BENGALURU: Self-employed individuals for their tax computation purposes are allowed few of the deductions under the Indian Income Tax Act which can hence reduce their total taxable income by the same proportion. You not only have to keep records of all transactions and payments but see that all the conditions laid by the I-T department are met to claim deductions, according to ET.

High Salary:

If you are a professional employee with a turnover exceeding 25 lakh and are liable to get there accounts audited for deductions of certain payments such as interest and commission. An employee won't be allowed  deductions in case tax has not been deducted at source (TDS) and submitting the same before filing the return.

Loan Interest:

Interest paid on loan amount secured for professional pursuits is also allowed for deduction. Taxes including securities transaction tax, commodities transaction tax as well as banking transaction tax can all be claimed to reduce total tax liability by the self-employed. Bad debts are to be set-off as not recoverable by the assessee.

Read More: Feel Broke? 7 Financial Tips For Beginners

Gold Up Despite Stronger U.S. Dollar