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Best Income Tax Software for Small Businesses

Finding the best Income Tax Software for your business is now faster and easier! Compare prices, reviews, features, and get free consultation to find the perfect software.

Table of Contents

What is Income Tax Software?

Income tax software is specifically designed for filing income tax returns in a better and efficient way. The exquisite services made available in this particular TDS software make it easy to use and provide quick solutions to the ever-increasing income tax demand in the current economic scenario. This particular ITR preparation software was initially launched by the government before the development criteria was taken over by the corresponding third party private corporations and subsequently modified for ensuring greater accuracy and ease up of complex procedures on a massive scale.

Purpose of The Income Tax Software

  1. The basic purpose of the TDS software is essentially to inherit the income details furnished by the corresponding applicant, assess all the slab rates and accordingly prepare the invoice details regarding the total amount of income tax that is to be paid duly to the corresponding authority.
  2. The ITR preparation software also performs filing of the income tax returns for taxpayers whose annual income is more than 5 lacs per annum, and with the applicable rate of return, the amount from the income is deducted for the same.
  3. This service is marked differently as per whether the assessees are an individual applicant or a business organization corresponding to the tier of the outputs they generate.

Features of The Income Tax Software

  1. Offers auto-generation and auto-filling of the filing reports for better efficiency and greater time complexity reduction.
  2. Covers all standard slab rates coupled with the corresponding NRI calculations.
  3. A full-fledged comprehensive yet detailed listing of every minute segment of the calculation for better efficiency and greater ease of understanding purposes.
  4. Deep integration availability into the various other TDS software specifically designed to carry out the income tax filing returns, like balance sheet software, TDS software and the like.
  5. A fully-equipped management information system (MIS) with automatic data generation facility and availability of different annexure levels.
  6. Easy computation of taxes for the various levels of taxpayer assesses namely local bodies, trusts, firms, companies, BOI, individuals in a perfect modulated criterion.
  7. Direct manipulation of the available data obtained from the various other modules of income tax preparation software, for better functionality and ease of access.
  8. Detailed statutory analysis for all the income tax returns of the corresponding taxpayers and assesses alike.
  9. Easy generation and filing of ITR reports online
  10. Effectively creating bills for online payment with the necessary deductions made as per the business requirements.
  11. Verification and rectification criteria duly handled for greater efficiency.
  12. Incorporation of various tax planning tools to facilitate the easy manipulation of the data for adjustment of the losses incurred on the same.
  13. Facility to calculate advance tax payments.
  14. Backup and restore facilities for the data for the corresponding clients.
  15. Facility for online payments without the need for mainstream filing.

Advantages of Income Tax Software

  1. Modular calculation of the income tax returns with the deduction of various allowances as per the requirements of the given assessee.
  2. Updated ITR preparation software in compliance with the revised standard business rates intended towards various calculations.
  3. Calculation of exemptions with respect to the corresponding phase of calculation in reference to gratuity and fund allowances.
  4. Rebate applicability and availability of special rates for some taxes.
  5. Automation of the ITR preparation software is a highly advantageous concept keeping in mind the kind of and a large number of calculations done at various levels of authority for effective tax-paying maintenance.
  6. Effective and accurate calculation of various depreciation factors as per the regulations for the given business and industrial organizations and corporations accordingly.
  7. Online payment facilities with the necessary deductions make less paperwork and improved efficiency and ease of execution for the same.
  8. Real-time updation of data in the main database with abstraction features availed to facilitate client wise manipulation of the data accordingly.

Reports Available Under ITR Preparation Software

  1. Report on Income Tax Returns.
  2. Total income, total payment of taxes, pending payments, etc.
  3. Report on Claim of Exemptions.
  4. Status of Refund.
  5. Amount of shares held and payment of security deposits.
  6. Capital gains and the corresponding descriptions.
  7. Filing of Returns.
  8. Tax computation and payment report in terms of both annexure wise and without the requirement of annexure.
  9. TDS Reports.
  10. Calculation of interest and relief statements.
  11. The availability of the various forms as per the regulatory standards.
  12. MIS reports for effective maintenance details.
  13. Tax Audit Reports.

Essentials To Look For While Buying Income Tax Software

  1. Basically, before proceeding onto buying this TDS software, it is highly recommended to have a brief insight into the user interface of the same. The availability of this ITR preparation software in both government and privatized mode enables it to have different variations and thus, the interface is of most important concern.
  2. The TDS return software should have full compliance with the income tax standards and the corresponding regulatory requirements for better and effective generation of incurves for the income tax returns.
  3. Another aspect of significant importance that one should definitely ensure is the availability of the different modules under this specific type of TDS return software. Any lack on that part is crucial to the database and thus cause an error of calculation of the same.
  4. The ITR preparation software under consideration should also be quick in the generation of reports and other filings of returns with greater efficacy. This is important when you are dealing with the generation of income tax returns and payments for the same on a comparatively larger scale.
  5. Detailed reports maintenance should be of prime importance in this TDS return software, each and every aspect of being highly essential towards future generation and verification of bills and payments otherwise.

