5 Tax Saving Tips for Small Business Owners in India

For running your own business in India you require a string of statutory compliances and remember to pay the attached fees and taxes. Even after the implementation of GST last year, the Indian taxation system remains complex as ever and your business ends up paying a significant amount in taxes to the government.

Today, we are sharing 5 tax saving tips for Indian business owners, including best practices to help you earn more from your business venture.

Claiming  benefits on a housing loan

If you have an active home loan, you can claim its interest to be a deduction from house property and claim the principal as deduction under Section 80C (limited to a maximum of Rs. 150,000).  This will effectively reduce your overall taxable income by reducing your ‘income from house property’ in ITR.

Electronic payment of municipal taxes

You can also claim the taxes paid to your municipal corporation or municipality as deductions under income from house property. You simply need to keep a record of the payments and copy of receipts. Electronic payment of municipal taxes ensures that your bank account have the necessary proof in case you damage or lose the receipts.

Switch to smart and efficient accounting

Since most small businesses in India are labour intensive enterprises, they are used to pay wages in cash. Sometimes, as much as 40% of a small business’s manufacturing expenses may be going into direct and indirect wages. If your business fails to keep track of these expenses, then your profit margins increase because of unrecorded entries in your expenses account and you are liable to pay more taxes. So if you have been neglecting bookkeeping for a while now, it is time to take a closer look at the state of affairs in your accounts department. You can also take help of a free accounting software to make matters easier.

Claiming Additional Depreciation

The Income Tax Act allows a claim of additional 20% depreciation on new machinery installed during the year. The provision meant for the benefit of certain notified industries under the Section 35AD and it is only applicable for the first year of a new machine or equipment’s operation. By claiming the additional depreciation @20% you can claim save that amount as expenses incurred.

Deducting TDS

There are certain transactions which require you to deduct the tax at source, such as payments made as commission to your business agent or a freelance employee. If you fail to deduct the TDS the whole amount becomes inadmissible for claiming tax rebates. So make sure that you keep track of all such transactions and deduct tax @10% for them.

So these are some tips / best business practices which will allow you to save more by reducing your tax burden. In case you have been a little less prudent with accounts management in the past, it is never too late to adopt these practices. In the meanwhile, you can also apply for short term business loans to get out of current financial troubles and start your business’s recovery. To know more about fast business loans, click here.

Lendingkart Instant Business Loans App – Loans Under 5 Minutes

Lendingkart Instant Business Loans

Business loans for startups are a difficult thing to achieve. For existing businesses, the story is different. A business can apply for a working capital loan based on its age and turnover. Banks have been the usual go-to option for people and businesses for getting financial aid. Alternative digital lenders or NBFCs have become the better choice for businesses now. Lendingkart, as a digital lender, offers short term working capital loans to existing small businesses. One can apply for a business loan through the website or the Lendingkart Instant Business Loans app on Google Playstore.

Requirements for Applying for a Business Loan on Lendingkart Instant Business Loans App

One must bear in mind that this app is for running businesses. The following borrowers can apply for a working capital loan –

  1. Businesses more than 3 months old
  2. Business that are seeking a supplementary short-term loan for managing sudden emergencies

The business should have an annual turnover of at least INR 3 lakhs.


How to Apply for a Business Loan through Lendingkart Instant Business Loans App

The app available on Google Playstore is simple to understand. You can use this link to visit the website and download the app. Or you can just search for ‘Lendingkart’ on Playstore to get the following results.

Lendingkart Instant Business Loans in Playstore Search on phone

Use the highlighted result above to get to the following screen.

Playstore Page - Install Lendingkart Instant Business Loans

Tap on ‘Install’ to get started.

The app will access your Google account to verify your identity. It will require access to Photos/Media/Files, SMS, Contacts and Phone. Camera, WIFI and internet data access for video proof.

Open the application from the Playstore page or by selecting the LK icon in the app drawer.

Lendingkart Instant Business Loans Installed

Basic Information

In the first screen, tap on ‘Get Started’ and enter your registered mobile number in the following screen. You will receive an OTP through SMS to verify your phone number.

