Importance of Tax Planning


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 of profits, reserves. Availability of profits, reserves and surplus and claiming such expenses as revenue expenditure are possible through proper implementation of tan planning techniques.

If you are looking for tax planning outsourcing, then visit our website cygnusaccountants.com.au or write an email us sales@cygnusaccountants.com.au

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