Demystifying Schedule Manufacturing Account: Simplify Your ITR-3 Filing

Filing your income tax return (ITR) is a critical annual task for businesses, and for those involved in manufacturing, accurately reporting financial information is paramount. ITR-3, the specific form for individuals and Hindu Undivided Families (HUFs) with income from a proprietary business or profession, requires a detailed breakdown of manufacturing activities in a dedicated schedule.

In this comprehensive guide, we'll delve deep into the intricacies of Schedule Manufacturing Account in ITR-3, simplifying the process and equipping you with the knowledge needed for a smooth and compliant filing.

Who Needs to File the Schedule Manufacturing Account in ITR-3?

You need to file Schedule Manufacturing Account in ITR-3 if you meet all of the following criteria:

1. Taxpayer Type: You are either an individual or a Hindu Undivided Family (HUF).
2. Income Source: Your primary source of income is from a proprietary business or profession engaged in manufacturing activities.
3. Income Level: Your total income exceeds the basic exemption limit set by the Indian government for the relevant financial year.

Key Points to Note:

• Proprietary Business: This means you are the sole owner of the business.
• Manufacturing Activities: This includes any business involved in the production or processing of goods from raw materials or components.
• Basic Exemption Limit: This limit varies depending on factors such as your age and residential status. Refer to the latest tax regulations for the applicable limit.

Who is NOT Required to File Schedule Manufacturing Account?

• Individuals or HUFs with income primarily from sources other than manufacturing (e.g., salary, capital gains).
• Individuals or HUFs whose total income is below the basic exemption limit.
• Partnership firms or companies engaged in manufacturing (they have separate ITR forms).

Understanding the Schedule Manufacturing Account

The Schedule Manufacturing Account is now divided into two parts:

1. Debits to Manufacturing Account

This section captures all the costs and expenses directly related to the manufacturing process. These costs are essentially what you invest to produce your finished goods. Let's delve into the components:

a) Opening Inventory:

• Opening Stock of Raw Material: The value of raw materials (e.g., wood, steel, fabric) you have on hand at the beginning of the financial year.
• Opening Stock of Work-in-Progress (WIP): The value of partially completed goods still in the production process at the start of the year.

b) Purchases:

• Raw Materials: The total cost of raw materials purchased during the year, including taxes and transportation costs.

c) Direct Wages:

• Wages: The salaries and wages paid to workers directly involved in the manufacturing process, such as machine operators, assembly line workers, and production supervisors.

d) Direct Expenses:

• Carriage Inward: Costs incurred to transport raw materials to your factory.
• Power and Fuel: Expenses for electricity, gas, coal, or any other fuel used in manufacturing operations.
• Other Direct Expenses: Any other costs directly attributable to manufacturing, such as royalties, job worker charges, or specific packaging costs.

e) Factory Overheads:

• Indirect Wages: Salaries and wages of factory staff who are not directly involved in production but support the manufacturing process (e.g., maintenance crew, quality control personnel).
• Factory Rent and Rates: Costs for renting or owning the factory premises, including property taxes.
• Factory Insurance: Premiums paid for insurance coverage of the factory building, machinery, and inventory.
• Factory Fuel and Power: Expenses for electricity, gas, or other fuels used for factory lighting, heating, and other non-production activities.
• Factory General Expenses: Miscellaneous expenses incurred for the factory's operation, such as cleaning supplies, safety equipment, and security services.
• Depreciation of Factory Machinery: The systematic allocation of the cost of factory machinery over its useful life.

Why Debits are Important:

The total of all these debits represents the total cost incurred in the manufacturing process. By meticulously tracking these costs, you gain insights into:

• Cost of Goods Manufactured (COGM): This is a key figure for calculating your gross profit.
• Cost Control: Identifying areas of high expense can help you implement cost-saving measures.
• Pricing Decisions: Understanding your production costs is essential for setting competitive and profitable prices.

2. Closing Stock

This section accounts for the value of unfinished and unsold inventory at the end of the financial year. Essentially, it's what remains in your factory or warehouse that you haven't yet sold or turned into finished products.

a) Closing Stock of Raw Materials:

• This represents the value of raw materials that you purchased during the year but haven't yet used in the production process.
• It's important to accurately assess the quantity and value of these remaining raw materials to avoid overstating or understating your expenses and, ultimately, your profits.

b) Closing Stock of Work-in-Progress (WIP):

• This includes the value of partially finished goods that are still in various stages of production at the end of the year.
• Valuing WIP can be complex, as you need to estimate the percentage of completion and allocate costs accordingly.

