A rupee saved is a rupee earned. When there are several tax-saving provisions, it is only wise to make use of them.
- Proper Book keeping
Many business expenses are tax-deductible, which helps to reduce overall tax liability. Proper book keeping helps in keeping track of all expenses accurately.
- Registration under Start-Up India initiative
Getting recognition under this program entitles start-ups to tax holidays, angel tax exemption along with other benefits.
- 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.
- Digital Transactions
In the current digital era, make use of the tax benefits attached to digital transactions. It helps in saving taxes by discharging liabilities / making payments through digital modes instead of cash.
- 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 ensure you’re deducting taxes, where applicable, and at the correct rates in force.
Manufacturing companies can avail of additional tax benefits through depreciation on the purchase of new plant & machinery.