Tax planning involves strategic financial moves aimed at reducing tax liabilities while maximizing savings within established financial regulations.
Objectives of Tax Planning:
- Tax Minimization : Decrease taxable income through lawful means.
- Savings Maximization : Utilize deductions for increased savings.
- Compliance Assurance : Adhere to financial laws while optimizing savings.
Strategies for Tax Planning:
- Section 80C Investments : Utilizing deductions under Section 80C for investments like PPF, ELSS, etc.
- Tax-Saving FDs : Investing in Tax-Saving Fixed Deposits under Section 80C for tax benefits.
- National Pension System (NPS) : Availing tax benefits under Section 80CCD for contributions to NPS.
