{"id":7583,"date":"2018-06-26T10:40:28","date_gmt":"2018-06-26T05:10:28","guid":{"rendered":"https:\/\/www.antworksmoney.com\/blog\/?page_id=7583"},"modified":"2018-07-20T11:50:31","modified_gmt":"2018-07-20T06:20:31","slug":"tax-planning","status":"publish","type":"page","link":"https:\/\/www.antworksmoney.com\/blog\/tax-planning\/","title":{"rendered":"Tax Planning"},"content":{"rendered":"

In India, there are a number of tax saving options for all taxpayers. These options allow for a wide range of exemptions and deductions that help in limiting the overall tax liability. The deductions are available from\u00a0Sections 80C through to 80U\u00a0and can be claimed by eligible taxpayers. These deductions are made against the quantum of tax liabilities. There are various other sections under the Income Tax<\/a> Act, 1961 that can reduce your tax liabilities such as exemptions and tax credits.<\/p>\n

When tax planning is done inside the frameworks defined by the respective authorities, it is fully legal and in fact a smart decision. However, using shady techniques to avoid tax payments is illegal and you may get into trouble for doing so. Tax saving practices include tax avoidance, tax evasion and tax planning. Out of these tax planning is the only legal manner of reducing your tax liabilities. The government offers the different opportunities to save on taxes with the intention of reducing tax burden on a taxpayer through legal income tax planning methods.<\/p>\n

Corporate Tax Planning:<\/h2>\n

Corporate tax planning is a means of reducing tax liabilities on a registered company. The common ways to do this include taking deductions on business transport, health insurance of employees, office expenses, retirement planning, child care, charitable contributions etc. Through the various tax deductions and exemptions provided under the Income Tax Act, a company can substantially reduce its tax burden in a legal way. Once again, tax planning should not be confused with tax avoidance and all the planning should be done within the framework of the law.<\/p>\n

Increasing profits for a company results in higher tax liabilities. As such, it becomes imperative for them to devote enough time on tax planning to reduce the liabilities. With proper tax planning, the\u00a0direct tax\u00a0and\u00a0indirect tax\u00a0burden is reduced at times of inflation. It also assists in the proper planning of expenses, capital budget and sales and marketing costs, among others. A good tax planning results out of:<\/p>\n