Here are some of the landmark ways as to how can website expenses reduce your tax liability
- Tax benefits by creating your own website: If you make your own website then the costs associated in creating it and maintaining it later on will form part of your business expenditure and thus you can get the benefit of the same while showing your business expenditure to the IT Department. This will help you to reduce your tax liability.
- Domain: In making a website one first needs to purchase a domain name. For example – .co.in / .com / .org / etc. Different domain names have different prices associated to them and such domain needs to be renewed every year.
- Hosting Charges: After creating the website one needs to pay hosting charges to a web host for using a web server on rent. This charge depends on the size of the website. Initially a web host provides 5 MB (approx.) of data usage memory to store the information in the server that are provided in the website, later on one can increase the size of the website as per their requirement which will carry some extra costs.
- Web Structuring: Web structuring involves designing the webpage with theme which can be derived by the user either free of cost or by paying for a paid up theme. It also involves number of pages in the website which will contain numbers of information that are required to be shown in the website. More the pages and benefits one would derive more will be the cost of buying the same. Moreover, in this context one needs to know whether he will make a static website or random website. Static website implies to that website in which no updates can be given and in case of random or dynamic webpage, one can update information and can upload images, flash images, videos, other information as per the user’s will.
- Web development Charges: This charge is associated with the content writer who works on the website development by putting contents into it. Website’s Content writer charge is also allowable expense as per Income Tax rules. In this regard one can hire web designer also who works on the development of the website. This is associated with a monthly or weekly charge, as the case may be.
- Search Engine Optimization (SEO) Engineering: This is a mechanism to get web ranking among all the other web pages. This enhances popularity of your web page as well as your business. In general, the earlier (or higher ranked on the search results page), and more frequently a site appears in the search results list, the more visitors it will receive from the search engine’s users. SEO may target different kinds of search, including image search, video search, news search and industry-specific vertical search engines. For this purpose you need to hire an internet marketing company.
Thus for reaping the advantage of these expenditures, I would like to encourage all the innovative businessmen to create their concerns’ websites which will also assist the concerns to attract more stakeholders, and we are assured that you are now well aware of ways of how can website expenses reduce your tax liability.