Methods for Valuing Closing Stock:

There are various methods to value closing stock, and the choice depends on factors like industry norms, accounting practices, and tax regulations:

1. FIFO (First-In, First-Out):

Concept: FIFO operates on the premise that the inventory items purchased or produced first are the first ones to be sold. Think of it like a queue – the first items in line are the first ones to leave.

Calculation:

• The cost of the oldest inventory items is used to calculate the cost of goods sold (COGS).
• The cost of the newest inventory items remains in the closing stock.

Advantages:

• Logical Flow: Aligns with the natural flow of goods in many businesses.
• Higher Profits in Inflationary Environments: As prices rise, older, lower-cost items are used to calculate COGS, resulting in a higher gross profit.
• Simpler Inventory Management: Easier to track inventory flow and identify slow-moving items.

Disadvantages:

• Lower Profits in Deflationary Environments: If prices fall, older, higher-cost items are used to calculate COGS, resulting in a lower gross profit.

2. LIFO (Last-In, First-Out):

Concept: LIFO operates on the opposite principle of FIFO, assuming that the most recently purchased or produced items are the first ones to be sold.

Calculation:

• The cost of the newest inventory items is used to calculate COGS.
• The cost of the oldest inventory items remains in the closing stock.

Advantages:

• Tax Benefits in Inflationary Environments: Higher COGS due to the use of newer, higher-cost items can result in lower taxable income and tax payments.

Disadvantages:

• Not Allowed Under Indian GAAP: LIFO is not permitted under Indian Generally Accepted Accounting Principles (GAAP) or Ind AS.
• Lower Profits in Inflationary Environments: Higher COGS can lead to lower gross profit.
• Less Realistic Inventory Flow: Doesn't always reflect the actual movement of inventory in many industries.

3. Weighted Average Method:

Concept: This method calculates an average cost for all units in inventory, taking into account both the cost of older and newer items.

Calculation:

• Weighted Average Cost per Unit: Total Cost of Goods Available for Sale / Total Number of Units Available for Sale
• COGS: Weighted Average Cost per Unit x Number of Units Sold
• Closing Stock: Weighted Average Cost per Unit x Number of Units Remaining

Advantages:

• Smooths Out Price Fluctuations: Reduces the impact of price changes on profits.
• Simpler Calculation: Easier to calculate than FIFO or LIFO.

Disadvantages:

• Less Accurate in Volatile Markets: May not reflect the true cost of goods sold if prices fluctuate significantly.

Why Closing Stock Matters:

• Impact on Profit: The closing stock value directly affects your cost of goods sold (COGS) and, consequently, your gross profit. A higher closing stock will lower your COGS and increase your profit, while a lower closing stock will have the opposite effect.
• Tax Implications: Incorrectly valuing closing stock can lead to misrepresentation of income and potential tax issues.
• Inventory Management: Understanding your closing stock helps you assess inventory turnover, identify slow-moving items, and make informed decisions about production and purchasing.

The ITR-3 form is designed to simplify the tax filing process by automating certain calculations based on the data you enter. In the Schedule Manufacturing Account, these automatic calculations play a crucial role in determining your overall manufacturing costs and the value of goods ready for sale.

1. Total of Debits to Manufacturing Account:

• Calculation: The ITR system automatically adds up all the individual debit entries you provide in the "Debits to Manufacturing Account" section. This includes your opening stock of raw materials and WIP, purchases, direct wages, direct expenses, and factory overheads.
• Significance: This total represents the overall cost incurred in the manufacturing process throughout the year. It's a vital figure for understanding your production expenses and calculating the cost of goods manufactured (COGM).

2. Cost of Goods Produced (COGM) - Transferred to Trading Account:

• Calculation: To calculate COGM, the ITR system subtracts the closing stock of raw materials and WIP from the total of debits to the manufacturing account.
  • COGM = Total Debits to Manufacturing Account - Closing Stock (Raw Materials + WIP)
• Significance: COGM represents the total cost of finished goods produced during the year. This value is then transferred to the Trading Account, where it becomes the opening stock of finished goods. The Trading Account further tracks the sale of these goods and determines the gross profit or loss from your manufacturing business.

