Tax is big money and these days you need to take the right steps to save your tax. As a business owner, you need to understand every minute detail from the GST registration process to UTGST. You cannot leave your tax savings in the blinds of the tax bureau because it becomes very difficult for you to claim refunds or minimize the tax burden when filing returns. So, this article will help you get all the best ways for entrepreneurs to save taxes who are facing tight financial situations.
Let’s find out how to do this:
- Hire relatives and family members
A great way to save on taxes is to hire your family members and relatives. This is usually a good thing and a great way to create jobs in the economy. However, there are some things you should know before hiring your family members and relatives. First of all, if you have employees that are related to you, then you will need to pay them more than the minimum wage for their work. You can also deduct any expenses that are involved with training your family members or relatives for their job duties.
- Invest More in Marketing = marketing expenses get tax deductions
If you want to save on taxes, then you must invest more in marketing than other companies do. Marketing expenses include advertising costs, website design fees and even travel expenses if you are travelling around meeting with potential customers or clients. These types of expenses are all considered deductible when calculating your annual income tax return so it is well worth it to invest more time and money into marketing your business rather than just relying on word-of-mouth advertising alone!
- Accurately Deduct Tax at Source
It is important to accurately deduct the tax you have to pay at source, as it will help you evade paying extra taxes. This can be done by e-filing your income tax returns and claiming refunds on the refundable amount.
- Don’t Delay With Your Return Filing
Don’t delay with filing your tax return if you are an entrepreneur. You should file it immediately after the end of the financial year so that you have time to claim any refund that is due to you. If you delay filing your return for reasons other than having insufficient funds, then you will lose out on claiming any refund or reimbursement which may be due to you by the government.
- Donate To Charity A Lot More Often
It is your choice whether you want to pay GST on ac or spend money on tax in any other way or would you rather donate for a good cause. Donating money to charity can help entrepreneurs save a lot of money on taxes because they can claim donations as exempt from taxation under Section 80C of the Income Tax Act 1961, which means that they do not have to pay income tax on such donations made by them or their family members or dependents; and if they do pay tax on their donations, it can be claimed back as a deduction.