Tax consultants use their knowledge of tax laws and regulations to prepare, file, and manage the taxes of individuals and organisations. Learn more about what you need to get started.
A tax accountant—a tax consultant or advisor—handles the taxes for individuals, organisations, companies, or governments. Unlike an accountant who oversees all financial matters, you’ll specialise solely in taxes in this role and follow the tax laws set forth at the central, state, and local levels.
While income tax preparers also prepare and file taxes for clients, a tax accountant's qualifications and expertise extend beyond this so they can provide ongoing and long-term tax assistance to the people and entities they serve.
As a tax practitioner, your regular tasks and responsibilities might include:
Preparing central and state tax returns
Offering tax planning advice
Helping clients save money when it comes time to file taxes
Creating annual tax-related plans for clients to follow throughout the year
Protecting clients from paying more than necessary
Making sure clients meet quarterly and annual tax deadlines
Advising clients about the impact of tax laws and liabilities
Arranging tax audits with authorities when needed
The average annual salary in India for tax accountants is ₹7.4 lakhs, with an estimated take-home pay of ₹45,597 to ₹46,678 per month [1]. Your salary will vary depending on your education and experience level, the industry you work in, and the area you live in.
Since tax consulting is a subspecialty of accounting, some chartered accountants also work as tax accountants. Otherwise, different types of tax consultants are distinguished by the industry they work for or the clients they focus on. Some examples include:
Forensic tax consultants investigate individuals and businesses in anticipation of a legal proceeding.
Management tax consultants handle financial and tax matters for organisations and businesses.
Personal tax consultants manage taxes for individuals.
There are no specific degree qualifications to become a tax consultant, although there may be specific requirements to get hired by a firm or tax organisation. While degrees aren't always required, most consultants have diplomas in accounting or finance. Tax consultants who take courses in tax law are particularly well-prepared for their profession. Some employers seek out tax consultants with master's degrees in accountancy or business administration.
Many tax consultants are certified as well. Earning certification helps build your skill set and validate your knowledge to potential employers. Here are some popular options.
Chartered Accountant: Becoming certified through The Institute of Chartered Accountants of India (ICAI) allows you to become a Chartered Accountant. Unlike tax consultants, CA credentials are regulated and usually require about four years to complete.
Certified Public Accountant (CPA): The American Institute of Certified Public Accountants in the US is the world's largest professional organisation of accountants, and this certification has global recognition.
Certified Management Accountant: This option is offered by the Institute of Management Accountants (IMA) and prepares enrollees for a career in accounting management.
Tax practitioners deal with complex, confidential data that is regulated by law. If you have a keen understanding of mathematics, pay attention to detail, and enjoy serving others in a way that helps them flourish financially, you may be well-suited for a tax accountant role. Take a look at the specific skills you'll need:
Technical skills
Knowledge of the latest central, state, and local tax laws and regulations
Proficiency in Microsoft Excel and tax preparation software
Understanding of basic arithmetic and statistics to calculate complex tax information
Workplace skills
Attention to detail to prepare error-free documents and tax returns accurately
Verbal and written communication skills to interact with clients effectively
Organisational skills to keep financial records easily accessible for reference
Time-management skills to meet important deadlines
Critical thinking and analytical skills to evaluate data, uncover fraud, and minimise tax liability
As you complete your studies and gain experience as a tax professional, you will likely find that your interests and abilities gravitate toward a certain industry or clientele. Continue to refine your skills in your chosen specialities, hone your customer service skills, and stay on top of tax law and requirements.
Your career path may also lead you to a different accounting career, such as a management accountant, public accountant, budget director, or internal auditor. Some tax accountants also progress to become top executives and financial managers of corporations, including financial vice presidents, treasurers, controllers, and chief financial officers.
Explore whether a career in accounting may be right for you with a beginner-friendly course from a top university, like Introduction to Financial Accounting from the University of Pennsylvania. Advance your existing skills and learn more about what it’s like to earn your master’s of accounting online.
1. AmbitionBox. "Tax Accountant Salary in India, https://www.ambitionbox.com/profile/tax-accountant-salary." Accessed 27 November 2024.
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