Who Should Handle Your Taxes—A Chartered Accountant or a Tax Consultant? Here’s What You Need to Know
When tax season arrives or a financial decision looms, one big question often pops up: Who should I go to for help—a Chartered Accountant or a Tax Consultant?
At first glance, they might seem like they do the same thing. Both help with taxes, right? But dig a little deeper, and you’ll find they bring very different levels of expertise, responsibilities, and legal powers to the table.
Whether you’re a salaried employee, a small business owner, a freelancer, or an NRI trying to stay compliant in India, knowing the difference can help you avoid unnecessary costs, legal missteps, or missed opportunities. In this guide, we break down the roles, qualifications, and key differences between CAs and tax consultants—so you can make an informed, confident choice.
Who Is a Chartered Accountant?
A Chartered Accountant (CA) is a finance professional who is qualified under the Institute of Chartered Accountants of India (ICAI). Becoming a CA involves rigorous training, multiple levels of exams (CA Foundation, Intermediate, and Final), and mandatory practical experience.
Key Roles of a CA:
1. Statutory Audit & Assurance
CAs are legally authorized to conduct statutory audits for companies under the Companies Act, 2013.
2. Income Tax Filing and Representation
CAs can file complex ITRs and represent clients before the Income Tax Department and appellate authorities.
3. GST Compliance
From GST registration to monthly filings and audits, CAs ensure end-to-end compliance.
4. Financial Advisory & Planning
CAs also provide high-level consulting on business restructuring, valuation, mergers, and risk management.
5. Regulatory Compliance
They assist businesses in ROC filings, FEMA compliance, and RBI reporting.
For more details, check our Audit & Assurance Services or Company Compliance Services.
Who Is a Tax Consultant?
A Tax Consultant or Tax Advisor is someone who specializes in taxation laws and practices, but may not necessarily hold a CA qualification. Tax consultants can range from individuals with commerce degrees and certification courses to experienced practitioners who focus solely on tax advisory.
Key Roles of a Tax Consultant:
1. Income Tax Return Filing
Especially for salaried individuals, freelancers, and small businesses with straightforward tax situations.
2. Tax Saving Advice
Consultants help plan deductions under Sections 80C, 80D, 24(b), etc., to reduce tax liability.
3. Investment-linked Tax Planning
Suggesting suitable investments in ELSS, PPF, NPS, and other instruments.
4. TDS Return Filing and Compliance
Helping businesses file quarterly TDS returns and manage deductions.
5. Basic GST Support
Some tax consultants also offer GST registration and return filing for small traders and service providers.
Tax consultants are suitable for basic tax filing and planning needs. However, they cannot conduct audits or represent clients before higher tax authorities, unless registered as income tax practitioners under Rule 49 of the Income Tax Rules.
Key Differences Between CA and Tax Consultant
| Parameter | Chartered Accountant (CA) | Tax Consultant |
| Qualification | Must pass ICAI exams + 3 years of articleship | May have commerce degree, diploma, or certifications |
| Regulatory Body | Institute of Chartered Accountants of India (ICAI) | No central regulatory body (unless also a CA or lawyer) |
| Scope of Services | Comprehensive: audit, tax, finance, compliance | Mostly limited to tax advisory and filings |
| Audit Authority | Authorized to conduct statutory and tax audits | Not permitted to conduct audits |
| Representation Rights | Can represent before tax authorities and tribunals | Limited or no representation rights |
| Complexity of Work | Suitable for complex and high-value matters | Suitable for basic and low-risk tasks |
When Should You Hire a Chartered Accountant?
You should consult a Chartered Accountant when:
1. Your business needs a statutory or tax audit.
2. You’re looking for strategic financial advisory or funding.
3. You’re dealing with notices or scrutiny from the Income Tax or GST department.
4. You need help with complex business structures, mergers, or due diligence.
5. You are an NRI or HNI and need specialized tax and regulatory advice.
Need expert support? Explore our NRI & HNI Services or Business Registration offerings.
When Can You Work with a Tax Consultant?
You can consider a Tax Consultant when:
1. You have simple income sources like salary, interest, or freelancing.
2. You only need help with basic ITR filing or saving tax under Section 80C.
3. Your business is small-scale and doesn’t require audit or complex compliance.
4. You’re looking for low-cost, one-time tax advice.
However, it’s advisable to verify their experience and ensure they are well-versed in current laws.
Can a CA Be a Tax Consultant?
Yes—and much more.
Every Chartered Accountant is also a qualified tax consultant, but not every tax consultant is a CA. Think of it this way: a CA can handle simple tax filings and complex audits, while a tax consultant may only be able to handle the former.
So, if your financial situation is evolving or your business is growing, it’s always safer to work with a CA firm that provides end-to-end services with legal accountability.
Why Choosing the Right Expert Matters
In today’s digitized and surveillance-driven tax environment (AIS, TIS, 26AS), accuracy, compliance, and documentation are non-negotiable. A simple error in your return or a missed filing deadline can:
1. Trigger scrutiny or penalties
2. Delay your refunds
3. Impact your loan eligibility or credit score
4. Lead to interest charges or notices
Working with a qualified CA ensures you’re not just meeting deadlines—but doing so with confidence, clarity, and legal backing.
Final Thoughts
Choosing the Right Advisor Can Make All the Difference
Understanding the difference between a Chartered Accountant and a Tax Consultant isn’t just technical—it’s tactical. A tax consultant may suffice for straightforward returns, but when the stakes are high—like managing audits, navigating complex tax laws, or planning long-term financial strategy—a Chartered Accountant offers unmatched expertise, legal backing, and strategic clarity.
At PGA & Co. (PGACA), we don’t just file returns—we partner with you to build compliance, confidence, and control over your finances. Whether you’re a salaried employee, freelancer, business owner, or NRI, we help you stay legally compliant, financially efficient, and audit-ready—without overpaying a single rupee in tax.
Need clarity on who to trust with your taxes? Reach out to us today—and take control of your finances with confidence.