Tax Planning

Tax Glossary Definition

Tax Planning

Tax planning involves analyzing a financial situation or plan from a tax perspective to ensure tax efficiency, often aiming to minimize tax liability through strategies like deductions, exemptions.

The strategic arrangement of income, expenses, and investments within legal limits to reduce overall tax burden and enhance long-term financial savings.

Example: Contributing ₹1.5 lakh to a Public Provident Fund (PPF) to avail a deduction under Section 80C.and investments in tax-saving instruments.

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