What is Tax Planning?

Tax planning is the process of managing financial affairs in a manner that reduces tax liabilities. It involves analysing an individual's financial situation, income sources, and expenses, and then taking appropriate steps to minimise the tax burden. Financial planning helps individuals or businesses to make informed financial decisions that maximise tax savings while staying compliant with the law.

Tax Preparation Services are legal and ethical, and it is not the same as tax evasion, which is illegal. Tax evasion involves deliberately concealing income, misrepresenting deductions or credits, or not reporting taxable income to avoid paying taxes. Tax planning, on the other hand, is a legitimate way of managing tax liabilities by using legal provisions, deductions, and exemptions provided by the tax laws.

To minimise Tax Amount - Obviously every person who has hard earned money does not want to pay it as tax and wants to reduce the tax liability.
To ensure economic stability - Your contribution towards the nation in the form of taxes helps in building a strong economy. So pay Tax wisely.
Diversify Portfolio - Making Financial planning and routing money to different investment channels helps in making a diverse portfolio of assessees.

You can also achieve all these benefits by getting online tax consultant from India’s leading tax consultancy firm. You just simply search ca for tax planning you will end up by finding us.

What are the benefits of Personal Financial Planning for Indian Assesses?

In India, taxes are an important source of revenue for the government. Taxes are levied on various sources of income, including salaries, business income, capital gains, and dividends. Failure to plan taxes can result in paying more taxes than necessary, which can impact an individual's financial goals and objectives. Here are some basic advantages of Tax Planning by Indian Assesses-

To minimise Tax Amount - Obviously every person who has hard earned money does not want to pay it as tax and wants to reduce the tax liability.
To ensure economic stability - Your contribution towards the nation in the form of taxes helps in building a strong economy. So pay Tax wisely.
Diversify Portfolio - Making Financial planning and routing money to different investment channels helps in making a diverse portfolio of assessees.

You can also achieve all these benefits by getting online tax consultant from India's leading tax consultancy firm. You just simply search ca for tax planning you will end up by finding us.

What are the Types of Tax Planning Strategies in India?

There are different types of tax planning strategies that Indian assesses can use to reduce their tax liabilities. These strategies depend on various factors, such as the source of income, type of business, and tax laws of the country. Let us discuss the most common types of tax preparation service strategies in India which are suggested by tax consultants in India.

Following are some of the methods of Financial planning recommended by tax consultants:
 

1. Short-range tax planning Method

   Here a person seeks for a short and quick option for their tax savings. Usually at the end of the year assesses find some option under which they can invest. This type of investment practice requires an instant amount to be invested for saving tax. No long term commitment is there under the short term planning method. This kind of investment creates minimal and small impact on your salary.
   Examples - It includes SIP, ELSS mutual Funds and some pension schemes.