Meaning of tax planning Types of tax planning Advantages of tax planning

1. TAX PLANNING
PRESENTATION BY
CHAITHRA R.

2. INTRODUCTION:-
Tax planning is a focal part of financial planning.
It ensures savings on taxes while simultaneously
Conforming to the legal obligations & requirements
Of the income tax act, 1961. The primary concept of
tax Planning is save money & mitigate one’s tax burden.

3. MEANING OF TAX PLANNING
Taxes can eat into your annual earnings. To counter
this, tax planning Is a legitimate way of reducing your
tax liabilities in any given financial year . It helps you
utilize the tax exemptions, deductions, & benefits
offered by Authorities in the best possible way to
minimize your liability.

4. Types
of tax
plannin
g
Long
range
tax
planning
Short
range tax
planning
Permissive
tax
planning
Purposive
tax
planning

5. Types of tax planning
1.long- range tax planning:
This plan is chalked out the beginning of the fiscal & the taxpayer fallows this plan throughout
this year. Unlike short-range tax planning ,you might not be offered with immediate tax
benefits but it can prove useful in the long run.
2.Short – range tax planning:
Under This method, tax planning is thought of & executed at the planning in an attempt to
search for ways to limit their tax liability legally when the financial year comes to an end. This
method does not partake long-term commitment . However , it can still promote substantial
tax savings.

6. 3.Permissive tax planning
This Method involves planning under various provisions of the Indian taxation laws. Tax
planning in india offers several provisions such as deduction, exemptions, contributions,
& incentives. For instance, section 80C of the income tax act, 1961, offers several types
of deductions on various tax-saving instruments.
4.Purposive tax planning:
Purposive tax planning involves using tax- saver instruments with a specific purpose in
mind. Ensures that you obtain optimal benefits from your investments. This includes
accurately selecting the appropriate investments, creating an apt agenda to replace
assets (if required), & diversification of business & income assets based on your
residential statu.

7. ADVANTAGES OF TAX PLANNING
A) To minimize litigation
B) To reduce tax liability
C) To ensure economic stability
D) To leverage productivity
A) To minimize litigation:
To litigate is to resolve tax disputes with local, federal, state, or foreign tax authorities. there is often
friction b/w tax collectors & taxpayers as the former attempts to extract the maximum amount
possible while the letter desires to keep their tax liability to a minimum. Minimizing litigation saves
the taxpayer from legal liabilities.

8. B) To Reduce Tax Liabilities:
Every Tax Payer wishes to reduce their tax burden & save money for their future. You can
reduce your payable tax by arranging your investments within the various benefits offered
under the income tax act, 1961. the act offers many tax planning investments schemes that
can significantly reduce your tax liability.
C)To ensure economic stability:
taxpayers’ money is devoted to the betterment of the country. Effective tax planning &
management provide a healthy inflow of white money that results in the sound progress of
the economy. This benefits both the citizen & the economy.

9. D)To Leverage productivity:
One Of The Core tax planning objectives is channelizing funds from taxable source to
different income-generating plans. This ensures optimal utilization of funds for productive
causes.
Thank you