Tax saving tricks apart from regular methods

220°
Deal Cadet
aniguru

Common people are used by government, organisations etc for their goals. We are brainwashed from our birth to serve. People with knowledge/money exploit people,laws,system etc legally.
I created this thread to spread awareness (knowledge from fellow dimers comments) to use financial/tax laws legally so that we can save taxes, earn more etc.

For example even working people can register business and buy laptop/cars for official use(lol) and save taxes on maintainence/petrol/gst.

Fellow dimers please contribute your ideas/knowledge to help common man thrive.

Dimers should do due diligence

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Deal Lieutenant Deal Lieutenant
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For example even working people can register business and buy laptop/cars for official use(lol) and save taxes on

maintainence/petrol/gst.

please explain this whole process? are you a ca?

add this line paji- dimers should do due diligence

Entertainer Entertainer
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First, to begin with, for general understanding, please define common people. Is it a class or situation?

Deal Cadet Deal Cadet
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How to register a business if a person have govt job. I also want to save taxes on buying cars and laptops

Budding Star Budding Star
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Kaise @aniguru ji, kaise?
Koi totka ho to hume bhi bataiye
Hum par bhi kripa barsaiye

Deal Cadet Deal Cadet
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saucap wrote:

First, to begin with, for general understanding, please define common people. Is it a class or situation?

Common means working class people mainly with jobs, organised or non-organised. Sometimes even small business owners. Those who dont use CA to manage their taxes/wealth.

Deal Cadet Deal Cadet
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BAT_MAN wrote:

Kaise @aniguru ji, kaise?
Koi totka ho to hume bhi bataiye
Hum par bhi kripa barsaiye

I also need knowledge in the subject. Only have some blurred knowledge trying ti research more.

Deal Cadet Deal Cadet
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timelord wrote:

How to register a business if a person have govt job. I also want to save taxes on buying cars and laptops

U can register business on your name using ur pan card. Planning to do next month…research inprogress. Govt employee cannot do I guess but you can do on ur family members name.

Talk-Of-The-Town Talk-Of-The-Town
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+

Deal Cadet Deal Cadet
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kukdookoo wrote:

For example even working people can register business and buy laptop/cars for official use(lol) and save taxes on

maintainence/petrol/gst.

please explain this whole process? are you a ca?

add this line paji- dimers should do due diligence

Not an CA but trying to gain knowledge. Planning to consult CA.

Like Magnet Like Magnet
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timelord wrote:

How to register a business if a person have govt job. I also want to save taxes on buying cars and laptops

TDS wale ..apna tax Nahi bacha sakte …thats it

Deal Lieutenant Deal Lieutenant
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Not a CA.
But I’ve registered mulitiple firms with GST and I myself file all of my GST returns.

So let me break some myths:

1) To Register any business on GST protal you need some solid documents as proof.
2) These documents are verified by your regional office, only then you are provided GSTIN. Earlier it used to be easier, now a lot has changed since crores of GST fraud came in limelight.
3) You can succeed in claiming GST for mobile/laptops, but must have a proof to show its usage when a notice from IT dept is served. Anyone can get a notice, so be prepared.
4) You cannot claim GST on cars and it’s constables/maintenance which is purchased for personal or official use. As per the revision in policy: Motor vehicles qualify for ITC in only special cases where you are actually earning money from the vehicle and paying taxes on the earnings. For ex: Car Training institute, car dealership, travel agency.
It’s illegal if you ignore this and you must be prepared for a notice.

Deal Cadet Deal Cadet
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shriAyodhya wrote:

TDS wale ..apna tax Nahi bacha sakte …thats it

Yes TDS will be deducted. But ppl who do freelancing or side business along with job can claim tax benifits for expenses like car laptop etc.That business can be anything like teach your father german and charge hefty fees ….lol(but take care of all household expenses)
Just an idea…..lol

Deal Cadet Deal Cadet
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shoaibmax wrote:

Not a CA.
But I’ve registered mulitiple firms with GST and I myself file all of my GST returns.

So let me break some myths:

1) To Register any business on GST protal you need some solid documents as proof.
2) These documents are verified by your regional office, only then you are provided GSTIN. Earlier it used to be easier, now govt a lot has changed.
3) You can succeed in claiming GST for mobile/laptops, but must have a proof to show its usage when a notice from IT dept is served. Anyone can get a notice, so be prepared.
4) You cannot claim GST on cars and it’s constables/maintenance which is purchased for personal or official use. As per the revision in policy: Motor vehicles qualify for ITC in only special cases where you are actually earning money from the vehicle and paying taxes on the earnings. For ex: Car Training institute, car dealership, travel agency.
It’s illegal if you ignore this and you must be prepared for a notice.

