Effective Tax Saving Strategies for Businesses

Hiring family members can prove to be a significant step to reduce taxes. They can be paid salaries like the way other employees are paid. If the family members who get hired by the company have no other income, then the company can pay them just Rs 2,50,000 a year. This will ensure that they don’t become liable to pay taxes. Since the salaries paid to the employees is a cost to the company, it can be setoff against the company’s taxable income, thereby reducing the overall tax outgo of the company. Source: cleartax (There is an calculation error in the video other than that the information given is true)