Step-by-Step Guide to Filing Schedule Manufacturing account in ITR-3

Step 1: Gather Your Financial Records

To smoothly navigate the ITR-3 filing process and accurately report your manufacturing expenses, it's crucial to have all your financial records in order. Here's an expanded checklist:

a) Purchase Invoices for Raw Materials:

• Collect invoices for all raw materials purchased throughout the year.
• Ensure invoices include details like supplier name, date of purchase, quantity, price per unit, and total amount paid.
• Include invoices for any transportation or freight charges incurred while acquiring raw materials (carriage inward).

b) Wage Registers and Salary Slips:

• Gather wage registers or attendance records that detail the hours worked and wages paid to both direct and indirect labor involved in the manufacturing process.
• Collect salary slips of employees, including details of basic salary, allowances, deductions, and net salary paid.

c) Utility Bills:

• Gather bills for electricity, gas, water, and any other utilities consumed in the factory.
• Ensure the bills specify the consumption period and the amount paid.

d) Rent Agreements or Property Tax Receipts:

• If you rent your factory premises, collect the rent agreement and all rent receipts for the financial year.
• If you own the factory, gather property tax receipts and any other documents related to the ownership and maintenance of the property.

e) Insurance Policies:

• Collect insurance policies for the factory building, machinery, and any other assets used in the manufacturing process.
• Include details of premiums paid and the coverage period.

f) Repair and Maintenance Bills:

• Gather invoices or bills for all repairs and maintenance work carried out on factory machinery, equipment, and the building itself.
• Ensure the bills specify the nature of work done, parts replaced (if any), and the amount paid.

g) Other Documents Related to Factory Overheads and Direct Expenses:

• This can include a wide range of documents depending on the nature of your manufacturing business. Some examples include:
  • Royalty agreements and payment receipts.
  • Job work orders and payment invoices.
  • Specific packaging material invoices.
  • Consumable stores invoices (e.g., lubricants, spare parts).
  • Any other expenses directly related to the manufacturing process.

h) Inventory Records:

• Collect records of your opening and closing stock for both raw materials and work-in-progress (WIP).
• These records should include details like the quantity, description, and value of each item.
• If you use a specific valuation method (FIFO or Weighted Average), ensure your records reflect that method.

Step 2: Calculate Opening Stock

Accurately determining your opening stock is crucial for correctly calculating your cost of goods manufactured (COGM) and, ultimately, your taxable income. Here's an in-depth look at how to calculate it:

1. Opening Stock of Raw Materials:

• Source of Information:

  • Previous Year's Balance Sheet: The simplest way to find your opening stock of raw materials is to refer to the closing stock value of raw materials on your balance sheet from the previous financial year. This should be readily available in your accounting records.
  • Inventory Records: If you maintain detailed inventory records, you can also use them to verify the closing stock value from the previous year.

• Important Considerations:

  • Valuation Method: Ensure that the value on your balance sheet or inventory records is based on the same valuation method (FIFO or Weighted Average) that you'll be using for the current year's closing stock. Consistency is key for accurate accounting.
  • Adjustments: If there were any significant changes in your inventory levels between the end of the previous year and the start of the current year (e.g., due to stock write-offs or disposals), make sure to adjust the opening stock value accordingly.

2. Opening Stock of Work-in-Progress (WIP):

• Challenges:

  • WIP can be more challenging to value than raw materials since the goods are in various stages of completion.
  • You need to estimate the percentage of completion for each WIP item and allocate costs accordingly.

• Estimation Methods:

  • Physical Inspection: Visually assess the WIP items and estimate their completion percentage based on the work done.
  • Cost Accumulation: Track the costs incurred for each WIP item (e.g., raw materials, labor, overheads) and allocate them based on the estimated completion percentage.
  • Standard Costing: If you use standard costing, you can apply predetermined standard costs to the estimated completion percentage.

• Documentation:

  • Clearly document the method you used to estimate WIP and the assumptions you made. This will be important for future reference and in case of any scrutiny.

