Income tax filing returns is a significant process for all, hoping that you have decided whether to do it by yourself or paying a professional.
This post will highlight the pros and cons of paying a personal tax advisor; let’s find out what is beneficial for you.
- Relief is that your ITR being accurately filed
One in-security is always there while filing returns is whether it is done correctly; any mistake can attract the penalty or even audit. With the expert on your side, you are relieved from this headache of committing any error.
- Personal advice during calculations
While doing your calculations, you should be aware of the deductions you are eligible to reduce your tax liability. However, for commoners like you, it’s very confusing just by going through the Income Tax website, and therefore a personal tax advisor comes in handy. He/She will guide you correctly about working, especially if you are an entrepreneur or self-employed.
- Fees paid may be deductible from tax
The fees paid to an expert who files your returns may be waived off from your accounts under miscellaneous expenses if you don’t have much of a miscellaneous amount to show.
Other examples of miscellaneous expenses are the reimbursements you receive from business expenses or expenses incurred for upgrading yourself, like doing some course that helps in generating income, etc. This expense head should be equal to 2% of your gross calculated income for availing this deduction of fees paid.
Now that we have checked the pros of hiring an expert, let us also check some cons of paying an expert.
- Extra expenditure
Employing an expert for filing returns can cost you dearly as you need to pay their fees, but if you wish to save this expense, explore using easy-to-understand income tax software.
- Possibility of Fraud
The hiring of an expert professional with the right credentials and knowledge is significant; otherwise, you may fall into the trap of fraudulent advisors who may do wrong calculations while risking your personal information.
- An expert can also go wrong
Just because you have hired a professional doesn’t mean he may always be right; you may still have to go through her/his work. And it doesn’t make sense to involve your time and energy too after hiring an expert.
Hiring a personal tax advisor to file your ITR makes sense though you need to be careful who you choose.