Entrepreneurs and business owners are liable to pay income tax on the revenues generated by their business.
Following are small ways to save tax:
1. Hire Your Own Family Members and Relatives:
Hiring family members can help to reduce taxes. They can be paid salaries up to Rs 5,00,000 a year.
This will have dual benefit, first expenses booking for business, and capital build-up for relative.
2. Travelling and Accommodation
It is common to travel places for business purpose. If you are to save taxes, then from the next time book your travel tickets and accommodation on the business expense and not from your account.
3. Purchase electronics in name of business
Whenever purchasing AC, Laptops, Mobile, etc for business, always purchase the same from your business account, there would be dual benefits, first you will get GST input and second you will be able to claim depreciation on the asset purchase.
4. Donation
Donating money gives you not only the satisfaction of doing a good deed but also tax benefits. You need to donate to the registered charities and funds such as PM’s relief fund. You can also donate to a recognized political party to claim tax breaks.
5. Housing Loan, LIC
You can claim tax deductions of up to Rs 1,50,000 a year under Section 80C of the Income Tax Act.
There are a lot more tax planning techniques, which will be informed in the later blogs.
So, These small planning's will reap huge tax-benefits over long run.
Need help in planning now?? Don't worry we are there.
Regards
CA Umang Jain
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