In India, many business owners encounter specific challenges when filing income tax returns. It involves regulatory challenges, operational issues, technical hurdles, and financial constraints. Henceforth, the owners consider it a complex tax. To boost savings and decrease the tax liability burden, a strategic plan for tax-saving opportunities is mandatory. To retain a significant portion of your money, it is necessary to save on taxes when filing your income tax return. Many
businesses save tax while filing income tax returns in Kolkata.
How to save tax while filing income tax returns?
Mentioned below are the methods to save tax while filing tax returns:
Implement Section 80 C deduction
To deduct 1.5 lakh from a huge sum of investment, it is better to implement Section 80C of the Income Tax Act. To implement this section, you can rely upon the public provident fund, life
insurance premium, national savings certificate and equity-linked savings scheme. It is one of the finest methods to save tax while minimising your tax liability.
Employer contribution to NPS u/s 80CCD(2)
Certainly, only the salaried individuals can apply Section 80CCD(2). An employer makes a huge sum of contribution than a particular employee. Under this section, the deduction is available in
addition to the deduction allowed under Section 80C. Moreover, the income tax department also suggests this approach to the business owners.
Transport allowance and conveyance allowance
For covering travel expenses between home and office, the employee is eligible for a transport allowance provided by the employer. For physically challenged employees, an exemption amount is available. A few expenses are incurred while performing office duties. To meet those expenses, a conveyance allowance is an appropriate option.
Exceptions eligible under Section 10
A new regime has been introduced, under which a voluntary retirement scheme is exempt. Government employees receive a gratuity that is exempt from taxation. According to the Payment of Gratuity Act, the exemption of the private employees’ gratuity depends on special
coverage. Even during the time of resignation or retirement, there is a leave encashment.
Rebate under Section 87A
If the taxable income is less than a certain amount, the taxpayers are eligible for a rebate. This rebate policy has been launched under the new tax regime. If the taxpayer's income is 12 lakh, then there is a chance of zero tax liability. Nowadays, majority of the companies are opting for rebates under Section 87A.
Voluntary retirement scheme
The employers offer a retirement scheme to employees nearing retirement. It indicates that the employee can opt for a voluntary retirement. Rs. 5 lakh is the exemption amount under this section. It is the easiest method to save tax while filing an income tax return. Hence, the business owners need to opt for this approach.
If you are looking to file your income tax returns, contact S.M. Gupta & Co. We have experts who can assist you with filing your tax returns. For several years, we have been serving our clients. Partner with us today. Our team will give you the appropriate tax solution.
