Friends,
An efficient tax planning can save you handful amount of money whereas an unstructured tax plan can cost you an additional handful amount of money. So, in light of the above statement it becomes very important to make a proper tax planning so that you might be able save a few more. Out of the planning period, the issue of last minute planning is always the most critical one as it would be the last time that you trying to save. In such context, one must remember that he ensures all possible measures. Few of such measures are listed below:
File return with the current data: In case you do not have all the required data that is required for you to file your return within the specified date, it is recommended to file the return with the same available data as on the date of filing of return and later on with adequate data a similar return can be filed in the form of revised return. This would allow you to save yourself from the penalty and prosecution that might have got attracted if anything in contrary might have taken place.
Selling of worthless stocks: Before you file your return it is recommended to sell off all your worthless stocks in form of shares or any kind of securities which does not proves to be fruitful for you, as they will only add the burden of taxation in your case. It should be remembered that minimum amount of assets will also reduce your liability of wealth tax, if any.
Claiming of depreciation under section 179: Depreciation is sure an area of focus where one can look forward to claim depreciation. Depreciation on all capital assets can be claimed and charged to P\L which will provide the double benefit of reduction n profit and as well as lesser value of assets.
Donation and charities: The best way to save our income from the hands of taxation is to provide such income in form of charity and donation. It should also be remembered that donations in areas like research and technology can offer up to 125% of deduction which can be very useful while counter balancing your extra income. Along with it, it also promotes the goodwill of your business and creates a distinct image of yours in the society.
Quick investment: a last minute quick investment can definitely cut down your tax liability in to a considerable level. Say, if you invest your income on research and development programs you can very well end up getting 125% of deduction of the amount invested. This can also lead to better utilization of existing resources and more fruitful results which can foster your business earnings.
Thus, we find that there certain very useful last minute tax planning suggestions that can very well reduce your tax liability and can allow you to save some money on legal terms which you can use according to your own pleasure and enjoyment without being tensed about it. Tax planning is the key to tax savings.
