Corporate Tax Saving Tips for Pvt Ltd Companies

Stop Overpaying Tax

Many business owners in Tier-2 cities pay more tax than necessary due to lack of planning.

5 Legal Ways to Save Tax

1. Director's Salary vs Dividend: Paying salary is an expense (deductible), whereas dividends are taxed differently. Optimize the mix.

2. Preliminary Expenses: You can deduct incorporation expenses over 5 years (Section 35D).

3. Depreciation: Buy assets (Computers, Vehicles) before Sep 30 to claim 100% depreciation benefit for the year.

4. Rent to Director: If the company operates from your personal property, pay rent. It's a deductible expense for the company.

5. Digital Payments: Turnover below 2 Cr? Use Section 44AD presumptive taxation (6% profit rate) if receipts are digital.

Professional Advice

Tax laws change every year. Don't rely on Google. Consult HCS Chartered Accountants for a personalized tax review.