Are you taking advantage of all available tax breaks and deductions?
Curious about financial planning
Professionals and businesses in India can take advantage of a range of tax breaks and deductions to minimize their tax liability. Some common strategies include:
1. Deducting business expenses: Businesses can deduct a range of expenses incurred in the course of running their operations, such as rent, salaries, and office supplies.
2. Investing in taxsaving instruments: There are several investment options in India, such as Public Provident Fund (PPF), National Pension System (NPS), and EquityLinked Saving Scheme (ELSS) that offer tax benefits.
3. Claiming depreciation: Businesses can claim depreciation on assets used for business purposes, such as machinery and equipment, which can reduce their taxable income.
4. Taking advantage of deductions for research and development: Businesses engaged in research and development activities can claim a deduction of up to 150% of their expenditure on eligible R&D activities.
5. Opting for the presumptive taxation scheme: Small businesses with a turnover of up to Rs. 2 crores can opt for the presumptive taxation scheme, which allows them to pay taxes based on a presumptive income.
It is important for professionals and businesses to consult with a tax professional or financial advisor to ensure they are taking full advantage of all available tax breaks and deductions.