Like other governments, the Indian government also needs resources to carry out national work such as road construction, public hospitals., etc. All these expenditures are fulfilled from the taxes that the citizens of every country pay. to solve the issues related to the tax is handled by the tax consultant. But the issue is: How to become a tax consultant in india? What are the requirements to become a tax consultant?
A tax consultant is an advisor that can help people to determine the amount of the tax which has been detected from their wages, investments, houses. They can do this by determining their documents related to financial status.
In this article, we will discuss that How someone can become a tax consultant in India. What are the eligibility criteria? What kind of duties does he/she need to fulfill as a tax consultant? I hope those who are dedicated to becoming tax consultants are excited to know. So, without further delay let’s begin with the article.
Who is a tax consultant?
Income tax is considered as a direct tax because it is conducted on an annual basis and citizens need to pay the amount fixed for tax. Indirect tax is a customs duty, sales tax, etc. Implementing a tax is a difficult task because the income is changing. The government is always changing the criteria to apply taxes. That’s why to deal with all these situations a professional job like a tax consultant is necessary.
Tax consultant jobs are quite efficient for those who are good in communication, have a good knowledge of the law, and finance. Most of the tax consultants are working on a high post because of their skills and abilities.
What kind of qualification is required to become a tax consultant?
A tax consultant job requires some qualifications especially in the field of taxation. But it is not guaranteed for a student with a taxation degree in their hands. Nowadays a criterion is changed not only those who have a degree in the field related to taxation become a tax consultant but some other degrees also lead to the road of a tax consultant. There are some degrees listed for the job:
- MBA, CA.
- Tax consultant course.
- Personal development course.
To become a certified tax consultant the candidates must be passed the CPA test. Those who passed the test know to practice law and taxation efficiently. By completing the course, the aspirant must do some practical work. It will help them to gain practice which is very useful in practical life. They can handle the situation positively. On the other hand, candidates are also qualified for the job if they have a diploma in tax, commerce. But a bachelor’s degree is more preferable if someone wants to become a tax consultant.
Skill required to become a tax consultant
When someone decides to become a tax consultant a question arises in his mind related to the skills required. A profound tax consultant builds a relationship with clients.
The consultant must have a communications skill that helps the clients to become aware of the services, policies, etc. consultant work with the public so they need to be focused and listen actively to answer the questions of the clients. Critical thinking and complex problem-solving skills are also important in tax consulting.
When it comes to complex tax issues, the best tax consultant will find a logical solution to the problem. The success of tax consulting also requires excellent judgment and decision-making skills, mathematical skills, and the ability to measure performance and take corrective actions.
Processing complex tax information requires attention to detail and the ability to work with high precision. Aspirants can become profound through training and educational programs. Moreover, skills may vary based on specialization but the basic skills are necessary for the job.
Duties of the tax consultant
The duties that someone performs as tax consultant is described below:
Computation of Income Tax
The tax consultant must compute income by determining the gross total of the income. After the computation, the tax is applied according to the tax rate. After deduction of the tax from the gross total, the income is attained.
Financial planning
The tax consultant must make a financial plan. This will help the clients to make a decision that suits according to the attained income. This will help us to make our dream come true within a budget.
Filing of income tax returns
The tax consultant must need to files the income tax return of the clients to the organization of
India is known as an ITR.it contains information about the clients’ income and how much they pay tax over a year.
Filing of sales tax return
The tax consultant gives the proper information about filing a sales tax return to a client. The sales tax return is a tax return for taxpayers not only to provide detailed information about sales during the tax period but also to fulfill their sales tax obligations. The government requires people with a certain annual income to submit tax returns on time.
Computation of sales tax under state and central laws
The tax consultant is responsible to calculate the sales tax under the state and central laws. He or She is responsible to follow the principle while there is some sale or purchase of goods. The consultant has the access to set the interstate trade disputes. The state government of India determines the sales tax according to the financial statements. That’s why the sales tax varies in every state.
Formula to calculate sales tax is Total sales tax=cost of item*sales tax return.
Consultation about registration, the applicability of various tax laws
The tax consultant is responsible to give the complete information related to the tax applicable according to the laws. Clients can take consultation from them and they can guide them how the extra is applied according to their financial condition.
