{"id":2000,"date":"2019-05-14T11:07:51","date_gmt":"2019-05-14T11:07:51","guid":{"rendered":"https:\/\/home.flexiloans.com\/demo\/?p=2000"},"modified":"2025-06-25T19:18:36","modified_gmt":"2025-06-25T13:48:36","slug":"tax-saving-tips-for-small-business-owners-in-india","status":"publish","type":"post","link":"https:\/\/flexiloans.com\/blog\/tax-saving-tips-for-small-business-owners-in-india\/","title":{"rendered":"TAX SAVING TIPS FOR SMALL BUSINESS OWNERS IN INDIA"},"content":{"rendered":"\n

Running a business requires a business owner to undertake oodles of tasks. But, it isn\u2019t always easy.<\/em> To gain the most and increase net earnings a business owner needs to pay heed to various factors. While most of the factors that tend to impact business profitability are out of control.  Fortunately, there is one thing that you can certainly do is lowering the tax burden. <\/p>\n\n\n\n

Implementing effective tax planning can help you keep your tax bill as low as possible. It can save a significant amount of your revenue from being paid as tax to the government every year.  <\/p>\n\n\n\n

Thus, to support and make your business liable to lesser taxation here are some tax-saving tips for small business owners in India. Keeping these tips in mind will help you save tax legally by claiming the right deductions.<\/p>\n\n\n\n

1. RECORD YOUR EXPENSES<\/strong><\/h3>\n\n\n\n

The most crucial step towards minimizing the tax burden is adopting good bookkeeping practices.  Irrespective of type or size of business every business owner should consider maintaining a regular record of business expenses.  Failure to do so can be real trouble for business owners who pay wages in cash. Unrecorded cash expenses can reflect higher profit margins making you liable to pay more in the form of taxes. Thus, to avail, necessary tax exemptions master your skills of solid record-keeping and also make sure to keep an eye on all state of affairs in your accounts department.<\/p>\n\n\n\n

2<\/strong>.\u00a0CLAIM DEPRECIATION<\/strong><\/h3>\n\n\n\n

Under the sections of Income-tax act manufacturing units in India are liable to avail a tax deduction for depreciation of machinery. The provision is entitled to offer an additional depreciation of 20%, apart from the regular depreciation (15%). However, the benefits of this additional deduction can only be claimed during the first year of machinery or equipment being put to use. Similarly, another section, 35AD provides a tax deduction on total capital expenditures to enterprises involved in businesses specified under this section.<\/p>\n\n\n\n

3. AVAIL BENEFITS ON UTILITY EXPENSES<\/strong><\/h3>\n\n\n\n

As per the Government of India, various business utility expenses used for serving the legitimate purpose of business can be included under the slab of tax-deductible entities.<\/p>\n\n\n\n

The various business expenses that you can claim for lowering taxable income are: <\/p>\n\n\n\n