Example:

Let's say you have three WIP items at the beginning of the year:

• Item A: 50% complete, estimated cost to complete: ₹10,000
• Item B: 25% complete, estimated cost to complete: ₹20,000
• Item C: 75% complete, estimated cost to complete: ₹5,000

To calculate the opening stock of WIP, you would do the following:

• Item A: ₹10,000 * 50% = ₹5,000
• Item B: ₹20,000 * 25% = ₹5,000
• Item C: ₹5,000 * 75% = ₹3,750
• Total Opening Stock of WIP: ₹5,000 + ₹5,000 + ₹3,750 = ₹13,750

Step 3: Fill in Purchase Details

• Gather Purchase Invoices: Collect all invoices for raw materials purchased during the financial year. This should include:

  • Basic Raw Materials: The core materials you use to create your products (e.g., wood, steel, fabric, electronic components).
  • Consumable Materials: Items that are used up during the manufacturing process but don't become part of the finished product (e.g., adhesives, lubricants, cleaning supplies).

• Include Taxes: Ensure the purchase invoices include any applicable taxes like GST (Goods and Services Tax). Add the tax amount to the cost of the raw materials.

• Add Transportation Costs (Carriage Inward):

  • Review your invoices for any transportation or freight charges incurred to bring the raw materials to your factory.
  • Include these costs as part of the total purchase cost.

• Calculate the Total: Add up the cost of all raw materials, including taxes and transportation costs, to get the total amount to enter in the "Purchases" field of the Schedule Manufacturing Account.

Step 4: Enter Direct Wages and Expenses

a) Direct Wages:

• Include All Direct Labor: This includes wages paid to:

  • Production workers (machine operators, assembly line workers)
  • Supervisors and foremen directly involved in production
  • Quality control personnel working on the production line

• Exclude Indirect Labor: Do not include wages for employees not directly involved in manufacturing (e.g., administrative staff, salespeople). These will be accounted for in the "Factory Overheads" section.

• Calculate the Total: Add up the wages paid to all direct labor personnel and enter the total in the "Direct Wages" field.

b) Direct Expenses:

• Carriage Inward: As mentioned in Step 3, include the total transportation costs for bringing raw materials to your factory.

• Power and Fuel:

  • This includes the cost of electricity, gas, coal, or any other fuel used directly in the manufacturing process.
  • Exclude utilities used for non-production purposes (e.g., office lighting, heating), as these will be accounted for in the "Factory Overheads" section.

• Other Direct Expenses: This can include a variety of expenses directly attributable to manufacturing, such as:

  • Royalties paid for using patented designs or technologies.
  • Job work charges paid to external vendors for specific manufacturing tasks.
  • Cost of special packaging materials used directly for the finished product.
  • Any other costs directly related to producing your goods.

Step 5: Fill in Factory Overheads

Factory overheads, also known as manufacturing overheads, are indirect costs that are essential for the functioning of your manufacturing facility but cannot be directly attributed to a specific product. Accurate reporting of these costs is crucial for understanding your total manufacturing expenses and calculating the cost of goods manufactured (COGM).

Let's delve into the various components of factory overheads:

a) Indirect Wages:

• Who's Included: This covers the salaries and wages of factory personnel who are not directly involved in the production process, such as:

  • Maintenance staff (mechanics, electricians, cleaners)
  • Quality control inspectors
  • Storekeepers and material handlers
  • Security personnel
  • Supervisory staff not directly overseeing production

• How to Calculate: Add up the salaries, wages, bonuses, and any other benefits paid to all indirect factory workers during the financial year.

b) Factory Rent and Rates:

• Rent: If you are leasing your factory premises, enter the total rent paid during the year.
• Property Taxes: If you own the factory building, include the property taxes you paid.

c) Factory Insurance:

• Types of Insurance: This could include:

  • Building insurance
  • Machinery and equipment insurance
  • Inventory insurance
  • Public liability insurance

• Premiums Paid: Enter the total premiums paid for all factory-related insurance policies during the financial year.

d) Factory Fuel and Power:

• Non-Production Utilities: This includes electricity, gas, or other fuel used for:

  • Lighting the factory premises
  • Heating or cooling the factory
  • Powering administrative offices within the factory

• Exclude Production Utilities: Do not include the cost of utilities directly used in the manufacturing process (e.g., electricity for running machines), as this is accounted for in the "Direct Expenses" section.

e) Factory General Expenses:

• Miscellaneous Expenses: This category covers various indirect expenses necessary for running the factory, such as:

  • Cleaning supplies and services
  • Security services
  • Safety equipment and training
  • Stationery and office supplies
  • Repairs and maintenance of factory buildings (not machinery)
  • Depreciation of factory buildings

• Detailed Records: Maintain detailed records of all these expenses, as they can add up significantly.

f) Depreciation of Factory Machinery:

• Accounting for Wear and Tear: Depreciation is the systematic allocation of the cost of factory machinery over its useful life. It accounts for the wear and tear and obsolescence of these assets.
• Calculation Methods: There are various methods for calculating depreciation, such as straight-line method, written down value method, etc. Use the method prescribed by the tax authorities or as per your company's accounting policies.