The process to become a tax consultant
The process to become a tax consultant in india is based on the qualification the candidates pursue. As we discussed earlier the job does need a special degree but the degree in taxation, law accounts raise the chance of the candidate to be selected as a consultant.
Steps involved in the process
The steps that are involved in the process are listed below:
Bachelors’ degree
A bachelor’s degree in taxation, accounting, finance, law, or any degree which is based on the 16 years education is required to get a job. Some programs allow students to graduate fast which are online. CPA programs sometimes have additional courses which are needed for the job. Those who have experience in tax also require a master’s degree to raise the chance of being selected.
Credentials required
All the applicants are not needed to have credentials but who have a special degree like CPA, EAs they required a credential to ensure the job. Tax professionals with the CPA degree must have credentials from the state board of accountancy. It is a license that specifies they are qualified for the CPAs exam. Credentials take time to earn. That’s why I always consider the process before applying for the job.
Start the job as a consultant
To start a job as a professional requires time. Factors that have an effect on starting a job for the first time are the jobs available, personal connection, and most important qualification as compared to other candidates.it takes months to start the job as a tax consultant.
Participate in classes related to a specific degree
Those candidates who are CPAs or EAs passed must need to participate in the further classes even if they are selected as a tax consultant. The number of needed continued CPAs vary. EAs must have 72 hours of continued education in at least three years. This additional training gives a lot of knowledge and skills that will help you to do a job efficiently.
Factors that will help to become tax consultant
There are some factors that are effective in order to become a tax consultant in india which are given below:
Knowledge about applicable taxes
Various types of the taxes are applicable on different vehicles, properties etc. Therefore, the complete information about the taxes and the solution to save them is the important factor.to gain the knowledge learning about the taxes is necessary. some training programs and certificated in the field of taxation, law is acquirable.
Training
Tax consultants must complete extensive tax law training before training to become a tax consultant, but there is some basic knowledge that allows him to participate in tax courses, which can be tax knowledge, professional capabilities and existing qualifications. Tax accountants in India are mainly people with legal, business, ICWA, CA, CS, mathematics, science or other similar accounting qualifications. If you are looking for the best CA coaching Classes in delhi, I would recommend you to go for the Chetan Malik Classes, it is one of the best ca coaching institute in delhi.
Selected course offers overpowering training
The course that candidates choose as a major must offer a continued training. few points are given below:
- Practical training along with the classroom is essential; it will help to implement the concepts more effectively.
- Use of the software related to accounting is necessary.
- Training in courses that will help in doing assignments in taxation and accounting is required.
- Effective plan for the taxation that will help clients and make them to do further investment.
- Good qualification, expert in a field will help us to become professional.
If you consider these factors then there is a high chance of you becoming a professional in a particular field.
 What kind of job offers to a tax consultant?
The jobs which have been offered to a tax consultant are described below:
 Accounting firms:
 Most of the tax consultants offer a job in accounting firms, they work for the public by providing a service related to accounts to other organizations. They provide the information about the tax to the clients.
Government agencies:
The consultant works as in a government agency either they are local, state, and federal. The IRS hires them to calculate the reviews on policies, procedures, services and conduct education programs of the taxpayer.
Organization of law:
Tax consultants with their practice work in a law organization. For a legal form, the tax conditions are very complex and difficult. They can work as a consultant by giving the knowledge on the situation related to the law.
Work as a tax consultant in a special firm:
Few consultants work in a firm which is specialized in a specific area such as tax law, international tax laws, payroll tax laws. That’s why they have a thorough knowledge of the firms.
Corporate tax offices:
Most international corporations have their own tax offices in which they hire a tax consultant. They perform various tasks such as tax planning, research for the company.
ClosureÂ
A tax consultant is a profound job if someone chooses a career. Certain criteria need to be fulfilled such as must-have degrees in taxation, accounts, law. Else if they have passed CPAs or EAs they can become a tax consultant. This topic is about how to become a tax consultant in India. I have discussed the process, qualifications, skills, jobs related to becoming a tax consultant. This article guides you if you ever want to become a tax consultant in india.