TAX PLANNING FOR NEW

BUSINESS
 Tax Considerations to set up a new business:
 Nature of Business
 Size of Business

 Form of Business

 Location of Business
Tax benefits on the basis of nature
 Sec. [ 10(1) ] - Agricultural Income– fully exempted
(100%)
 Sec 10AA - Income from newly established units in
Special Economic Zone, is exempt for consecutive 15
Assessment years up to specified limit
 Sec 80IA – Deduction in respect of profits and gains
from infrastructure development undertaking
 Sec 80IAB – Deduction in respect of profits and
gains of an undertaking engaged in development
of Special Economic Zone
 Sec 80IB – Deduction in respect of profits and gains
other than infrastructure development undertaking
 Sec 80IC – Deduction in respect of profits and gains
from certain undertakings in certain special category
states
 Sec 80IE – Deduction in respect of profits and gains
from certain undertakings in North-Eastern States
 Sec 80JJA - Where an assessee derives income from
business of collecting and processing of bio-
degradable waste, he is entitled to a deduction of an
amount equal to whole of such income for five
assessment years
 Sec 80IAC – Deduction in respect of profits and
gains from specified business
 Sec 80IBA - Deduction in respect of profits and
gains from housing projects

 Note: To avail the tax benefit the assessee must

fulfil the conditions prescribed in the Income Tax Act
 Form of Business
 Individual
 HUF

 Partnership Firm

 Joint Stock Company

 Note: The best form of business organisation from tax

point of view is the one which attracts minimum tax
liability