{"id":1464,"date":"2026-10-27T08:23:35","date_gmt":"2026-10-27T08:23:35","guid":{"rendered":"https:\/\/www.mylegalbusiness.com\/blog\/?p=1464"},"modified":"2026-10-27T08:23:37","modified_gmt":"2026-10-27T08:23:37","slug":"tax-saving-tips-for-startups-in-india","status":"publish","type":"post","link":"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/","title":{"rendered":"Tax Saving Tips for Startups in India"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Business is a costly game, so effective tax planning is necessary to keep\u2002the doors open for the long haul. Indian taxation rules allow\u2002a number of deductions, exemptions and incentives to promote business and innovation. By being aware of these provisions and applying the right tax planning, New\u2002Business can reduce tax burden in a legal manner and at the same time can ensure full compliance with the Income-tax Act, 1961, Goods and Services Tax (GST) Law and other Laws applicable to it. This article summarizes some practical and important tax saving tips that should be considered by\u2002every startup.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Importance%E2%80%82of_Tax_Planning_for_Startups\" >Importance\u2002of Tax Planning for Startups<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Tax%E2%80%82benefits_for_startups_under_the_legal_provisions\" >Tax\u2002benefits for startups under the legal provisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Top_Tax_Saving_Tips_for_Startups\" >Top Tax Saving Tips for Startups<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Get%E2%80%82DPIIT_Recognition\" >Get\u2002DPIIT Recognition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Claim_Eligible_Business_Expenses\" >Claim Eligible Business Expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Claim_depreciation_on%E2%80%82business_property\" >Claim depreciation on\u2002business property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Keep_Proper%E2%80%82Books_of_Account\" >Keep Proper\u2002Books of Account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Avail_of%E2%80%82Input_Tax_Credit_ITC\" >Avail of\u2002Input Tax Credit (ITC)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Select_the_Suitable_Business%E2%80%82Structure\" >Select the Suitable Business\u2002Structure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#File_Returns_Before_the_Due_Date\" >File Returns Before the Due Date<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Plan_Advance_Tax_Payments\" >Plan Advance Tax Payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Keep_Supporting_Documentation\" >Keep Supporting Documentation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Talk_to_a_tax_professional\" >Talk to a tax professional<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Available%E2%80%82failures_to_deduct_and_exemptions\" >Available\u2002failures to deduct and exemptions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Tax_Errors%E2%80%82You_Should_Never_Make\" >Tax Errors\u2002You Should Never Make<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Advantages%E2%80%82of_tax_planning_correctly\" >Advantages\u2002of tax planning correctly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Why_to_choose_My_Legal_Business_LLP\" >Why to choose My Legal Business LLP?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-saving-tips-for-startups-in-india\/#Frequently_Asked_Questions_FAQs\" >Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance%E2%80%82of_Tax_Planning_for_Startups\"><\/span>Importance\u2002of Tax Planning for Startups<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Efficient tax\u2002planning helps startups in the following ways:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They\u2002can reduce their overall tax bill.<\/li>\n\n\n\n<li>Cash\u2002Flow Boost.<\/li>\n\n\n\n<li>They can take advantage of\u2002as many deductions and exemptions as possible.<\/li>\n\n\n\n<li>Stay clear of\u2002IRS penalties and interest.<\/li>\n\n\n\n<li>Timely statutory\u2002compliance may be ensured.<\/li>\n\n\n\n<li>Build investor confidence through transparent financial reporting.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax%E2%80%82benefits_for_startups_under_the_legal_provisions\"><\/span>Tax\u2002benefits for startups under the legal provisions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Key provisions include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section 80-IAC of the Income-tax Act, 1961 &#8211; Deductions for eligible startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).<\/li>\n\n\n\n<li>Section\u200235 \u2013 Deduction on scientific research expenditure eligible.<\/li>\n\n\n\n<li>Section 37(1) allows for a deduction of expenditure\u2002on business \u201cwholly and exclusively\u201d incurred on business purposes.<\/li>\n\n\n\n<li>Section\u200232 \u2013 Depreciation on tangible business property Section 32 allows for the depreciation deduction on various categories of assets used in your business.<\/li>\n\n\n\n<li>Section\u200244AA &amp; Section 44AB \u2013 Requirement of keeping books of accounts and audit of accounts.<\/li>\n\n\n\n<li>Applicable\u2002provisions of the CGST Act, 2017 pertaining to ITC.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top_Tax_Saving_Tips_for_Startups\"><\/span>Top Tax Saving Tips for Startups<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Get%E2%80%82DPIIT_Recognition\"><\/span>Get\u2002DPIIT Recognition<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Eligible DPIIT-recognized startups can avail a tax exemption under Section 80-IAC, if\u2002they fulfill the conditions prescribed under the Income Tax Act.