Illustrate the basic things a common business man needs to now about Income Tax relating to his business transactions.
If you need any clarification/opinion viewers may contact / WhatsApp 7012243098
If you would like to contact CA Subin VR directly you can book a time slot by messaging above number.
Or can send message to the below direct link
[ Ссылка ]
Viewers may also check for other articles and similar contents at the below links.
[ Ссылка ]
[ Ссылка ]
[ Ссылка ]
For share trading inputs:
[ Ссылка ]
[ Ссылка ]
Disclaimer: This video is intended for education purpose only and not for the purpose of soliciting business. The viewers shall take professional advice before taking any decisions on the matters specified in the video. The matters discussed in the video may subject to change due to amendments in various Acts/Rules etc. This channel will not responsible for any damages caused to the viewers.
for the detailed information on disclaimer please visit the link below.
[ Ссылка ]
Tax planning is an integral part of every small business. With appropriate tax planning, you can save a considerable amount of money each year for your business. However, for this you need to know the different provisions available under Indian tax laws. In this article, we shall discuss some tax planning tips that can go a long way in benefiting your company.
Write off preliminary expenses
At the beginning of your entrepreneurial journey, you may incur certain costs while setting up your business. These preliminary or start-up expenses come under capital expenditure for starting a new business. Section 35D of the Income Tax Act allows you to write off initial costs (say, a market survey or engineering expenses) as a deduction, in five equal instalments, over the first five years.
Business expenses
The Income Tax Act allows small businesses to claim deductions on expenses entailed while running the company on the revenues generated. This means you can reduce your tax burden by availing of appropriate tax deductions on all your business expenses. However, for this to be possible, you must record all your business transactions and expenditures diligently and systematically.
Additional depreciation
The Income Tax Act allows you to claim an additional reduction of 20% on any new machinery installed during a year. This provision is to benefit specific industries mentioned under Section 35AD. It is applicable only during the first year of the new machine’s operation.
Home office
Most entrepreneurs use their homes as offices to reduce operating costs on the business. If you use your home as the principal office for your business, you can reduce your tax burden by claiming a deduction on expenses related to your home office, including depreciation, utility bills, property tax and mortgage. You can claim tax deduction under Section 32 for depreciation and Section 37 related to other expenses. This can help you reduce your tax outgo significantly.
Avoid penalty for late filing
There are specific deadlines when it comes to tax filing in India. As a responsible entrepreneur, you may want to submit your tax returns before the due date. Or else you may have to pay a penalty. It is not only vital to maximising your tax benefits; you must also ensure that you utilise your capital wisely.
Click here to know more about the dates for filing your tax
Make a retirement plan
Regardless of your plans to retire, you must formulate a planned and timely exit strategy at the earliest stage of your business. As the owner of a small business, the most treasured part of your net worth is your equity in the business.
However, relying purely on your business as your retirement strategy may not be wise. You may want to plan ahead for uncertain times by setting aside some income regularly in a retirement account or create a specific plan towards retirement. This can help you reduce your tax burden now while preparing for a comfortable future later.
Seek professional help
A dependable authority that can help you manoeuvre your business through the many nuances of the tax code can prove to be an invaluable resource. A good tax expert advises you on more than just tax filing; they also provide tactical, proactive recommendations on how to maximise your deductions. Speak to your tax professional regularly to get an understanding of the opportunities to reduce your tax liabilities.
To sum it up
As a legal taxpayer in India, it is crucial to abide by the laws and pay the necessary taxes when you start a new business. That said, you can take advantage of all the available tax deductions under the provision of the law. By planning your taxes smartly, you get to save a considerable
