Direct tax collections are one of the easiest and safest ways of collecting revenues by the Government. In spite of our greatest reluctance all of us are in the tax net and contribute a sizeable portion of the revenue of the exchequer. The law provides for levying of taxes at different stages and forms of income . On the contrary it provides impetus for effective savings out of the income generated by us through which we can reduce our tax liability. Such investments provide dual purpose for both the assessee and for the Government. On the one hand it reduces tax liabilities in our hand and on the other hand it provides sizeable funds in the hands of the Government
Our main aim in tax planning is to pay minimum taxes by abiding with the legal statute and maximizing return on our investments by investing on the correct instruments at the correct time of our life.
I endeavor herein below in brief some of the important aspects in this respect:
Some people have a wrong notion that tax planning is useful only once you reach an advanced stage of life or are well settled in a business or profession. That is not true. In fact, the best time to start tax planning is right from day one when you start having any income in your name. The sooner you enter the wonderland of tax planning, the better it will be for you in the long run. The benefits of tax planning adopted in the initial years of life will come in very handy when you are planning your retirement. The longer the duration of your tax planning, the better results it will yield to you in years to come. Thus, the right time to begin tax planning is when a person becomes a major. And, it should be continued in right earnest, year after year. Here is how …
Tax Planning upon Becoming a Major
Tax Planning Once You Start Earning
Tax Planning When You Get Married
.Tax zplanning after a Decade of Your Marriage
Tax Planning after the Marriage of Your Children
Tax Planning for Senior Citizens
Conclusion
Intelligent tax planning calls for changes in approach every few years. It is, therefore, recommended that you must review your investment and tax planning perspective at least every decade and reorient it depending on the facts and circumstances of the situation.