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Income Tax Deductions For Business

By Finserv MARKETS - Sep 3,2019
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Income Tax Deductions For Business

Web 2.0 and the new business model which involves marketing to people around the world has opened up doors to several new opportunities, such as using visuals to tell a story — the usage of camera, film and photography. There has also been an onset of online publications that publish a good number of pictures year-round. Photography has become an active tool for depiction, a practice which is used in different businesses and several disciplines.

If you want to start your career as a professional photographer, and put out some wedding photography packages or other popular packages for people to purchase, there are various things that you should keep in mind, things that will help you narrow down in a niche, gain expertise, improvise, and later expand. Let’s look at five things that you have to keep in mind before you start a photography business with a business loan from Finserv MARKETS.

Running a business requires a large amount of capital. Therefore, entrepreneurs are always looking forward to minimize the expenses and increase the profitability of their business. A fair share of the total business revenue goes towards the payment of taxes. Thus, knowing the common tax deductions can help business owners save a large sum. Let us have a look at some of the most common income tax deductions for business.

Income Tax Deductions For Business

Section Nature of expenditure Quantum of deduction Assessee
Section 30 Rent, taxes, repairs (excluding capital expenditure) and insurance for premises Actual expenditure incurred excluding capital expenditure All assessee
Section 31 Repairs (excluding capital expenditure) and insurance of machinery, furniture, and plant Actual expenditure incurred excluding capital expenditure All assessee
Section 32AC Deduction under section 32AC is available if the actual expense of new plant and machinery acquired and installed by a manufacturing company during the previous year exceeds Rs. 25/100 Crores. (Subject to certain conditions) 15% of the actual cost of new asset The company engaged in business of manufacturing or production of any article or thing
Section 35CCA Payment to following Funds are allowed as a deduction: Actual payment to specified funds All assessee
National Fund for Rural Development
National Urban Poverty Eradication Fund
Section 36(1)(ii) Bonus or commission paid to employees which would not have been payable as profit or dividend Actual expenditure incurred All Assessee
Section 36(1)(v) Employer’s contribution towards approved gratuity fund created solely for the benefit of employees (Subject to certain conditions). Actual expenses not exceeding 8.33% of the salary of each employee All Assessee – Employer
Section 36(1)(ix) Expenditure incurred by an organization on the promotion of family planning amongst employees is allowed as a deduction Entire revenue expenditure is allowed as deduction. The capital expenditure shall be allowed as a deduction in 5 equal installments in 5 years Company
Section 36(1)(xiv) Contribution to Credit Guarantee Trust Fund for micro and small industries is eligible for deduction Actual expenditure incurred Public Financial Institutions
Section 36(1)(xv) Securities Transaction Tax paid Actual expenditure incurred if corresponding income is included as head profits and gains of business or profession All Assessee

A proper understanding of these tax deductions for business can help entrepreneurs run their business efficiently by saving a large amount of money.

Business Loan Tax Benefits

Nowadays, most entrepreneurs often avail a business loan to fund their business expansion. Since entrepreneurs are eligible for tax benefits on business loan, it remains as one of the best financing options available to the entrepreneurs. Read on to know how entrepreneurs can avail business loan tax benefits.

  • Knowing Tax-Deductible expenses can bring down the gross revenue and lower the taxable income. It is advisable to know the interest rates, processing fees, and different terms and conditions before taking up a business loan.
  • The interest charged on a business loan is tax-deductible. The interest is paid to the lenders for using their funds. This amount is an expense for the business and is deducted from gross income. Entrepreneurs are advised to maintain proper accounts for these types of payments to avail the business loan interest tax deduction
  • However, it is important to note that the principal repayment amount is not tax-deductible. As the principal repayment is just paying back the borrowed cash, it is not tax-deductible.
  • Lastly, borrowers should ensure that the loan is repaid within the specified tenure. Failing to which, it may lead to serious concerns for the borrower in the future.

With leading financial institutions, you can avail a business loan in a hassle-free manner. The online application process and minimal documentation gives Bajaj Finserv Business Loans an edge over the other financial institutions. Moreover, you can customize your business loan of upto 15 lakhs to suit your needs in the best possible way. Most competitive business loan interest rates and flexible repayment options ranging from 12 to 60 months are some of the added advantages of availing a Bajaj Finserv Business loan. You can also calculate your monthly installments beforehand with the help of a business loan EMI calculator. So why wait? Give your vision a much-needed platform by availing a business loan, today.

Know About Tax Benefits on Business Loan in India

Also, read about benefits of business loan. You can also your business loan eligibility with business loan eligibility calculator.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522