‘Proper planning is important to minimise tax’
   Date :18-Feb-2021

CA Naresh Jakhotia_1 
 CA Naresh Jakhotia
 
 
Business Bureau :
 
“There are 90% chances of maximising the tax benefits if the businessmen take keen interest in taxation matters as taxation is one of the biggest costs involved in business activity,” he further said
 
 
VIA Lady Entrepreneurs’ Wing (VIA LEW) recently conducted a webinar on ‘Chhoti Chhoti Baatein on Taxation’, with the guest speaker CA Naresh Jakhotia, Treasurer of VIA and renowned tax expert of Nagpur, under the Chairmanship of VIA LEW Manisha Bawankar. Keynote speaker, Naresh Jakhotia said, “Proper planning is important to minimise tax in business.” Taxation is of high relevance and is interesting subject but people are least interested. Many businessmen think taxation is a matter dealt by the accountants and tax consultants and are not very keen to participate, although they have to bear the costs and consequences of things gone wrong which can go upto 78 per cent tax rate. “There are 90% chances of maximising the tax benefits if the businessmen take keen interest in taxation matters as taxation is one of the biggest costs involved in business activity,” he further said.
 
Classification of income in the books and its nomenclature is very important in Income Tax, as one has to make a choice to have the tax benefit, he added. He gave an example on how tax planning is important when even income of Rs 10 over Rs 5 lakh would increase tax by Rs 12,802. This looks illogical, but there is no relation between logic and tax laws, he said. On Income Tax planning, he emphasised on advance planning and filing the return well before the due date by observing the basic fundamentals of preparing the balance sheet and return at the earliest, so as to get enough time to plan. He shared the golden rule of tax planning of dividing the income by planning without diverting, and planning to minimise tax by distributing the income between the family members.
 
He also said gift to the family member is also a tax planning tool. He further said one can even plan the timing of the income so as to get the maximum benefit of tax e.g. in case of capital gains. Similarly, planning can be had by choosing the form of business organisation vis-à-vis the tax rates applicable to them. He laid importance on preparing personal balance sheet by every individual to know the full details of self financial transactions.
 
“Tax saving can be done if a person knows the Act well,” he pointed out. On GST, he summarised the entire gamut of the subject into a comprehensive manner starting from registration till filing of returns which gave complete insight of GST to the lady entrepreneurs. At the outset, Bawankar gave the opening remarks and welcomed the guests on the e-session. In her address, she said that finance is one of the most important aspects of business for every women entrepreneur. Neelam Bowade and Poonam Gupta conducted the programme. Present were VIA EC members, VIA LEW EC members viz. Sarla Kamdar, Madhubala Singh, Sarita Pawar, past presidents Chitra Parate, Y Ramani, Vandana Sharma, Shachi Mallick, IPP Reeta Lanjewar, Vice President Indu Kshirsagar, PRO Yogita Deshmukh and large number of participants. Poonam Lala, Secretary, VIA LEW proposed a vote of thanks.