What is Income Tax Planning?
Tax Planning means reducing tax liability by taking advantage of the legitimate concessions and exemptions provided in the tax law. It involves the process of arranging business operations in such a way that reduces tax liability.
The purpose of Tax Planning is to ensure tax efficiency. Through tax planning, all the elements of the financial plan work together in the most tax-efficient manner possible. One will be able to streamline his/her tax payments in such a way that he or she will receive considerable returns over a specific period of time involving minimum risk.
Considerations of tax planning include timing of income, size, timing of purchases, and planning for expenditures. Also, the selection of investments and types of retirement plans must complement the tax filing status and deductions to create the best possible outcome.
The different mindset under which tax planning can be broadly classified are:
Purposive tax planning: Planning taxes with a particular objective in mind
Permissive tax planning: Tax planning that is under the framework of law
Long range and Short range tax planning: Planning done at the start and end of a fiscal year respectively.
Thus, Income tax planning includes tax expert's advice at an affordable price using technology, and the convenience of online collaboration. Tax Cases like Income Tax Declaration, New vs Old tax regime, Tax Savings, Late Income Tax Filing, Revised Income Tax Filing, Optimal Salary Structure, Startup Salary, Capital Gains, Re-investment Options, Undisclosed Income, Tax Investigations, Handling IT Notice, IT Audit, GST, GST Filing, GST Audit, Export, Import Businesses are some examples where we can help you with ease. Book your Tax Consultation appointment today to receive a call from an our tax expert.