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3 most common Income Tax mistakes a business owners should avoid

07 Nov, 2024

By Vidhu

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3 most common Income Tax mistakes a business owners should avoid

1️⃣ Not Deducting TDS on Payments to Contractors, Professionals & Employees
πŸ” Tip: Ensure TDS applicability is checked before making payments to contractors, professionals, and employees.

2️⃣ Mixing Personal & Business Expenses in the Books
❌ Reminder: Keep personal expenses separate from business expenses. The Income Tax Act only allows deductions for business-related expenses.

3️⃣ Non-Compliance with Tax Regulations on Foreign Payments
🌍 Important: Payments to foreign professionals or for software subscriptions require special treatment under the Income Tax Act. Always comply to avoid penalties.