Sponsorship Advance Payment = Tax Deferral: Get Paid in Next FY
Defer large sponsorship payment from March to April, delay tax by 1 year
What is This Hack?
If receiving large sponsorship in March, negotiate payment in April (next financial year). Defers tax liability by 1 year under cash basis accounting, helps manage cash flow and advance tax. Works for individuals using cash accounting, not companies on accrual basis
Key Benefits
- Potential savings: ₹20K-50K interest on deferred tax
- Implementation time: 1 hour to negotiate payment terms
- Legal status: fully legal
- Risk level: low
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