Direct Tax Services
Filing, Notices, Assessments & Appeals

Direct tax is not just about filing returns — it's about structuring income correctly, staying compliant year after year, and knowing exactly what to do when the Income Tax Department sends a notice. At N D Savla & Associates, our Direct Tax Services cover the full lifecycle of income tax compliance: routine filing, proactive planning, and — when needed — handling scrutiny, assessments, and appeals with a properly documented, defensible position.

Direct tax refers to tax paid directly by the person or entity on whom it is levied — primarily income tax and capital gains tax under the Income Tax Act, 1961. Below we cover what direct tax services involve, who they serve, how India's direct tax administration has evolved, our process for handling notices and assessments, and answers to common questions.

The Income Tax Act, 1961 has governed India's direct tax framework for over six decades, but the way it's administered has changed dramatically, particularly in the last two decades.

Before the 2000s, assessments were conducted almost entirely in person — taxpayers or their representatives met assessing officers directly, and much depended on the quality of that in-person interaction and the documentation brought to the meeting.

The introduction of e-filing in the mid-2000s began shifting return filing online, followed by progressively more sophisticated data-matching between tax returns, TDS records, and financial transaction reporting, which meant discrepancies were flagged automatically rather than discovered only during a manual review.

The first step is identifying exactly which section the notice cites, since the required response differs significantly — a Section 143(1) intimation about a processing mismatch needs a very different response from a Section 148 reassessment notice alleging escaped income. Reading the notice carefully, rather than reacting to the fact of receiving one, is the most important first step.

The second step is gathering supporting documentation before drafting any response — bank statements, investment proofs, and any correspondence relevant to the specific point raised. Under the faceless assessment system, a well-documented written response is often the single biggest factor in how quickly and favourably a matter resolves, since there is no opportunity to clarify points verbally with the assessing officer.

We walk clients through the specific sections relevant to their situation rather than expecting them to navigate the Act unassisted, particularly when a notice cites a section they haven't encountered before.

Advance tax is often treated as something only businesses need to worry about, but any taxpayer — including salaried individuals — whose total tax liability after TDS exceeds the specified threshold is required to pay advance tax in instalments through the financial year. Missing these instalments triggers interest under Sections 234B and 234C, which, while not severe individually, compounds over the year if the shortfall isn't corrected.

This is particularly relevant for salaried individuals with significant capital gains, rental income, or freelance earnings that aren't fully captured by employer TDS. We typically recommend a mid-year check-in specifically to estimate whether an advance tax instalment is due, rather than waiting until the annual return to discover a shortfall that has already accrued interest.