Internet has changed the way of the buying process of a consumer. In 2000 almost 22 percent people prefer to buy online but compare to 2016 data 79 percent American prefer to buy online. The offline store also focuses on the online industry due to this reason. Most people prefer purchasing at home comfort. In this reason, online sector grows very fast compare to offline industry. In the current situation, Amazon founder world tops rich person.
Benefits of online selling
Process of online selling
In this para, I want to clear some point regarding the operation of online sale. The online sale is not so hard because the process of online selling is very easy and very convenient but before start online selling first of all understood some important point.
Principle of No Profit No loss
Business have lot of activate when we start any business we have lot of process plan due to that we are a totally focus on profit but business have lot of loss active also. My point is to focus when we scale any business. if we want profit first of all we should understood about profit and loss all activity.
Choose your online market wisely
Top 10 online market portal
India is big economic but only 5 to 10 percent people in India pay income tax. This is main cause of high tax rate in India.
But when we consider whole income tax. Income Tax have a lot of tax planning section. If a taxpayer properly plans according to all deduction mention in income tax act, then a taxpayer easily claim deduction in income tax
Tax saving section in India
Major deduction in income tax is section 80 c. U/s 80 c, a taxpayer can claim Rs.1,50,000 deductions in total income. Due to this reason this section is play a major role of tax planning.
Tax saving option under section 80 C to 80 U
1.Deduction in respect of Life Insurance premium, Contribution to Provident Fund, PPF.
Individual spouse and child
Tuition fee of children
Repayment of housing loan
2.Loan Taken for Higher Education Under section 80E
If any taxpayer taken loan for higher education purpose, any family member a
son, daughter, wife, brother and any other family member. In this case a taxpayer plan income tax deduction. Principle amount of loan not allow but interest amount of loan taken allow.
Note: For a period of 8 years from the year he starts paying interest
Self, spouse, child
Finance minister specific some criteria for deduction in u/ s 80g as some donation are 100 percent deductible or some 50 percent.
If a taxpayer living in rented house, then u/c 80gg claim deduction in rent paid. Most of person not aware this section.
Limit of deduction: Maximum 5000 p.m. or 25 percent of adjusted GTI or Excess of rent paid over 10 percent of adjusted GTI
Interest received on saving account is considering as an income, therefore consider a s a taxable income.
Individual and HUF
Deduction limit: Above the 10000 consider in taxable income
Deduction allow in U/ s 80D i s R s.15,000 and R s.20, 000
Under section 80 is 15000 exempt for income tax
In case of Business deduction
1.100 percent deduction of profit from eligible business of eligible start up
2.Deduction in Royalty Income under section 80QQB
Note: Individuals who are resident in india and are authors
100 Percent of such income or 300000 whichever is less