If you run a startup in Andhra Pradesh or anywhere in India, every rupee counts. The good news? The tax law lets you erase a lot of everyday costs from your taxable income. That’s what we call a "business tax write‑off." Below are the most common write‑offs and how to claim them without a headache.
Office rent, electricity, internet, and even a modest employee lunch can be deducted, as long as they’re strictly for business. Keep the bills, not just a mental note. A scanned PDF saved in a cloud folder works as proof for the Income Tax Department.
Travel isn’t just for vacations. If you’re meeting a client, attending a trade show, or scouting a new supplier, mileage, train tickets, and even a reasonable hotel stay are deductible. Write the purpose on the receipt or in a travel log – the tax officer will thank you.
Buying a laptop, a printer, or a delivery van? You don’t have to write off the whole amount in one year. The law lets you spread the cost over the asset’s useful life – that’s depreciation. It lowers your profit each year and smooths cash flow.
Software subscriptions work the same way. Instead of treating a yearly SaaS fee as a one‑off expense, you can split it across the 12 months. This tiny trick adds up when you have multiple tools.
Don’t forget home‑office deductions if you’re a freelancer or a solo founder. A portion of your rent, electricity, and internet can be claimed proportionate to the space used for work. The key is a clear, written layout of the area and consistent records.
Interest on business loans, including the loan you might have taken to buy that laptop, is also deductible. Just make sure the loan is strictly for business purposes and you have the sanction letter and repayment schedule on file.
Lastly, GST paid on purchases can be claimed back if you’re a registered taxpayer. Keep the GST invoices – they’re your ticket to recover that tax.
Putting it all together is easier than you think. Create a simple spreadsheet with columns for date, expense type, amount, and supporting document link. Review it every month, file the PDFs, and you’ll have a tidy audit trail ready for any assessment.
When it’s time to file your return, use the appropriate ITR form (usually ITR‑3 for proprietorships or ITR‑4 for presumptive income). The “Schedule C” section is where you list all your business expenses. Follow the prompts, attach your expense summary, and you’re good to go.
Remember, the goal isn’t to stretch the rules, but to use them. A well‑documented write‑off saves you tax, improves cash flow, and lets you reinvest in growth. So grab those receipts, set up a basic filing system, and let the tax savings roll in.
Learn which costs a small business can claim as tax deductions in 2025, how to document them, avoid common traps, and maximize your write‑offs.
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