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Claim_Eligible_Business_Expenses\"><\/span>Claim Eligible Business Expenses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You may be entitled to a deduction for expenses in which were wholly and exclusively for the purpose of the business, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Office rent<\/li>\n\n\n\n<li>Employee salaries<\/li>\n\n\n\n<li>Professional fees<\/li>\n\n\n\n<li>Marketing and advertising<\/li>\n\n\n\n<li>Internet and communication expenses<\/li>\n\n\n\n<li>Business travel<\/li>\n\n\n\n<li>Software subscriptions<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These expenses are generally allowable under <strong>Section 37(1)<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Claim_depreciation_on%E2%80%82business_property\"><\/span>Claim depreciation on\u2002business property<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;You can depreciate\u2002the business value of the:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Computers<\/li>\n\n\n\n<li>Machinery<\/li>\n\n\n\n<li>Office furniture<\/li>\n\n\n\n<li>Vehicles (where eligible)<\/li>\n\n\n\n<li>Equipment<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Depreciation can be claimed under section 32 of\u2002the Income-tax Act.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keep_Proper%E2%80%82Books_of_Account\"><\/span>Keep Proper\u2002Books of Account<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Proper\u2002accounting allows you to take every deduction available to you, makes tax filing easy, and will keep you out of hot water if your returns are ever questioned.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Avail_of%E2%80%82Input_Tax_Credit_ITC\"><\/span>Avail of\u2002Input Tax Credit (ITC)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>GST-registered startups <\/strong>may avail of Input Tax\u2002Credit (ITC) on business purchase upon meeting the conditions prescribed under Section 16 of the CGST Act, 2017.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Select_the_Suitable_Business%E2%80%82Structure\"><\/span>Select the Suitable Business\u2002Structure<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Choosing the right legal structure \u2014 Proprietorship, Partnership Firm, LLP or Private\u2002Limited Company \u2014 has far reaching consequences in terms of taxability, compliances and future growth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"File_Returns_Before_the_Due_Date\"><\/span>File Returns Before the Due Date<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Timely filing of Income Tax Returns and GST returns helps avoid:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Late fees<\/li>\n\n\n\n<li>Interest<\/li>\n\n\n\n<li>Penalties<\/li>\n\n\n\n<li>Loss of certain tax benefits<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Plan_Advance_Tax_Payments\"><\/span>Plan Advance Tax Payments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Since the mischief these provisions \u00a7 234B and 234C of the IT Act are aimed at remedying, is non-payment or non-fulfilment of advance tax, this much should be clear in the subtractive calculations of taxable\u2002income and advance tax payments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keep_Supporting_Documentation\"><\/span>Keep Supporting Documentation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>&nbsp;<\/strong>Hold on to your invoices,\u2002receipts, contracts, and proof of payment to prove your deductions<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hold onto your invoices,\u2002receipts, contracts, and proof of payment to support your deductions should you be audited.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Talk_to_a_tax_professional\"><\/span>Talk to a tax professional<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Insightful and practical tax advice helps start-ups to optimize tax planning, remain compliant with changing legislation and avoid the more costly\u2002mistakes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Available%E2%80%82failures_to_deduct_and_exemptions\"><\/span>Available\u2002failures to deduct and exemptions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Qualifying startups can take advantage\u2002of:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Deduction under <strong>Section 80-IAC<\/strong> (subject to conditions).<\/li>\n\n\n\n<li>Depreciation under <strong>Section 32<\/strong>.<\/li>\n\n\n\n<li>Business expenditure deduction under <strong>Section 37(1)<\/strong>.<\/li>\n\n\n\n<li>Scientific research deductions under <strong>Section 35<\/strong>.<\/li>\n\n\n\n<li>Eligible GST Input Tax Credit under the CGST Act.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax_Errors%E2%80%82You_Should_Never_Make\"><\/span>Tax Errors\u2002You Should Never Make<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Missing Income Tax or <a href=\"https:\/\/www.mylegalbusiness.com\/gst-return-filing.php\"><strong>GST return filing<\/strong><\/a> deadlines.<\/li>\n\n\n\n<li>Mixing personal and business expenses.<\/li>\n\n\n\n<li>Not maintaining proper books of accounts.<\/li>\n\n\n\n<li>Failing to claim eligible deductions.<\/li>\n\n\n\n<li>Ignoring advance tax obligations.<\/li>\n\n\n\n<li>Claiming ineligible Input Tax Credit.<\/li>\n\n\n\n<li>Poor documentation of business expenses.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages%E2%80%82of_tax_planning_correctly\"><\/span>Advantages\u2002of tax planning correctly<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower tax liability.<\/li>\n\n\n\n<li>Better cash flow management.<\/li>\n\n\n\n<li>Improved financial planning.<\/li>\n\n\n\n<li>Increased profitability.<\/li>\n\n\n\n<li>Enhanced investor confidence.<\/li>\n\n\n\n<li>Lowered chances of\u2002tax-related conflicts and fines<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_to_choose_My_Legal_Business_LLP\"><\/span>Why to choose My Legal Business LLP?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">At <strong><a href=\"https:\/\/www.mylegalbusiness.com\/\">My Legal Business LLP<\/a><\/strong>, we provide comprehensive tax and compliance solutions for startups.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our services include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Startup Registration<\/li>\n\n\n\n<li>DPIIT Recognition Assistance<\/li>\n\n\n\n<li>Income Tax Planning<\/li>\n\n\n\n<li><a href=\"https:\/\/www.mylegalbusiness.com\/gst-registration.php\"><strong>GST Registration<\/strong><\/a> and Compliance<\/li>\n\n\n\n<li>Tax Return Filing<\/li>\n\n\n\n<li>Business Structure Advisory<\/li>\n\n\n\n<li>Accounting and Bookkeeping<\/li>\n\n\n\n<li>Tax Notice and Assessment Support<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Our experts assist startups in leveraging the\u2002potentials of tax benefits under the Income-tax Act, 1961, GST laws, and other related laws without them becoming non-compliant ones.