Income tax planning and benefits|Tax planning is an intellectual process that makes an individual's
financial position taxation effective. It refers to all the activities that taxpayers undertake to ensure that
their tax obligations are kept to a minimum, that they benefit from all available deductions,
deductions, and exemptions, and that they act in a coordinated manner. Therefore, it is a process of
analyzing the financial situation from the point of view of financial efficiency.
As a taxpayer, may have various sources of income:
Income from homeownership,
Payroll
Income from business or profession,
Capital gains and
Income from other sources
Download and Prepare One by One Form 16 Part A&B and Part B in Excel for the F.Y.2021-22
Regardless of your source of income, you must pay taxes to the government based on slide rates. Thus, the central focus of a good tax plan is to reduce the tax burden and increase savings, while respecting legal obligations.
Why choose tax planning?
Tax planning is an integral part of your job, and it's your loss if you don't make the most of the government's deductions and exemptions. It helps in achieving business and financial goals and provides various benefits to both large and small industries. Taxes will have a strong impact on your earnings, so a tax plan is important to managing your wealth. In the current dynamic environment, it's important to stay on top of tax law changes and have strategic plans so that you pay only what you owe.
Tax planning benefits
Tax credits, deductions, and refunds can be claimed when you know the taxes in detail. It also ensures that you plan your spending well and save more.
Tax planning saves you from strict penalties as the law reduces the possibility of tax evasion.
Download and Prepare One by One Form 16 Part B in Excel for the F.Y.2021-22
Lowers your tax rates and capital gains.
Allows you to have more control over when to pay taxes as a pre-tax
Reduce litigation by resolving tax disputes with different levels of authority.
There is a lot of disagreement between tax collectors and taxpayers because the former always try to extract the maximum from taxes.
Therefore, minimizing lawsuits through proper tax planning saves legal liability on taxpayers.
Ensures economic stability. Proper tax planning and management maintain a healthy flow of funds and can be allocated for the betterment of the country.
Helps improve productivity. Effective tax planning directs funds from taxable sources to various revenue generation options.
Download and Prepare at a time 50 Employees Form 16 Part A&B in Excel for the F.Y.2021-22
Retirement Planning
The absence of salary after retirement becomes a problematic situation if there are not enough funds to manage the expenses. Some tips on saving taxes for a secure future are available here:
A. Choose annual plans, such as the U/s 80C Seniors Savings Plan, which provide regular income in your old days and also help you save on taxes. It is available to people over the age of 60 and provides tax benefits.
B. Unit-linked insurance plans also serve as good money-building and tax-saving tools. ULIPs provide tax benefits for the U/s 80C and also allow you to withdraw tax-deductible earnings when the U/s 10D becomes due.
C. Contributing money to a traditional HRA will reduce your total income by the amount contributed
Download and Prepare at a time 50 Employees Form 16 Part B in Excel for the F.y.2021-22
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