The end goal for Tax Planning is to keep more of what you make!!
Do Business Owners like to have 5 Tax Saving Tips?
Higher incomes are subject to higher tax rates, which is why it is prudent to save up as much of your hard-earned income as possible. Hence, the aspect of making crucial investments that can lower your tax burden for years to come, should be inculcated as early in your career as possible.
Incorporating tax saving investments into your portfolio early on gives you a head-start for the future. Moreover, it gives a longer duration for your investments to start yielding returns for a period when you might need them most.
Here are 5 ways to save Income tax: –
- Private Limited company vs Proprietary/Partnership/LLP
- Salary and Rent payment to Directors/Partners
- Buyback of shares against the Dividends
- Investment in share and Mutual Fund
- Floating of Hindu Undivided Family (HUF)
Learn more about the above 5 ways in detail in the video: