Making investments in different types of business ventures, startups or firms that have great growth potential is perhaps a great idea. It lets the concerned investors earn something lucrative and at the same time get benefits in some other amazing ways. There are so many small businesses and firms around that look forward to such investors that may supply them with the requisite financial aid and let them keep on with their business without any troubles due to a shortage of funds. Such an investment is basically referred to as EIS. It is because the investors choose some business enterprises for investment purposes.
Of course, there are a plethora of benefits associated with EIS as explained here under:-
Relief From Income Taxes
You would really feel relaxed and glad to know that by opting to choose an enterprise investment scheme, you may get relief from income tax. In simple words, you may save a handsome amount of money that is otherwise paid by you to pay off the hefty taxes on your income. It is all due to the reason that you are making investments in some enterprise to let it grow by supplying the funds it needs. Such investors are offered relief from income tax as they contribute towards business growth in an indirect way.
Freedom From Tax On The Investments That Grow
Obviously, the investments made by you in some enterprises will eventually grow provided you have chosen the right entity to make an investment in. It is facilitated by the state governments to offer relief to such investors that prefer to make investments in EIS on the capitals that they invested. Even you are exempted from any taxes on the profits earned by you on the investments that you made. Thus it is an advantageous deal for you in the long run.
Safer Investment Option
It is surely one of the major benefits associated with EIS. It is considered to be a safe investment option as the investors are saved from any losses that they may otherwise incur in the case of other types of investments. Any losses that may happen get compensated by the capital gains. Thus you are always on the safer side.
Additional Tax Exemptions
With the option of an enterprise investment scheme, you also become liable for other types of tax exemptions. To propel people capable of making investments into EIS, the state governments or other concerned authorities offer other types of tax reliefs as well like inheritance tax relief.
After getting to know about all these amazing benefits of EIS, you may also get propelled to opt for the same being an investor. Thus you may get great profit returns on your investments in the form of tax reliefs and other advantages.
