The budget 2017 has turned out to be sort of a boon for the startup sector of the country. The period of profit-linked deductions available to the startup has been increased from 5 years to 7 years now. Moreover, the companies have been allowed to carry forward their Minimum Alternative Tax (MAT) to 15 years from the current 5 years span. Not only that, the Micro Small and Medium Enterprises (MSMEs) have been given a breather on the income tax front as FM Mr. Arun Jaitley proposed to reduce the income tax. Overall this year seems to be an awesome year to launch your startup. Pick My Story brings you some tips on how to make it easy for you by saving some tax!
Claim Tax Benefits:
Claiming tax benefits on expenses which you can write off as cost. Your startup will implement a bunch of items which can be claimed for tax benefits, such as:
- Office Premise rent & Utility expenses
- Accommodation & Conveyance charges in the name of the company
- Communication & traveling charges such as phone bills, tolls, vehicles, etc.
- Staff salaries
- Medical Insurance premiums
Start an LLP:
A Limited Liability Partnership is a kind of a company in which all the partners have limited liabilities. Thus, it exhibits elements of partnership and corporation. LLP has more benefits over other forms of businesses as in only costs in between 12-15 K and does not incur any audit until the Rs. 1 Crore.
Have Client Lunches:
Perhaps this is the best tip you can implement to save some tax and treat your taste buds at the same time. All the business related meals are allowed to be deductible up to 50%. So the next time when you have a meeting with a potential client, instead of holding onto your wallet, just order what you desire and claim it later.
Launching a startup requires guts, commitment towards hardships and patience. Although, another most important thing which it requires is money. Saving on tax can get you significant financial backup and get your venture fueled up for good. Stay tuned with Pick My Story and we will be here with some more exciting stuff!
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