There is nothing more important than proper tax planning. It is absolutely vital and must happen before the Tax year ends! Proper tax planning also often leads to proper retirement planning along with savings in the form of retirement contribution
Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency, with the elements of the financial plan working together in the most tax-efficient manner possible. Tax planning is an important part of a financial plan, as reducing tax liability and maximizing eligibility to contribute to retirement plans are both crucial.
Tax planning is an arrangement of financial activities in such a way that maximum tax benefit, as provided in the income-tax act is availed of. It envisages use of certain exemption, deductions, rebates and reliefs provided in the act.