bit more complex, and the fees may increase slightly.
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ITR-3 (For Professionals or Business Owners): ₹2,000 to ₹7,000 – If you’re a freelancer, professional, or business owner, the process can involve maintaining books of accounts, tracking expenses, and possibly auditing, leading to higher fees.
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ITR for Businesses (Companies, LLPs): ₹5,000 to ₹15,000 or more – For corporations or LLPs, the filing is far more involved. This can include detailed financial statements, balance sheets, and other paperwork, leading to significantly higher fees.
How to Select the Best CA for Your ITR Filing
Before selecting a CA, you have to make sure that they have an appropriate level of understanding regarding your finances and have experience dealing with the kind of return you wish to file. Even when looking at different professionals, you might want to consider their fees, as the lowest priced option isn’t necessarily the best choice in any situation.
Ensure you inquire about the CA’s experience relevant to your type of filing. Also, check about any additional costs, particularly if they include services such as tax planning or audit assistance.
Final Thoughts
Despite the differences in fees that your Chartered Accountant will charge for filing your ITR, always perceive it as an expense toward accuracy and peace of mind. A competent professional will ensure that your return is filed on time, that you are compliant with the latest tax laws, and most importantly, that you claim all the deductions or exemptions you are entitled to. Understanding ITR filing charges by CA beforehand allows you to choose the best professional for your needs.
Therefore, when in doubt of whether or not you should do your own ITR filing, consulting with a Chartered Accountant may be the best course of action to take. Just be sure to know what the fees are from the start and select someone who is able to offer the best service that caters to your situation.
