Your equipments

Your personal assets and equipment can also be used as a means to save income tax. Well, the method is similar to the ones mentioned earlier. You only have to show the use of personal assets as business assets. That is: suppose you have some personal assets like Cars, Property, or other equipment, then you can save a lot of tax by showing that these assets are being used for company's work, even if you are using them for personal works.

I will give a small example to demonstrate this. Suppose you have a printing machine, and you print 100 papers everyday for personal use, and 900 for company use. Then if you show that all 1000 papers are being used for business work, then you will be able to avail deductions or rebate on the equipment, and the cost of printing, from your annual taxable income.

Hence, you can show the use of any kind of personal assets to business assets and then show them as business expenses. You can convert personal assets into business assets by contributing them to your business. You can do so by giving them to your business either in exchange for a loan document or as contributed capital. If you received a loan document, the business will repay you principal (the market value of the assets) plus interest on a periodic (generally monthly) payment schedule (called amortizing a loan). If you considered the assets to be a contribution of capital, this contributed capital can be used to substantiate your ownership position in your business.