ITR Deductions for Dental and Medical
ITR Deductions for Dental and Medical to reduce their taxable income and overall tax liability.
Three key deductions that they might consider are:
◘ Business Expenses Deduction:
Dental and Medical Laboratories can claim deductions for various business expenses incurred during the financial year.
This includes expenses related to laboratory equipment, supplies, staff salaries, rent for the laboratory space, utilities, and other operating costs.
These expenses can be deducted from the total income, resulting in a lower taxable income.
◘ Depreciation Deduction:
Laboratories can also claim depreciation on the value of their fixed assets, such as diagnostic equipment, computers, furniture, and other tangible assets used for the business.
Depreciation is a non-cash expense that reflects the wear and tear of these assets over time. This deduction further reduces the taxable income, thus lowering the tax liability.
◘ Research and Development (R&D) Deduction:
If the laboratory is engaged in research and development activities related to medical or dental technologies, they might be eligible for R&D deductions under Section 35 of the Income Tax Act.
These deductions are aimed at encouraging innovation and technological advancement. Expenses incurred on qualified R&D activities can be claimed as a deduction, leading to a reduction in taxable income.
It’s important for Dental and Medical Laboratories to maintain accurate records of all expenses, income, and relevant documents to support their claims for these deductions during ITR filing.
Consulting a tax professional or chartered accountant can help ensure that all eligible deductions are claimed accurately, maximizing tax benefits while ensuring compliance with tax regulations.
To visit: https://www.incometax.gov.in
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