1. TAX PLANNING
Tax planning may be defined as an
arrangements of one’s financial affairs in such
a way that without violating in any way the
legal provision of an act , full advantage is
taken of all exemptions, deduction, rebates,
permitted under act, so that the burden of the
taxation on an assessee , as far as possible the
least.

2. PRECAUTION IN TAX PLANNING
 Require proper analysis
 Can’t be attempted in isolation
 Should view all direct tax laws
 Should not be based on tax avoidance
 Tax planning is not possible without tax
management

3. OBJECTIVES OF TAX PLANNING
 Claim deductions
 Reduction in tax liability
 Productive investments
 Reduction in cost
 Healthy growth of economy
 Employment generation

4. IMPORTANCE OF TAX PLANNING
 For tax payer it helps in reduce tax
liability
 For country it helps in starts new scheme
for the progress of nation
 For society it helps in the taxed amount
used in invested in industry and can
establish new company which also provide
employment.