6 tips to introduce tax efficiencies in your businesses

20 March 2023

A rupee saved is a rupee earned. Introducing tax efficiencies, wherever possible, helps to save fund outflow. Here are some of the ways to do so:

  1. Proper Book keeping
    Many business expenses are tax-deductible, which helps to reduce overall tax liability. It's crucial to keep accurate and up-to-date financial records to ensure that you don't miss out on any tax deductions or credits.
  2. Registration under Start-Up India initiative
    Getting recognition under this program entitles start-ups to tax holidays, angel tax exemption along with other benefits.
  3. Donations & Charity
    Donations and charity don’t just give you mental satisfaction of having done your bit but also attract tax benefits through donations to registered charities & funds.
  4. Plan Your Investments
    Consider investing in tax-advantaged accounts such as 401(k) plans, or SEP-IRAs. These accounts offer tax benefits that can help reduce your tax liability.
  5. Correct deduction of taxes at source
    Non- deduction or short deduction of taxes (TDS) could lead to the entire expense being disallowed for the purpose of income tax, hence ensuring you’re deducting taxes, where applicable, and at the correct rates in force.
  6. Depreciation
    Manufacturing companies can avail of additional tax benefits through depreciation on the purchase of new plant & machinery.

This article has been prepared for general guidance and information on the subject matter and does not constitute professional advice or a legal opinion and are the personal views of the author. The matters described herein are general in nature and have not been evaluated based on applicable laws. This article is based on information available in the public domain and has not been verified for its accuracy. You should not act upon the information contained in this note without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this note. Treelife and its employees accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. Without prior permission of the author / Treelife this note may not be quoted in whole or in part or otherwise referred to any person or in any documents.

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