Nobody likes to pay tax, but we all know dues have to be paid. However, with a little intelligence, you can save as much tax as you are allowed to. Tax saving is more than just PPF and life insurance. Here, we will discuss some fantastic ways to save tax (Tax Planning). Further, note that we do not encourage tax evasion and we are just trying to provide some ways in which you can save maximum tax.
Here we have discussed tax saving tricks which can be really helpful if appropriately followed.
Many businesses are unaware of the benefits under this section, and they end up paying higher taxes. Under this section, taxable income is deemed to be 8% of the total turnover provided it does not exceed Rs. 2 crores. We have discussed this with an example below.
4,00,000 (8% of 50,00,000)
Tax on above income
Thus, you can save total tax of Rs. 1, 18,450. Further, as per this section, even maintaining books of account is not mandatory. However, this section covers only business and not technical consultancy or profession.Tax Planning