Introduction

Running a startup in India is exciting — but managing taxes can be challenging. Many entrepreneurs focus on business growth while overlooking smart tax-saving strategies. With proper planning, startups can reduce tax liabilities legally, improve cash flow, and reinvest savings into growth.

At Nakrani Rabadiya & Co., Surat’s trusted startup consultants, our goal is to help founders make smart financial decisions through strategic tax planning and compliance support.

1. Register Your Startup Under the Startup India Scheme

The Startup India Scheme, launched by the Government of India, offers multiple tax benefits for eligible startups.

Key advantages include:

• 3 years of tax holiday under Section 80-IAC (within the first 10 years of incorporation).

• Exemption from Angel Tax under Section 56(2)(viib).

• Easier access to funding and self-certification for labor & environmental laws.

💡 Tip: To qualify, register your startup with DPIIT (Department for Promotion of Industry and Internal Trade).

2. Claim Deductions Under Section 80C & 80D

Even startups can use individual tax-saving options if founders or partners are drawing salaries.

Examples:

• Section 80C: Deduction up to ₹1.5 lakh for ELSS, PPF, or life insurance.

• Section 80D: Health insurance premium deduction up to ₹25,000 (₹50,000 for senior citizens).

These reduce personal tax burdens while maintaining compliance.

3. Deduct Business Expenses Properly

Many startups miss out on legitimate business expense deductions.

You can claim deductions for:

• Office rent, internet, software, and marketing expenses

• Employee salaries and professional fees

• Travel and client meeting costs

• Depreciation on laptops, machinery, and office furniture

📘 Remember: Keep all invoices and receipts — the Income Tax Department allows only well-documented deductions.

4. Opt for the Presumptive Taxation Scheme (Section 44ADA/44AD)

For startups and freelancers with turnover up to ₹2 crores, the Presumptive Taxation Scheme offers simplified filing and reduced compliance.

You can declare profits as a fixed percentage of total turnover (6%–8%) without maintaining detailed books of accounts.

This saves time, reduces stress, and lowers audit requirements — perfect for small startups or solo founders.

5. Avail GST Input Tax Credit (ITC)

If your startup is GST registered, you can claim Input Tax Credit on business purchases like laptops, raw materials, and office supplies.

This means you pay GST only on the net value, reducing overall tax outflow.

✅ Ensure proper GST filing every month to avoid ITC denial or penalties.

6. Utilize Depreciation Benefits on Assets

Startups investing in equipment, laptops, or office setups can claim depreciation as a tax-deductible expense under the Income Tax Act.

It helps reduce taxable income and ensures efficient capital management — a key advantage for growing businesses.

7. Hire a Professional Tax Consultant

Tax laws are dynamic and frequently updated. Hiring a qualified CA firm ensures that your business leverages every possible exemption while staying compliant.

At Nakrani Rabadiya & Co., we specialize in:

• Tax Planning & Advisory for Startups

• Income Tax Filing & Compliance

• GST Registration & Return Filing

• Accounting & Virtual CFO Services

Our experts, CA Gaurav Nakrani and CA Ravi Rabadiya, simplify tax compliance so you can focus on scaling your startup.

Conclusion

Saving taxes legally is not about finding loopholes — it’s about using government-approved provisions effectively. Smart planning today means more savings, better compliance, and faster growth tomorrow.

If you’re a startup or SME looking for tax consultants in Surat, Gujarat, get in touch with Nakrani Rabadiya & Co. for complete financial and tax guidance.

📞 Contact us today to discuss customized tax-saving strategies for your business.