Work from home is a very common and useful method used by people to earn more money from the market easily and comfortably. If you run your business from your home, then you need to go through some points to claim tax return.
Costs that you can claim
- When you are going to claim the tax return, then you should check what you can include in the claiming list.
- The electric bills and the costs of the other utilities related to work can be claimed if you are running a business from your home.
- You can also claim the phone cost related to the business purposes.
- The cost of the setting for work purpose at your home can be claimed. You can claim the cost of making table, chair and light fitting charge and more.
- For claiming these cost, you need to show a separate working area at your home from where you run the business.
- If you have the doctor’s chamber at your home or if you are a businessman and your workshop is sat your home then you can claim the above-written cost on your tax return.
- You can claim a partial exemption on the residential cost when you run a business from your home, but a full exemption cannot be claimed.
- You need to check the period of establishment of the business at your home.
These points are checked by the tax department while giving an exemption to tax. When you are going to claim the return tax, then you need to specify these points, and if you are amateur in this case, then an efficient professional bookkeepers can help you.
There are many professionals who are experienced in this particular field, and they can help you in filing the return. You should check the background of the professional before leaving the responsibility on him. There are different rules for the people who have a separate place at their house for business purpose and who don’t have any exclusive space for business purposes. So, you need to know these in detail, and accordingly, you should claim the return tax.
If you can show a place at your home established for business purposes, then you can claim the expenditure for running the business from your home. But if you fail to prove it then you may face some problems.