Step 6: Calculate and Enter Closing Stock

This step involves determining the value of your remaining inventory at the end of the financial year. Accurate closing stock valuation is crucial for correct calculation of your cost of goods manufactured (COGM) and taxable income.

Closing Stock of Raw Materials:

1. FIFO Method (First-In, First-Out):

   • Assumption: The oldest raw materials are used first in production.
   • Calculation:
     • Identify the remaining quantity of each type of raw material.
     • Multiply each quantity by its corresponding oldest purchase price.
     • Add up these values to get the total closing stock of raw materials.

2. Weighted Average Method:

   • Assumption: An average cost is calculated for all units in inventory.
   • Calculation:
     • Determine the total cost of raw materials available for sale (opening stock + purchases).
     • Divide the total cost by the total number of units available for sale to get the weighted average cost per unit.
     • Multiply the weighted average cost per unit by the number of units remaining in closing stock.

Closing Stock of Work-in-Progress (WIP):

1. Estimate Percentage of Completion:

   • Assess the stage of completion of each WIP item based on factors like labor hours spent, materials used, and overall progress.
   • Assign a percentage of completion to each item (e.g., 25%, 50%, 75%).

2. Allocate Costs:

   • Calculate the total cost incurred for each WIP item (including raw materials, labor, and a portion of overhead costs).
   • Multiply the total cost by the estimated percentage of completion to determine the value to include in closing stock.
   • Repeat this for each WIP item and add up the values to get the total closing stock of WIP.

Step 7: Review Auto-Calculated Values

• Total of Debits to Manufacturing Account: Verify that the ITR system has correctly added up all the debit entries you entered.
• Cost of Goods Produced (COGM) – Transferred to Trading Account: Confirm that the system has correctly calculated the COGM by subtracting the closing stock from the total debits.

Step 8: Verify and Submit ITR

Before you click the submit button, it's crucial to double-check your work and ensure you've completed all the necessary steps to file your ITR-3 correctly. Here's the expanded checklist, including verification and submission:

a) Double-Check All Entries:

• Schedule Manufacturing Account: Review all entries in the Schedule Manufacturing Account, ensuring they are accurate and complete.
• Other Sections: Double-check your entries in all other relevant sections of ITR-3, such as personal information, income details, deductions, and tax payments.
• Calculations: Verify the accuracy of all calculations, including opening stock, purchases, direct wages and expenses, factory overheads, closing stock, and the total tax liability.

b) Make Corrections (if needed):

• Edit and Save: If you find any errors, make the necessary corrections within the ITR-3 form. Save your changes regularly to avoid losing any data.

c) Validate Your Return:

• Pre-Validation Tool: Many tax filing portals offer a pre-validation tool that checks your return for errors and inconsistencies. Use this tool to identify and rectify any potential issues before submitting.

d) Upload the ITR-3:

• If using the offline utility, generate the XML file and upload it to the e-filing portal.
• If filing online, simply save your progress and proceed to the next step.

e) Pay Taxes Due (If Any):

• If you have any outstanding tax liability, pay it online through the e-filing portal using the available payment options.

f) E-verify Your Return:

• E-verification is mandatory to complete the filing process. You can e-verify using your Aadhaar OTP, net banking, bank account number, Demat account, or other methods available on the portal.

Common Mistakes to Avoid When Filing Schedule Manufacturing Account in ITR-3

1. Incorrect Stock Valuation:

• Overvaluation: Overstating your opening or closing stock can inflate your profits and lead to higher tax liability.
• Undervaluation: Undervaluing stock can lower your profits and potentially trigger scrutiny from tax authorities.
• Inconsistent Valuation: Using different valuation methods (FIFO, Weighted Average) for opening and closing stock can lead to discrepancies.

2. Misclassifying Expenses:

• Direct vs. Indirect Costs: Misclassifying direct expenses (e.g., raw materials, direct labor) as factory overheads, or vice-versa, can distort your cost calculations.
• Omitting Expenses: Forgetting to include certain expenses, even those that seem minor, can lead to underreporting of costs and overstatement of profits.

