Every day a business endures various expenses that can either be fixed or variable in nature. These expenses are the base that keeps a business running efficiently. The government of India recognizes that such expenses are a need for businesses as a whole and not any specific person; hence it has to be deducted when filing for taxation.
Some of such expenses that can be written off in the name of the business are:
- Rent: The payment made against occupying a space for business purposes is a fixed cost for a business that remains constant for the whole year. It is deductible in the name of the business since the sole cause of its use is the business itself.
2. Utility cost: Such cost includes water bills, electricity bills, phone bills, internet, sewage, and trash pickup bills. Any costs that are specifically employed for business purposes are fully deductible.
3. Traveling expenses: The cost that is charged against any travel made for business. It can be for a meeting, a pickup of consignment, or even a delivery of a product.
4. Insurance: Business insurance, as well as insurance provided against an employee benefits policy, can be written off as a business expense.
5. Marketing & Advertising spends: The cost that a business pays for the purpose of advertising is fully deductible as part of the business promotion. It can be print media or digital advertising.
Multiple other expenses can be written off as business expenses, and the owner can enjoy the tax benefits under those. So keep in mind these points before filing for your business taxations.