Thanks for sharing

Deal Cadet Deal Cadet
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shoaibmax wrote:

Not a CA.
But I’ve registered mulitiple firms with GST and I myself file all of my GST returns.

So let me break some myths:

1) To Register any business on GST protal you need some solid documents as proof.
2) These documents are verified by your regional office, only then you are provided GSTIN. Earlier it used to be easier, now a lot has changed since crores of GST fraud came in limelight.
3) You can succeed in claiming GST for mobile/laptops, but must have a proof to show its usage when a notice from IT dept is served. Anyone can get a notice, so be prepared.
4) You cannot claim GST on cars and it’s constables/maintenance which is purchased for personal or official use. As per the revision in policy: Motor vehicles qualify for ITC in only special cases where you are actually earning money from the vehicle and paying taxes on the earnings. For ex: Car Training institute, car dealership, travel agency.
It’s illegal if you ignore this and you must be prepared for a notice.

What if I use the car for going on business purposes…I can save tax on my petrol bills right?

Deal Cadet Deal Cadet
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shoaibmax wrote:

Not a CA.
But I’ve registered mulitiple firms with GST and I myself file all of my GST returns.

So let me break some myths:

1) To Register any business on GST protal you need some solid documents as proof.
2) These documents are verified by your regional office, only then you are provided GSTIN. Earlier it used to be easier, now a lot has changed since crores of GST fraud came in limelight.
3) You can succeed in claiming GST for mobile/laptops, but must have a proof to show its usage when a notice from IT dept is served. Anyone can get a notice, so be prepared.
4) You cannot claim GST on cars and it’s constables/maintenance which is purchased for personal or official use. As per the revision in policy: Motor vehicles qualify for ITC in only special cases where you are actually earning money from the vehicle and paying taxes on the earnings. For ex: Car Training institute, car dealership, travel agency.
It’s illegal if you ignore this and you must be prepared for a notice.

Can we register and purchase gadgets for own purpose?

Deal Lieutenant Deal Lieutenant
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aniguru wrote:

What if I use the car for going on business purposes…I can save tax on my petrol bills right?

Since, petrol and diesel currently doesn’t fall under GST. You won’t be getting GST invoice for your spending.

No GST invoice = No scope of claiming GST

PS: Govt opposition had proposed to bring Petrol and Diesel under GST when prices were soaring. Let’s see what happens in future.

Deal Lieutenant Deal Lieutenant
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beamchota wrote:

Can we register and purchase gadgets for own purpose?

If you are claiming refund for GST on any purchase, it means you’ve purchased it for official use. However, nobody knows why you purchased it except you. So, there’s definitely a loophole to take advantage of.

You can purchase one AC and fit in your room saying it’s your office. But you cannot buy a dozen of them for your relatives/friends(I know people who actually did this)

As I always say, you must have an answer when a notice is served. And it must be convincing enough.

Deal Cadet Deal Cadet
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shoaibmax wrote:

If you are claiming refund for GST on any purchase, it means you’ve purchased it for official use. However, nobody knows why you purchased it except you. So, there’s definitely a loophole to take advantage of.

You can purchase one AC and fit in your room saying it’s your office. But you cannot buy a dozen of them for your relatives/friends(I know people who actually did this)

As I always say, you must have an answer when a notice is served. And it must be convincing enough.

Thanks bro

Deal Cadet Deal Cadet
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shoaibmax wrote:

Since, petrol and diesel currently doesn’t fall under GST. You won’t be getting GST invoice for your spending.

No GST invoice = No scope of claiming GST

PS: Govt opposition had proposed to bring Petrol and Diesel under GST when prices were soaring. Let’s see what happens in future.

Thanks….but we can show it as an expense in business right. And can substract it from the profit.

Deal Lieutenant Deal Lieutenant
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aniguru wrote:

Thanks….but we can show it as an expense in business right. And can substract it from the profit.

Yes, sure!

Deal Cadet Deal Cadet
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Edited title for visibility

The PostMighty The PostMighty
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Working people should have actual income from business or profession to claim these business or profession related expenses… Otherwise, I think they are living in a fool’s paradise if they think that they can claim business expenses with no income and just keep on carrying forward their losses and accumulating ITC credit. stuck_out_tongue_closed_eyes stuck_out_tongue_closed_eyes stuck_out_tongue_closed_eyes

Deal Cadet Deal Cadet
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You cannot just claim input on credit on capital goods like mobile or laptop. You have to spread over 3 or 5 years. If you are selling the asset before then period you need to repay pro rata GST Liability. Please consult GST expert before steeping in.

Deal Subedar Deal Subedar
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Just a heads up 

ITC should never be exploited  , you will get caught period 

Its very simple for us to detect these exploitations  evasions thanks to AI  

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