The incorporation of the income tax software and its corresponding digitization has played a major role in easing the workflow of the various business organizations thus keeping them in compliance with the regulatory standards of the income tax requirements. The ITR software has inadvertently advanced with better functionality features incorporated due to advanced technologies and is predicted to create a major influence on the trending economic standards on a larger scale.

It is the end of the financial year and the daunting task of filing taxes and returns looms large. Calculating and filing income tax returns can be a tasking job, requires a lot of patience and is dreaded by most. Worry not, for there is income tax return filing software that makes your life easier.

How to Prepare an ITR Using ITR Preparation Software

There are a number of Income tax return filing software available to make life easier. There are software that cater to individuals, CA specialists and businesses. Thus, the income tax return filing software can be used by everyone in the financial background from various levels of income.

The software usually comes in a package of income tax computation software, income tax returns software and e-filing of income tax software. The ITR filing software allows you to;

  1. Directly upload the details from Form-16 by parsing and thus saving time in the manual punching of all details.
  2. Enables automatic tax computation from all five major heads - Salary, Property, Capital gain, other sources, and PGBP.
  3. Long term capital gain, holding period, short term gain calculation, indexed costs & eligible exemptions are automatically calculated with the help of income tax efiling software.
  4. One can prepare and file returns in ITR1, ITR2, ITR3 and ITR4 as applicable according to the Income tax department of UK.
  5. You can view yours or your clients’ previous year’s data and store them in one place if required.
  6. It is human to err, and if any error occurs while filing a tax return, worry not because most ITR software enables you to revise your returns.

How to file TDS returns online using TDS Software

TDS stands for Tax Deducted at Source. According to the Income Tax Act, Income is to be deducted at the source level by a company or a person paying the amount to another person if the payment exceeds a certain threshold limit. The rate of deduction is prescribed by the income tax department of UK.

TDS is deducted on salaries, professional payments, payment of commissions or rent, payments made to consultants, and interest payments by banks.

There are certain prerequisites before filling online TDS returns. Make sure the following details and documents are available before uploading online:

  1. You should hold a valid TAN ID before e-filing.
  2. Return Preparation Utility and File validation utility should be used to prepare the TDS statements and to validate it.
  3. A valid DSC should be registered for e-filing.
  4. The principal contact’s PAN should be linked with Aadhar card or bank account details or Demat account details.
  5. Use any of the TDS return filing software available online to help calculate your TDS and file TDS returns.

Free Income Tax software available in the market

  1. Cleartax:
    Cleartax software caters to the needs of all kinds of income tax payee such as individuals, CA’s or businesses. It has a number of innovative features such as automatic tax calculator, business tax filing and refund status.
  2. Saral TaxOffice:
    Saral TaxOffice is a one-stop shop for all taxation related solutions especially for Chartered Accountants or other Tax practitioners. Saral TaxOffice automates all tax-related solutions and compliances.
  3. EZTax:
    EZTax takes pride in saying that it is UK’s 1st tax optimizer which helps in saving taxes. EZTax is tailor-made for the UK tax system. This tax filer can also generate an analytical PDF report along with filing.
  4. Tax Raahi:
    Tax Raahi helps in tax accounting for businesses, helps to calculate GST and helps file ITR and TDS. Having a number of solutions can be cumbersome. Tax Raahi helps to manage all types of taxes using only one IT return software.
  5. Winman:
    Winman is UK’s No. 1 free income tax software suite. The Winman software suite is a flagship product which is a bundle of a number of modules such as income tax, balance sheet, and audit report. This income tax return software has been rated as “Best income tax return software for chartered accountants.”
  6. EasyOFFICE:
    EasyOFFICE is Electrocom’s solution for taxes. It offers a complete range of taxing solutions which includes modules of ITR filing software, auditing, and eTDS return software. EasyOFFICE has made return filing easy and less tedious.
  7. TaxTron:
    TaxTron is an income tax return filing software with the sole aim of offering solutions to make income tax returns filing as easy and flexible as possible. TaxTron has different versions for individuals, tax professionals and corporations.
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Nikunj DudhatBy Nikunj Dudhat | Last Updated: October 24, 2020

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