Taxation is one of the most important aspects of finance. Consequently, it is also one of the most coveted career spaces that most finance students seek to pursue.
(mostly because of the abundance of career opportunities along with career growth in the domain)
In this piece, we'll be sharing some of the most vital information that you need to know to pursue a career in taxation!
Questions like:
- How to pursue a career in Taxation?
- How taxation is better than other related fields like Auditing and financial analysis?
- How rewarding a career in taxation can be?
- What's the scope of future growth in the profession?
And more will all be answered as you breeze through this article.
Taxation is a field with a plethora of opportunities
Employment in taxation is a career that is evergreen, fairly stable, and rapidly growing. We're all aware of how complicated tax systems can be.
There are two types of taxes: direct and indirect. A direct tax is collected directly from individuals, such as income tax, wealth tax, property tax, and so on, whereas an indirect tax is one that you pay when you buy certain goods or use certain services.
Value-added tax (VAT), sales tax, customs duty, and excise duty are examples of indirect taxes.
People frequently seek out experts to assist them in determining how much tax they must pay, filing their tax returns, and locating legal ways to save money on their taxes.
So, the relevant skills, formal education, and experience, as much as possible, are required to make it big in this industry. Not to mention that your determination and discipline will also play a big role in shaping your taxation career.
Types of Career in Taxation
There are two parts of a Career in Taxation which are mentioned below:
Compliance
The subtleties of tax are compliance - the paperwork. One important compliance task is to prepare and file your client's tax return under current regulations.
Calculations, accounting, and paperwork may be required for things like establishing family trusts or estate planning, depending on your specialization.
You can expect to focus on compliance at the start of your career as you learn the ropes.
Consultancy
The problem-solving side of the tax business is consulting.
Tax professionals ensure that their clients' finances are tax-efficient (simply put, they find ways for their clients to pay the minimum tax possible).
It entails being well-versed in tax regulations and being able to take advantage of all available tax structures, breaks, and loopholes.
You can serve your client in different ways depending on your expertise in the field.
a. Business tax consulting:
Handles all tax issues that businesses face daily. You could also serve as your client's tax and finance department.
b. Income tax consulting:
Individuals and corporations may be among your clients.
c. Property tax consulting:
Handles cases involving agricultural lands, residential and commercial properties, and other property tax rules and regulations.
d. Sales tax consulting:
Knowledge of VAT and sales tax issues is required. As a sales tax consultant, you can provide your clients with information, advice, or clarification.
Responsibilities in taxation profile
Below are the few responsibilities associated with a career in Taxation:
- Understand your business: They figure out how your business works and makes money.
- Save you money on taxes: They find legal ways to lower your tax bill.
- Spot tax risks: They warn you about potential problems with the taxman.
- Use their knowledge for you: They apply their tax and law skills to your benefit.
- Do your tax returns: They fill out those confusing forms for you.
- Research tax issues: They answer your questions about taxes and rules.
- Predict your tax bill: They guess how much you'll owe the government.
- Deal with tax audits: They help you if the government checks your taxes.
- Train others on taxes: They teach other people in your company about taxes.
Formal education is a stepping stone
The typical path to pursuing a career in taxation has been to graduate and then a post-graduation in commerce and then land a job.
However, with rising competition, some extra efforts have become necessary. Certification courses on GST can be achieved to make you a cut above the rest of the competition.
Moreover, LLB or LLM students can specialize in Taxation Laws and enter the field. A bachelor's degree in management studies (BMS) or an MBA with a finance specialization may also give you an advantage in the field.
In India, tax consultants are mostly law graduates or people with professional qualifications from The Institute of Cost Accountants of India, such as Chartered Accountancy (CA), Company Secretary (CS), or Certified Management Accountancy (CMA) (ICAI).
Students pursuing a B.Com or M.Com from IGNOU can also specialize in Finance and Cost Accounting through ICAI.
Courses in taxation
Whether you go for private jobs or government ones, skill-building is supremely important.
It is wise to enroll in upskilling courses and training programs to become adept at Taxation and gain a thorough insight into the field.
