Municipal taxes paid during the year are eligible for tax deduction. Business owners often pay municipal taxes in cash and do not keep a copy of receipts of the same. Use a cheque to reflect your payment in your bank statement & claim tax benefits.
If you frequently travel for business purposes, file the expenses to the company’s account & show it as a business expense. Trust us, this would help you a lot while filing IT Returns.
Business owners shouldn’t forget to deduct 10% at source (TDS) whenever they are paying for the services received from a third-party vendor. In case you forget, the entire amount won’t be considered as your expenses and increase your tax burden.
Avoid making cash payments above ₹20,000/- in a day to a single person. ITA disallows the deduction of expenses if paid in a day to a person exceeding ₹20,000/- other than by way of cheque or draft. However, there are certain exceptions under rule 6DD where this isn’t applicable.
Sections 53 to 54H provide exemption on capital gains if sale proceeds realised are invested into assets specified in the respective sections.
The Indian Income-tax act provides multiple benefits to the entrepreneurs involved with manufacturing enterprises—for example, additional depreciation, specified business under section 35AD, etc.
This goes without saying. Filing ITR on or before the due date will let you enjoy the benefits of carry forward of losses on business income.
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