Paying taxes is our duty – definitely (and statistically) not one of peoples’ favourites. Almost every salaried man groans when tax is being deducted from his salary.
We cannot completely do away with taxes but we can surely reduce them to a great extent. Tax evasion is illegal. Tax Planning isn’t.
Each year, the budget consists of provisions and exemptions to reduce tax liability. This is where we come in the picture.
Based on each individual’s profile, we apply exemptions and provisions to reduce their tax liability.
Everyone taxpayer groans to pay taxes
Financial planning and tax planning are closely connected due to the fact that taxes are a huge expense as you go through life. If you become very wealthy, taxes will be your single greatest expense over the long run, thus planning to reduce taxes is a critical part of the overall financial planning process.
Income Tax planning is one of the most important aspects of personal finance. It forms an integral part of our savings plans. However, 90% of financial mistakes by individuals in India are made during the tax planning season.
Most of the individuals fail to assess their tax liability and postpone the tax savings to last minute. Hence in India, tax planning is given more importance only during the last two quarters of the financial year. Due to these reasons, they end up paying unnecessary taxes or opt for unnecessary tax savings. Strategies for income tax planning in India often concentrate more on deduction under section 80C of the income tax code. Tax planning should be considered as an integral part of an overall financial plan. This would help individuals in optimizing their tax planning strategies.
You may have often encountered problems in assessing your actual tax liability. As a result, you end up paying more than required amount in form of taxes or buy unnecessary products. Also taking tax planning tips from friends and family who may not be experts affects your overall financial plan.
Good tax planning services advocates paying taxes smartly by utilizing the provisions in the Tax Laws to minimize the tax liability. The best tax saving plan will include a holistic view of the impact of your tax savings on your financial goals.
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