Though government jobs require certain exams with three to four stages or more, you should still be able to breeze through most job interviews if you comprehensively study and grasp the fundamentals of the following courses:
- Diploma in Accounting & Taxation.
- Diploma in Service Tax.
- Diploma in Taxation Law.
- Advanced Diploma in Taxation.
- Bachelor of Commerce in Taxation.
- Bachelor of Commerce in Tax Procedure & Practices.
- Master of Commerce in Finance and Taxation.
- Master of Commerce in Accounting and Taxation.
- Post Graduate Diploma in Taxation.
- Post Graduate Diploma in Tax Management and Tax Administration
The relevant skills for taxation
Check below these relevant skills required for the pursuit of a Career in Taxation:
1. Communication
You must be able to explain intricate regulations to non-experts if you work in tax.
Clear verbal or written communication is essential.
2. Numeracy
You don't have to be a math whiz to get into Tax; consequently, humanity students can also pursue a career in Taxation.
However, you must be comfortable with numbers.
3. Time management
Time Management is necessary for a professional workload if you want to be successful.
One should prioritize tasks, meet deadlines, and take personal responsibility for their career.
4. Business Awareness
Employers want employees who are genuinely enthusiastic about their jobs.
Commercial awareness demonstrates an interest in your field and the ability to keep up with changes as they occur.
5. Skills in problem-solving
You must regularly use your creativity in the field of taxation.
For example, if you want to help a client save money on taxes, you could suggest trusts and tax-free investments.
It's up to you to come up with a creative solution.
6. Details are important
The regulations in tax law say exactly what they mean, and you must interpret them correctly.
This necessitates paying close attention to every word.
7. Organization
Throughout your Tax career, you will be faced with large, complex tasks.
You must be able to break them down into sections that you can work through sequentially.
The path to government jobs
Different Types of Tax Professionals:
1. Tax accountants, analysts, advisors, recruiters, examiners, managers, collectors, and revenue managers: These roles involve working with different aspects of taxes at various levels within companies and organizations.
2. Business, income, and property tax consultants: These professionals provide specialized advice and help with specific tax types.
3. Tax lawyers, counsels, and defense attorneys: They assist with legal matters related to taxes, representing clients in court if needed.
4. Top administrative job in India: Chosen through the UPSC exam, IRS officers have significant responsibilities.
5. Collecting taxes: IRS officers oversee the collection of direct and indirect taxes.
6. Administration and policy: They handle administrative work and contribute to developing tax policies.
7. Career progression: Start as Assistant Commissioners and work their way up to Chief Commissioners.
8. High-level opportunities: Can be elected to government and financial institutions positions.
9. Less competitive exam: Staff Selection Commission test is easier than UPSC.
10. Non-gazetted government position: Appointments in CBDT and CBEC Commissionerates.
11. Eligibility: Graduates aged 20-27 with high typing speed (8,000 keystrokes per hour).
Remuneration
Government jobs in the field of taxation pay well and provide a lot of security.
Tax professionals can also find stable and well-paying jobs in corporate accounting departments or with accounting firms.
Tax consulting has a lot of advantages. A newcomer to the field can easily earn Rs 3 lakh to 5 lakh per year, but as one's qualifications and experience grow, so does one's income.
Keep going on
A career in taxation can provide you with the business experience you need to advance into business consulting. Moving sideways into a related accountancy role can be difficult - you may need to re-qualify or accept a significant pay cut.
There are options for taking your accounting career elsewhere once you've gained some experience.
You could work for the government, which provides a good work-life balance and benefits.
Alternatively, you could go it alone. As a freelance tax professional, you're likely to work with individuals or small businesses.
You can work from home and set your hours.
Forget just crunching numbers! Strong communication skills are the real gold in tax.
Clear explanations of complex laws? Clients love you for it. Meticulous with details?
No tax loophole escapes you. Build a bright, stable career in this ever-evolving field.
To apply for fresh jobs in taxation, visit the Jobaaj job portal.
