Category: Blog

Tax season doesn’t have to mean stress. With proper planning, you can reduce your tax liability and still stay fully compliant with the law. Here are smart, legal ways to save tax on your salary in India: 1. Utilize Section 80C Deductions (Limit: Rs. 1.5 Lakhs) Invest in these to claim deductions: Employee Provident Fund (EPF) Public Provident Fund (PPF) ELSS (Tax-saving mutual funds) Life Insurance Premiums Principal repayment of home loan Children’s tuition fees 2. House Rent Allowance (HRA) If you live in a rented house and receive HRA, you can claim exemption based on: Actual HRA received 50% of basic salary (for metro cities), 40% for others Rent paid minus 10% of salary Tip: Keep rent receipts and PAN of your landlord if rent exceeds Rs. 1 lakh annually. 3. Standard Deduction (Flat Rs. 50,000) This is a no-questions-asked deduction available to all salaried individuals. It’s automatically factored into your taxable income 4. Tax-Free Allowances & Reimbursements Ask your employer to structure your salary smartly with: Meal Coupons (e.g., Sodexo): Exempt up to Rs. 50/day Telephone/Internet Reimbursement Uniform Allowance Books & Research Allowance (for professionals) 5. Leave Travel Allowance (LTA) Can be claimed twice in a block of 4 years for travel within India. Covers travel fare for self and family. Ensure you keep travel tickets. 6. Section 80D – Medical Insurance Deduction up to Rs. 25,000 for premiums paid for self, spouse, and children Additional Rs. 25,000–50,000 for parents depending on their age 7. National Pension Scheme (NPS) – Section 80CCD(1B) Additional deduction of Rs. 50,000 over and above the 80C limit for NPS contributions. Great for retirement planning and tax saving. 8. Education Loan Interest – Section 80E If you’re repaying an education loan, you can claim the interest as a deduction for up to 8 years—no upper limit. 9. Home Loan Interest – Section 24(b) Deduction of up to Rs. 2 lakhs annually on interest paid on a home loan for a self-occupied property. Final Tip: Plan Early, Save More Waiting until March to start tax planning is a common mistake. The earlier you plan your salary and investments, the more you save—without stress. Need Help with Salary Structuring or Tax Planning? Radgiver Business Advisors offers personal tax consultation to help you minimize taxes while staying fully compliant with the law. Let’s make your salary work smarter for you.

The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. If you’re running a business, it’s important to know whether GST registration is mandatory for you. Here’s a breakdown of who must register: 1. Turnover Threshold For Goods: Rs. 40 lakhs and above (Rs. 20 lakhs for special category states*) For Services: Rs. 20 lakhs and above (Rs. 10 lakhs for special category states*) *Special category states include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, etc. 2. Inter-State Supply Any business making inter-state supply of goods must register under GST, regardless of turnover. For services, the threshold applies. 3. E-commerce Sellers If you sell through platforms like Amazon, Flipkart, or your own e-commerce website, GST registration is mandatory—no matter your turnover. 4. Casual Taxable Persons Businesses that occasionally supply goods/services in different states (like exhibition stalls) must register regardless of turnover. 5. Non-Resident Taxable Persons Foreign entities providing goods or services in India must obtain GST registration. 6. Input Service Distributors (ISD) Entities that distribute the credit of GST paid on services to other branches must register as ISDs. 7. Reverse Charge Mechanism (RCM) If you’re liable to pay GST under the RCM, you’re required to register—even if your turnover is below the threshold. 8. Others Who Must Register Agents of suppliers Persons liable to deduct TDS/TCS under GST Online database and service providers from abroad Still Unsure? At Radgiver Business Advisors, we help you determine if GST applies to your business and handle the registration, compliance, and filing process from start to finish.

When starting a business, choosing the right structure is one of the most important decisions you’ll make. In India, two common forms of business entities are the traditional Partnership Firm and the Limited Liability Partnership (LLP). Though they may sound similar, they differ significantly in terms of liability, legal recognition, and compliance. 1. Legal Status Partnership: Not considered a separate legal entity. The firm and the partners are legally the same. LLP: A separate legal entity under the LLP Act, 2008. It can own property and sue or be sued in its own name. 2. Liability Partnership: Partners have unlimited liability, meaning their personal assets can be used to settle business debts. LLP: Liability of partners is limited to their agreed contribution. Personal assets are usually protected. 3. Registration Partnership: Registration is optional, though unregistered firms have limited legal rights. LLP: Registration is mandatory with the Ministry of Corporate Affairs. 4. Compliance & Regulations Partnership: Fewer compliance requirements, but less credibility in formal settings. LLP: Requires filing of annual returns and financial statements, offering greater transparency. 5. Taxation Both entities are taxed similarly under the Income Tax Act. However, LLPs are exempt from Dividend Distribution Tax (DDT), which applies to companies. 6. Suitable For Partnership: Small businesses with fewer legal obligations and personal trust among partners. LLP: Professionals or businesses seeking credibility, limited liability, and growth scalability. Conclusion Choosing between a Partnership and an LLP depends on the nature of your business, your growth ambitions, and your risk appetite. For most modern businesses, LLPs offer a balanced mix of flexibility and protection.