5 points all entrepreneurs should remember while filing taxes

In case a business has incurred the losses, it then becomes more important and beneficial in order to timely file the tax returns.

An important task for every entrepreneur is thus in order to take charge of his/her finances. And when it thus comes to finances, handling of the taxes can become a big issue. From running to the chartered accountant’s office for the purpose of going through the old records, entrepreneurs thus are supposed to do it all. But, in order to make it easier, here’s a quick checklist that every business owner should thus go through while filing the taxes.

The purpose of this article is to make the reader aware of the 5 points which every entrepreneur should remember while filing the taxes .

The following are the points :-

1. Maintaining the Books Of Accounts

It’s thus very important for an entrepreneur in order to maintain a detailed company book and then keep an accurate record of the company’s financial history. These days, most of the banks and the financial institutions generally refer to the Income Tax Returns record before they thus sanction any kind of a loan or a credit. One should thus seek the professionals help early in order to ensure compliance.

2. How To Address Business Losses?

When an entrepreneur starts his/her journey, he/she faces many kind of challenges. And usually, in the first year of their entrepreneurial venture every business generally results in generating the losses. That’s thus totally normal. In case the business has thus incurred losses, it’s however more important and also beneficial in order to timely file the tax returns. Business losses are thus allowed in order to be carried forward for the eight assessment years and can also be set off against the business income.

3. Personal VS Official?

When one is are running his own company with a small team, often business and personal expenses generally get mixed. So, it is also advisable that an entrepreneur thus creates two different bank accounts right from the start. This thus helps in order to clearly distinguish between the expenses that one’s business can claim and the ones it thus cannot.

4. Preliminary Expenses

Before one sets up his business or either formally registers his company, one might thus incur a few expenses that however often go unaccounted for. It’s thus very important in order to keep a track of these expenditures, which are however called as preliminary expenses. Such expenses may thus be claimed as a deduction in the year the business is commenced. An entrepreneur should also maintain records of such kind of expenses and should also take advices from CA for claiming the same while they are filing ITR.

5. Bills Are also Important

Every individual who is however applying for assessment should thus keep its accounting records. This must be for a period of six years from the end of that specific year. An entrepreneur should also thus ensure that all the proofs and receipts of the transactions are thus preserved carefully. Details of the assets which are purchased, expenditure which s incurred, rent agreements and all the other documents must also be safely kept as well. All of these thus help at a later stage when the Assessing Officer (AO) asks for it.

However , the founders of LegalRaasta a startup which provides legal services have over powered these hurdles and have ended up in providing more than 100 + services. One doesn’t even have to go out , as it provides online services .

Choosing LegalRaasta is beneficial as:

1. It has , 30+ offices in India

2. It has 10+ years experience

3. It helps to save your time

4. There is a cash back guarantee

Some of the services which it provides are :