Planning must be done with business objectives in mind and should be flexible enough to incorporate possible changes in the future. Long range and Short range tax planning: Planning done at the start and end of a fiscal year respectively. The primary objectives of your tax planning should be the following:
Which is the best way to do tax planning?
The common ways to do this includes taking deductions on business transport, health insurance of employees, office expenses, retirement planning, child care, charitable contributions etc. Through the various tax deductions and exemptions provided under the Income Tax Act, a company can substantially reduce its tax burden in a legal way.
What is the purpose of corporate tax planning?
Corporate tax planning is a means of reducing tax liabilities on a registered company. The common ways to do this includes taking deductions on business transport, health insurance of employees, office expenses, retirement planning, child care, charitable contributions etc.
When to revisit your business plan for growth?
Once you’ve reviewed your progress and identified the key growth areas that you want to target, it’s time to revisit your business plan and make it a road map to the next stages for your business.
What do you need to know about tax planning?
However, it should be done in a legal manner. What is Tax Planning? Tax planning is the analysis of one’s financial situation from a tax efficiency point of view so as to plan one’s finances in the most optimized manner.
When does a 52 week tax year end?
Tax Years. Fiscal year – 12 consecutive months ending on the last day of any month except December. A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. Unless you have a required tax year, you adopt a tax year by filing your first income tax return using that tax year.
What is the purpose of tax planning in India?
Tax planning allows a taxpayer to make the best use of the various tax exemptions, deductions and benefits to minimize their tax liability over a financial year. Tax planning is a legal way of reducing income tax liabilities, however caution has to be maintained to ensure that the taxpayer isn’t knowingly indulging in tax evasion or tax avoidance.
