Should you hire a professional to file your ITR? Pros and cons explained

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Why certain taxpayers choose professional help

Filing an Income Tax Return (ITR) is simple for salaried individuals with a single source of income, but for others with multiple sources of income, capital gains, foreign assets, or business income, it will be complex. A tax consultant or chartered accountant can help you file your return properly, allow you to claim valid deductions, and reduce the chance of receiving a notice from the Income Tax Department.

Advantages of hiring an expert

A professional has a deep understanding of tax law and current revisions to ensure that all the requirements are met. They can guide you on where to invest with a view to saving taxes, correctly report different types of income, and avoid common errors like discrepancies in Form 26AS details. For someone with complex returns—e.g., NRI, freelancer, or investor of a high-value portfolio—a professional can help them navigate certain tax provisions and reduce chances of penalty for incorrect filing.

Flaws and expenses involved

Getting a professional to do it cost money, which can be anywhere between a few hundred to several thousand rupees based on the complexity of your return. For simple cases, the cost may not be worth it, given the options of free government websites and cheap online tax filling websites. Moreover, trusting someone else involves giving your sensitive financial information, which requires faith and good due diligence.

Do-It-Yourself filing

With the government's e-filing web portal and tax software, many people find it convenient to file their ITR themselves now. Most of these tools will walk you through step by step, automatically fill the data from your Form 26AS or AIS, and point out likely mistakes. If your tax case is straightforward—e.g., only salary income and normal deductions—the filing of the return yourself will be money-saving and a breeze.

Striking the right balance

The choice to use an expert will depend heavily on how complicated your tax situation is and how comfortable you feel about the process of filing. If your income streams are diversified or you've encountered tax notices in the past, professional assistance could be worth the cost. However, if you have a straightforward return, technology and free resources might suffice. Either way, the most important thing is accuracy and compliance.

FAQs

Q1. Can I alternate between self-filing and the use of a professional year by year?

Yes. There is no prohibition against changing your filing option. You can self-file one year and hire a pro the next, depending on your situation.

Q2. Does the use of a professional assure no tax notices?

No. Although a professional will reduce errors, tax notices will still happen as a result of mismatches, scrutiny, or random sampling by the department.

Q3. Is it secure to give my financial information to a tax adviser?

Yes, if you select a credentialed and reputable professional who abides by data protection procedures. Always check their credentials prior to hiring their services.