Corporate Tax Saving Tips for Pvt Ltd Companies

Pvt Ltd कंपनियों के लिए टैक्स सेविंग टिप्स

9 min read
30 December 2024
HCS

Reviewed by HCS Expert Team

Updated on 30 December 2024

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.

    Frequently Asked Questions

    Can I claim GST on car purchase?
    Generally ITC on motor vehicles is blocked (Section 17(5)), unless you are in the business of transport or driving training.
    What is the tax rate for new manufacturing companies?
    New manufacturing companies can opt for a concessional rate of 15% (plus cess/surcharge) under Section 115BAB.