Tax Planning is essentially a legal recourse for minimizing ones tax liability. It can be defined as a systematic exercise undertaken within the scope of law to minimize ones tax liability with the optimum use of available exemptions, deductions, reliefs and allowances. Since tax planning is within the framework of the legal provisions, a tax payer is legitimately entitled to arrange his affair in a manner so as to reduce his tax liability to the minimum. Further, this position has been time and again upheld by the courts through various judicial precedents.
However, it is pertinent to note that under the pretext of Tax planning, a Tax payer cannot indulge in Tax Avoidance or Tax evasion as the line between the two is extremely fine. While the result of both is same (i.e. Minimizing Tax outgo) in case of Tax evasion or Tax avoidance the transaction are arranged in manner so as to circumvent the provision of law the malafide intention of not paying Taxes through Fraudulent techniques to circumvent the tax law wilful under reporting of income or inaccurate claim of deduction would be an example of Tax evasion.
Effective tax planning is the cornerstone of Comprehensive Wealth Management. At efiler, through collaborating with experienced certified Tax consultant, we assist in our client to establish a goal the most effective ways to position their wealth, utilizing all of the Income tax rules and regulations most favorable to your needs. Planning strategies are customized as per your requirement which includes Tax Favored Wealth Accumulation and ultimately distribution to generations of their choice.
Personal tax is complex and subject to an enormous upheaval because of frequents changes in tax laws. We ensure you get maximum tax benefits availed and tax liability are minimised.
The goal of tax planning is to arrange your financial affairs so as to reduce and save your taxes. Three basic rules to reduce your taxes
- – Reduce your income
- – Increase your deductions
- – Take advantage of tax credits
efiler will help you minimize your tax outgo and maximize your in income in hand. You can select the same by optimizing your Cost to the Company i.e your total annual salary and reimbursement package.
Use our online CTC Optimizer calculated on the monthly and annually basis, helps yourself trying different permutations and combinations within the salary and other reimbursement heads which will help you in assessing you in gauging your Income TDS on the monthly, Current CTC Tax Structure and Going to be CTC Tax Structure. Our online report will help you the best possible salary structure you can ask from your employer.