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Good tax planning is necessary for every new business if it wants to increase its profits, save cash flow, and\u2002have a sound financial position in the long run. Through all available deductions, exemptions, depreciation benefits, GSTITC and by keeping the\u2002proper records, filing the return in time, a startup can reduce the tax burden in a very legal way. Startups need not worry and can focus on growing their business while staying compliant to Indian tax laws by being aware of their rights and duties under the Income-tax Act,1961 and the CGST Act,2017 and by seeking timely professional help.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Under which section\u2002can eligible startups claim tax benefits?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Section 80-IAC of Income Tax Act, 1961 is the section to encourage\u2002startups by providing them tax deductions for 3 years out of 7 years which begin from the year in which the startup is recognized by DPIIT, under the prescribed conditions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Is DPIIT recognition mandatory for claiming startup tax benefits?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. DPIIT recognition is generally required to claim benefits under <strong>Section 80-IAC<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Do startups get to\u2002depreciate business assets?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;Yes, Depreciation can be claimed on business assets under section 32 of the\u2002Income-tax Act.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Can one claim ITC\u2002under GST for a startup?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, an eligible GST-registered Startup shall be entitled to\u2002claim the ITC under Section 16 of the CGST Act, 2017, subject to such conditions as may be prescribed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Can you deduct your\u2002business expenses?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, business-related expenses that are\u2002necessary and wholly and exclusively incurred for the business are allowable under section 37(1).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Is advance tax applicable to startups?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, Startups which are required to pay advance tax should follow the provisions under the Income-tax Act to\u2002stay exempt from interest payments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Which\u2002business entity has the best tax benefits?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The appropriate structure will\u2002depend on the startup&#8217;s turnover, funding plans, liability concerns, and growth plans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Do\u2002startups get deductions if they don\u2019t have books?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;No, to\u2002claim a deduction books of accounts and other corroborative documents are required.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What if\u2002you don\u2019t file your startup taxes on time?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;Late filing can lead to interest and penalties, as well\u2002as the loss of certain tax benefits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>When should a startup get\u2002tax professional advice?<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\"><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Good advice\u2002can maximize tax savings, ensure you are in compliance with the law and minimize risk of tax related disputes.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-3e41869c wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\">ALSO READ<\/a><\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/how-to-change-address-in-gst-registration\/\"><strong>How to change the address in GST registration Online<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/how-to-claim-tds-refund-online\/\"><strong><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/how-to-claim-tds-refund-online\/\">TDS Refund: How to Claim Your Refund Online<\/a><\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/ngo-annual-compliance-checklist\/\"><strong>NGO Annual Compliance Checklist<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/income-tax-refund-delay\/\"><strong>Income Tax Refund Delay<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/itr-filing-for-founders-and-startups\/\"><strong>ITR Filing For Founders &amp; Startups<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/section-8-company-registration.php\"><strong>Section 8 Company Registration<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/how-to-register-an-ngo-on-ngo-darpan\/\"><strong>How to Register an NGO on NGO Darpan Portal<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/step-by-step-process-for-darpan-registration-for-ngo\/\"><strong>Step by Step Process For Darpan Registration For NGO<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/how-to-start-an-ngo-for-animals-in-india\/\"><strong>How to Start an NGO For Animals in India<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Business is a costly game, so effective tax planning is necessary to keep\u2002the doors open for the long haul. Indian taxation rules [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1465,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tax Saving Tips for Startups in India<\/title>\n<meta name=\"description\" content=\"Discover effective tax-saving tips for startups in India, including eligible deductions, startup tax exemptions, business expenses, investment planning, and strategies to reduce tax liability while ensuring compliance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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