6 tips to introduce tax efficiencies in your businesses

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.

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