Save Tax 2015

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TOP 10 TAX SAVING TIPS FOR INDIAN ENTREPRENEURS

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TIP #1

ADVANCE TAX

Pay Advance Tax in time so that you can avoid interest and penalty for not paying advance tax can be saved.

What is Advance Tax?As the name suggests, advance tax refers to paying a part of your taxes before the end of the financial year. Also called 'pay-as-you-earn' scheme, advance tax is the income tax payable if your tax liability is more than Rs. 10,000 in a financial year. It should be paid in the year in which the income is received.



TIP #2

PERIODIC INSURANCE

PAYMENT

Life Insurance payment and Medical Insurance payment is one more investment and tax saving technique.

Section 80-C & 80-DAs insurance payment will be deducted from the income itself, you can save 30% tax if you are in 30% slab, 20% save if you are in 20% slab and so on.



TIP #3

INTEREST ON EDUCATIONAL

LOAN

Interest on education loan is also deductible from income as a tax saving component.

Section 80-EAn education loan can not only fund higher studies of your children can but also help save tax. The interest paid on the education loan can be claimed as deduction, as per Section 80E of the Income Tax Act, 1961.



TIP #4

SCHOOL FEES

School fees of your kids also can be part of tax saving component.

Section 80-CDeduction under this section is available for tuition fees paid on two children’s education. If Assessee have more then two children then he can claim tuition fees paid of only two children’s. The Deduction is available for any two children.



TIP #5

RENTAL INCOME

If housing loan is paid and interest on housing loan is deducted from income, it is restricted to Rs. 1,50,000/- only.

On the other hand, if you show rental income and claim interest on housing loan, then deduction is actual.

That means, if you paid Rs. 5,00,000/- towards interest, full amount can be taken as deduction from income.



TIP #6

SPECULATION INCOME

Please show profit/Loss of speculation income, otherwise you will end up in paying tax unnecessarily.

Because, many a times it so happen that you will have speculation loss along with speculation gain also.

If you ignore it and calculate tax, you will be missing a huge tax exemption.



TIP #7

FILE TAX ON TIME

If you pay your tax on time and file, you will save interest and penalty on time.



TIP #8

PAY HOUSING LOAN &

PROPERTY TAX ON TIME

Please pay housing loan and property tax on time because, both the components are tax saving components.

If you do not pay on time, payment may go to next year and this you may miss the benefit.



TIP #9

IF YOU SELL YOUR PROPERTY

DECLARE IT

Sometimes, it so happen that you may end up in paying huge tax, interest and penalty when you ignore property transaction by mistake.



TIP #10PLEASE CHECK

FORM 26 AS BEFORE YOU FILE TAX RETURNS

Sometimes you may forget incomes like bank interest, professional fees, commission etc.

If you forget these incomes and file your return, income tax department will add all these incomes to the income declared by you and calculate tax on that.

Balance tax payable will attract interest and penalty which is unnecessary.



BONUS TIP #1

VAT REGISTRATION

If you are a product dealer and doing more than 5 lakhs sales per annum, please get VAT registration, otherwise, you may get penalised when you are selling goods.

You may also miss the benefit of getting concession from paying tax if you are purchasing outside the State.



BONUS TIP #2

LABOUR DEPARTMENT

REGISTRATION

Please get registered under labour department if you have a shop or commercial establishment.

You will be able to avoid unnecessary penalty when department people come for inspection.

One more advantage is, you can use the certificate to open a bank account as business proof.



BONUS TIP #3

SERVICE PROVIDER

REGISTRATION

Please get registered if you are a service provider. There is 10 lakh exemption in a year. Therefore, you need not to collect service tax from customer.

Even if you want to enrol yourself in corporates as vendor, you will be needing this, without which you may not get the enrolment.



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