Lendingkart Instant Business Loans Getting Started and OTP Verification

Please note the following three details required to apply for a loan successfully.

  1. Details of your business (Type, Date of establishment, turnover, industry etc.)
  2. PAN Number
  3. Working bank account (use the one meant for your business)

In the ‘About Your Business’ screen, enter the details as asked in the following fields.
Lendingkart Instant Business Loans About your Business

For Registration type, you can choose any one of the following options.

  1. Proprietorship
  2. Partnership
  3. Ltd.
  4. One-person company
  5. LLP
  6. Limited company
  7. Not registered

Lendingkart Instant Business Loans - Registration Types

In ‘How old is your business’, 6 options are available. From ‘Planning to start’ to ‘More than 5 years’.

You can choose the industry type of your company from the following list.

Lendingkart Instant Business Loans - Industry type

Choose the annual turnover of your company, the acting owner of the company and the PIN code of the business address. Enter the details carefully as you cannot edit these later. Click ‘Confirm’.

Lendingkart Instant Business Loans - Details

If your business doesn’t meet the basic eligibility criteria of being 3 months’ old or having 3 lakhs annual turnover, you might encounter the following screen.

Lendingkart Instant Business Loans - Ineligibility Business Vintage TO

Credit Eligibility Information

If the application proceeds to the PAN details screen, enter the PAN details of the owner. In case there are multiple owners, you must enter the name and PAN numbers of multiple people.

Lendingkart Instant Business Loans - PAN Details
Press the ‘Confirm’ button and please wait till the application verifies your PAN details. This process hardly takes any time. The following screen has a progress bar.

Lendingkart Instant Business Loans - PAN verification

Based on your credit history and credit score, you might encounter either of the following screens.
Lendingkart Instant Business Loans - Post PAN Verification

Pre-approved Loan Offer and Bank Information

In case you reach the ‘Pre-approved Loan Offer’ page, you can view details of the loan amount and terms and conditions applicable. You can also choose the option of ‘Proceed for Higher Loan’. In that case, it will be a longer process that we will cover in another article.

Lendingkart Instant Business Loans - Pre-approved Loan details

After agreeing to the ‘Pre-approved Loan Offer’, your loan processing will be initiated.
Post that, you will come across the following screens. Use the ‘OK. Let’s Complete’ button.

Lendingkart Instant Business Loans - Post offer acceptance

Add a bank account where you need the loan, along with the current business and home address.

Lendingkart Instant Business Loans - Adding Bank Account and Address


References and Personal Identity Information

Thereafter, add two references of people you know and trust. You can pick them from your Contacts list if you want.

Lendingkart Instant Business Loans - Adding References
Lastly, you need to record a 5 second video of yourself holding your PAN Card. Try to keep yourself in the outline of the window.

Lendingkart Instant Business Loans - Selfie video

Lendingkart Instant Business Loan App Process Completion

From here, you can go to the ‘Dashboard’ to view the details of your application.
In case your company is a ‘Pvt. Ltd.’, you must complete an online application form. ‘OK. Go to Application Form’.

Lendingkart Instant Business Loans - Online Application for Pvt. Ltd.

Important Points regarding Lendingkart Instant Business Loans App

There are a few things to keep in mind when using the application on your phone. Please ensure –

  1. Your phone camera and mic work
  2. The phone has internet access, through WIFI or through 3G/4G
  3. The bank account you provided has business transactions
  4. Your email address works, and you can access your emails
  5. You use your primary mobile number for registration
  6. You follow the instructions on the screens perfectly

While using the Lendingkart Instant Business Loans app, it helps if you –

  1. Use a current account as your bank account
  2. Provide as detailed information about owners as possible
  3. Provide detailed contact addresses to receive the agreement
  4. Connect your bank account (it is much faster that way and secure as well!)

Need more help while applying through the app? Stuck in the middle of the process? You can always reach the team at this number – 07949066222.