A guide to becoming a Tax Consultant in India

Tax consultants utilize their knowledge and experience to help their customers effectively negotiate complicated tax regulations, rules of income, spending, deduction, and other possibilities. They have extensive knowledge of tax laws, planning, and compliance. They also provide tax consulting services to customers and help others identify ways to minimize their tax liabilities. 

You’ll realize that working as a tax consultant is a lucrative career path that you may enter to assist your customers and business partners in realizing their goals. This guide will help you to find the Qualifications and certifications required to become a tax consultant. 

Who is a tax consultant?

A tax consultant is a professional who can help people and corporations navigate the different regulations and legislation influencing the tax filing process. They must know the most recent advancements and modifications to tax laws and regulations. Tax consultants assist individual persons, small company owners, and big corporations. 

The profession of a tax consultant is a highly demanded job, and they normally receive a good salary, which improves their abilities and experience. Tax consultants remain in demand despite developments in the macro economy, as individuals and corporations must still pay their tax obligations. 

What does a Tax Consultant do?

A tax consultant can assist both individuals and businesses in reducing their tax liabilities. The roles and responsibilities of a tax consultant are as under:

Analyzing proposed laws

A tax consultant is a professional who assists the Tax Commission in reviewing and analyzing proposed laws related to taxes, fees, and the distribution of revenues.

Computing income taxes

The tax consultant must calculate income by figuring out the gross income amount. The tax is imposed per the tax rate following the computation as per the Income Tax Act. 

Financial Planning

The tax consultant must create a financial strategy, and this will assist the consumers in making decisions that are appropriate for their economic level. 

Evaluate methods used in making law

The duty of the tax consultant is to evaluate and analyze the various methods utilized in formulating and enforcing the law. Tax consultants must also analyze the law’s impact on the state’s revenue and administrative budget.

Documentation 

The tax consultant is responsible for providing administrative assistance to the many departments and agencies of the government.

Also read, benefits of pursuing an M.Com degree in 2023

How much do Tax consultants earn?

Tax consultants are very much in demand in India and they can earn an annual salary of INR 10 lakhs.

Skills required to become a Tax Consultant

1. Communications skills: Tax consultants need to be proficient communicators to give advice and explain tax strategy and implications. They must be responsive to the requirements and demands of their customers.
2. Statistical skills: A tax consultant should be proficient in statistics since they can organize and analyze enormous amounts of data to assist you in coming up with important business insights.
3. Supervision skills: A tax consultant must also possess the abilities required to make wise judgments. This position entails influencing the government’s economic and political choices.
4.  Analytical skills: Tax consultants are better equipped to evaluate the complexity of a problem in order to solve it effectively and provide projections when they have analytical skills. 
5. Problem-solving skills: In your role as a tax consultant, you will be looking at clients’ financial information and using strategic thinking skills to find areas where they may cut costs or boost earnings. 
6. Mathematical skills: Numerous numbers are involved in taxation. A tax consultant’s ability to forecast, compute percentages and interest, and account for gains and losses is essential to their job.

Steps to become a Tax Consultant

The main steps you’ll probably need to take to become a tax consultant are listed below:

1. Know about the profession in detail

Learn the fundamentals of Indian tax law and the function of a tax consultant. You can speak with reputable tax experts and practitioners to get your questions answered. When selecting to work as a tax consultant, ensure you know the duties involved.

2. Earn a degree

Most companies seeking tax consultants prefer candidates with at least a bachelor’s degree. It’s necessary to have a Bachelor of Commerce (B.com) degree to work as a tax consultant. A master’s degree, such as an M.com, can also help you succeed as a tax consultant.

3. Complete professional programs

There are several paths to becoming a certified tax consultant, and the majority of them need specialized education and credentials. One can directly become a tax consultant by enrolling in Chartered Accountancy and company secretary professional programs. 

4. Get work experience

You can get ready for a career as a tax consultant by getting work experience in a relevant sector. The best way to get sufficient professional experience is to work for a chartered accountancy firm, a consultancy business, or a financial services firm.  

5. Join a professional organization

Joining a professional tax organization might improve your profile and Resume. Professional organizations hold networking events and conferences that can help you advance your career and offer a variety of professional training and continuing education possibilities.

Also read, high-paying careers for commerce students in 2023

Gain in-depth finance and accounting knowledge with MUJ’s online B.Com and M.Com degrees

Advance your career by earning a UGC-entitled online B.Com from NAAC A+ accredited Manipal University Jaipur. You can study at your own pace from the most reputable professors through live online classes from the comfort of your home. Candidates who have enrolled for the online B.com or M.Com course on Online Manipal can access paid coursera courses for free, get placement assistance, 24/7 student support, extensive e-learning content, and more.

Online B.com and M.Com courses are excellent degree options for students who desire to become Tax Consultants without leaving their current work. 

Conclusion

Tax consultants are professionals that work with customers to minimize taxes and increase their revenue after taxes. While most tax consultants provide a wide range of services, they typically specialize in one or two types of taxes. Such professionals include income tax consultants, Business tax consultants, Goods and services tax (GST) consultants, and Property tax consultants. Tax consultants must be well-versed in all their chosen specialty sectors and must continue to get new certifications to broaden their proficiency and services.