3. Ignoring Depreciation:

• Not Claiming Depreciation: Failing to account for the depreciation of factory machinery can result in overstating your assets and profits.
• Incorrect Depreciation Calculation: Using the wrong depreciation rate or method can lead to inaccurate expense allocation.

4. Incomplete or Inaccurate Documentation:

• Missing Invoices: Not having proper invoices or bills to support your expenses can raise questions during scrutiny.
• Poor Record-Keeping: Maintaining disorganized or incomplete records can make it difficult to accurately calculate your costs.

5. Overlooking E-Verification:

• Non-Verification: Failing to e-verify your ITR-3 within the stipulated time frame can render your return invalid.

Consequences of Incorrect Filing of Schedule Manufacturing Account in ITR-3

Incorrectly filing the Schedule Manufacturing Account in ITR-3 can lead to a range of consequences, from minor inconveniences to significant legal and financial repercussions. Here's a breakdown of the potential outcomes:

1. Immediate Consequences:

• Notice for Defective Return (Section 139(9)):

  • The Income Tax Department may issue a notice if they find any discrepancies or errors in your ITR-3.
  • You'll be given an opportunity to rectify the errors within 15 days.
  • Failure to respond or correct the errors can result in the return being treated as invalid.

• Delay in Processing:

  • Errors in the Schedule Manufacturing Account may delay the processing of your ITR-3.
  • This could result in a delay in receiving your tax refund (if applicable).

2. Potential Long-Term Consequences:

• Scrutiny Assessment (Section 143(3)):

  • If the Income Tax Department suspects significant discrepancies or underreporting of income, they may select your return for scrutiny.
  • This involves a detailed investigation of your financial records and manufacturing accounts.
  • If discrepancies are found, you may be liable for additional taxes, interest, and penalties.

• Penalties and Interest:

  • Section 270A: Penalty for underreporting of income or misreporting of income can be levied, which can be up to 200% of the tax sought to be evaded.
  • Section 234A: Interest for late filing of return.
  • Section 234B: Interest for non-payment or short payment of advance tax.
  • Section 234C: Interest for deferment of advance tax.

• Loss of Credibility:

  • Incorrect filing can damage your credibility with the tax authorities.
  • It may make your future returns more susceptible to scrutiny.

• Legal Consequences:

  • In severe cases of willful misreporting or fraud, you may face prosecution under the Income Tax Act, which can lead to imprisonment and fines.

Conclusion

Mastering the Schedule Manufacturing Account in ITR-3 is a fundamental aspect of financial compliance for manufacturing businesses in India. While the process may seem intricate, understanding its components and following the step-by-step guide provided in this article can significantly simplify your tax filing journey.

Remember, accurate and meticulous record-keeping is the foundation of a successful filing. Gather all relevant financial documents, meticulously calculate your opening and closing stock, and diligently categorize your expenses. By doing so, you'll ensure transparency, avoid errors, and gain valuable insights into your manufacturing costs and profitability.

While the ITR-3 system automates certain calculations, it's crucial to double-check all entries and verify the auto-calculated values. Don't hesitate to seek professional guidance if you encounter complex situations or have doubts about any aspect of the filing process.

By proactively addressing the common mistakes highlighted in this article and adhering to best practices, you can confidently file your Schedule Manufacturing Account, comply with tax regulations, and reap the rewards of accurate financial reporting.

Investing the time and effort to master this process not only fulfills your legal obligations but also empowers you to make informed business decisions based on accurate financial data. Your commitment to financial transparency and accuracy ultimately contributes to the success and sustainability of your manufacturing enterprise.

Disclaimer:

The information provided in this article regarding the filing of Schedule Manufacturing Account in ITR-3 is intended for general informational purposes only and should not be considered as professional financial or tax advice. While every effort has been made to ensure the accuracy and completeness of the information presented, tax laws and regulations are subject to change, and individual circumstances may vary.

It is strongly recommended that you consult with a qualified chartered accountant or tax professional for personalized advice tailored to your specific situation. The author and publisher of this article shall not be held liable for any errors, omissions, or inaccuracies in the information provided, nor for any actions taken based on the information presented herein.

This article is not a substitute for professional advice and should not be relied upon as the sole basis for making financial or tax decisions. Always seek the guidance of a qualified professional before taking any action that may have financial or tax implications.