{"id":11925,"date":"2020-10-14T05:20:12","date_gmt":"2020-10-14T05:20:12","guid":{"rendered":"\/blog\/?p=11925"},"modified":"2020-10-14T05:20:48","modified_gmt":"2020-10-14T05:20:48","slug":"tax-saving-tips-for-small-businesses","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-business\/tax-saving-tips-for-small-businesses\/","title":{"rendered":"Tax Saving Tips for Small Businesses"},"content":{"rendered":"\n

For most small businesses, the Indian Tax\nSystem is like a maze \u2013 full of complex laws and statutory compliances. But if\nyou wish to save money on business tax, there are definite ways.<\/p>\n\n\n\n

Here are some tax-saving tips for small\nbusinesses to help you save a considerable sum and reduce the tax burden.<\/p>\n\n\n\n

File your taxes on time<\/strong><\/h2>\n\n\n\n

First and foremost, be sure to file your\ntaxes on time or you can miss out on crucial tax benefits while in a hurry. You\ncan now use the online GST portal to pay and file your tax returns and ensure\ncompliance. <\/p>\n\n\n\n

Moreover, one can even use the portal to\nrectify or refile the tax on business in case of discrepancies. <\/p>\n\n\n\n

Avoid cash payments<\/strong><\/h2>\n\n\n\n

Under the Income Tax\nAct, any payment over Rs. 20,000 in a day is not deductible from your total\nincome if made in cash. Any expenditure incurred in cash is disallowed from the\nassessment of your total income, which is why you should avoid cash payments.\nEspecially for the municipal taxes, make payments by cheques to keep a record\nof your payments and claim deduction on tax. <\/p>\n\n\n\n

But if you do make cash payments, keep a\nrecord of the same. You can use cash receipts with signature or thumb\nimpression towards your total expense and seek business tax deduction\naccordingly. <\/p>\n\n\n\n

Get tax benefits on business loan<\/strong><\/h2>\n\n\n\n

If you service a small business loan<\/a>,\nyou can avail deductions on the interest payments as it is considered a\nbusiness expenditure. You can deduct the interest amount from your total income\nto estimate the business tax. <\/p>\n\n\n\n

However, the sum paid towards the principal\namount of your loan is not tax-deductible. <\/p>\n\n\n\n

Additional\nRead: <\/strong>Tax\nBenefits on Business Loan<\/a><\/p>\n\n\n\n

Make use of GST exemptions<\/strong><\/h2>\n\n\n\n

If you are a dealer or supplier who deals\nwith taxable supplies under GST, you need to register for a GSTIN or Goods and\nServices Tax Identification Number to claim input tax credit.<\/p>\n\n\n\n

But if you deal with a non-taxable supply\nas defined by the GST law, you need not register for the GSTIN. <\/p>\n\n\n\n

Moreover, there are three types of\nexemptions \u2013<\/p>\n\n\n\n