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Tax planning  is the process of forecasting one's tax liability and formulating ways to reduce it. Tax planning  entails creating portfolios or circumstances that are as tax efficient as possible. Purpose of Tax Planning :-Tax planning is a legal and accepted practice followed by business all over the world. Tax planning allows a company or individual to use tax laws and regulations to its benefit to save on the tax it would otherwise pay. These savings can be plowed back into the business to help it grown and become more profitable or to augment the wealth of an individual. Because tax avoidance is illegal and tax planning is completely legal. Tax Planning is nothing but showing your income and investing your money in such a manner that reduces your tax liability and eventually results in saving of money. Tax Planning follows an honest approach, to achieve maximum benefits of tax laws, by applying the script and moral of law. If you are looking for outsource tax pla

Tax planning includes the analysis of a financial situation or planned transactions from a (direct or indirect) tax perspective. The purpose of tax planning is normally to ensure tax efficiency and compliance, so that all the elements in a transaction are working together in a tax efficient manner, reducing the overall tax liability and ensuring that every action taken is compliant with the relevant rules and policies under which the transaction is conducted. International Tax Planning: - Transactions of a cross-border nature are at risk of attracting double taxation, which may make such transactions less efficient and can sometimes limit cross-border trade and other activities. Tax planning helps in estimating how much tax a company will have to pay. This is done by making estimations and comparing it to the previous year’s data. For a business, regular tax planning and paying of tax will help save them from complexities of the legal authorities of the government. Thus, a b

Tax Planning can be understood as the activity undertaken by the assessee to reduce the tax liability by making optimum use of all permissible allowances, deductions, concessions, exemptions, rebates, exclusions and so forth, available under the statute. ·          Short range tax planning :  Short range tax planning refers to year to year planning to achieve some specific or limited objective. ·          Long range planning :  Long range planning involves entering into activities, which may not pay off immediately, e.g. transfer of assets without consideration to minor child. The income will be clubbed to transferor upto the child in minor but afterward, this will be an income of child. ·          Permissive tax planning :  Permissive tax planning is a planning for tax under the express provisions of tax laws. Indian tax laws offer many exemptions, rebates, deductions and incentives. ·          Purposive tax planning :  This planning is based on the measures which circumv

Tax planning allows a taxpayer to make the best use of the various tax exemptions, deductions and benefits to minimize their tax liability over a financial year. Tax planning is a legal way of reducing income tax liabilities; however caution has to be maintained to ensure that the taxpayer is not intentionally indulging in tax evasion or tax avoidance. Importance of Tax Planning :- ·          Assessee can avail the benefit of relief, deductions, and rebate upto the date of submission of return. ·          Tax planning enables companies to make proper expenses planning, capital budgeting planning, and sales promotion planning etc. to reduce the tax planning specially during inflation. ·          An organization always requires repairs, renewals, modernization and replacement of plants and machineries for continuous growth and to fight with competition. Any decisions of these kind would involve huge capital expenditure, in which is financed generally by ploughing back