Income Tax Planning in India
Income Tax Planning in India
Income Tax Planning in India
INDIA
Priyanka Rohokale
UNDERTAKING BY CANDIDATE
Signature of Candidate
INDEX
1)Introduction of Tax
planning………………………………….4
2)Meaning of Tax
Planning……………………………………….6
3)Advantages of Tax
…………………………………………….8-10
4)Types of tax
planning……………………………………….11-12
5)Income tax
calculation……………………………………..14-19
6)Other types of income
tax…….............................20-22
7)Feature of tax
………………………………………………….25-27
8)Tax planning example………………………………………
28-30
9)Tax planning benefits
……………………………………..31-34
10) Tax planning &
managerial…………………………..36-39
11) Tax planning
salary……………………………………….41-43
12) Tax planning capital
gains…………………………….44-48
13) Tax planning
calculate………………………………….49-52
14) Tax
equation………………………………………………..53-55
15) Tax planning
suggestion……………………………….56-59
16) Conclusion……………………………………………..60
17) Bibligraphy……………………………………………61
Introduction of tax planning
4. To leverage productivity:
One of the core tax planning objectives is
channelizing funds from taxable sources to
different income-generating plans. This ensure
optimal utilisation of funds for productive
causes.
Types of Tax Planning
Most people merely perceive tax planning as a
process that helps them reduce their tax liabilities.
However, it is also about investing in the right
securities at the right time to achieve your
financial goals.
1. Short-range tax planning
Under this method, tax planning is thought of
and executed at the fiscal year. Investors
resort to this planning in an attempt to search
for ways to limit their tax liabilities legally
when the financial year comes to an end. This
method does not partake long-term
commitment. However, it can still promote
substantial tax saving.
2. Long-term tax planning
This plan is chalked out at the beginning of the
fiscal and the taxpayer follows this plan
throughout the year. Unlike short-range tax
planning, you might not be offered with
immediate tax benefits but it can prove useful
in the long run.
3. Permissive tax planning
This method involves planning under various
provisions of the Indian follows laws. Tax
planning in India offers several provisions such
asdeduction, exemptions, contributions, and
incentives. For instance, Section 80C of the
Income Tax Act 1961, offers several types of
deductions on various tax-saving instruments.
Limitations
Need of expert advice
Time consuming
Increase in cost
Continues amendment in tax laws
Procedural difficulty
Tax Deduction
What is Tax Deduction?
A tax deduction is an item you can subtract from
your taxable income to lower the amount of taxes
you own. You can choose the standard deduction a
single deduction at a fixed amount or itemize
deduction on schedule A of your income tax
return.
If the value of your itemized expenses is greater
than the standard deduction for your filing status
it makes sense to itemize. Allowable itemized
deduction include mortgage interest, charitable
gifts, unreimbursed medical expenses, and state
and local taxes.
KEY TAKEWAYS
Tax deduction are subtracted from your
taxable income thereby lowering the amount
of tax you you owe.
You can choose the standard deduction or
itemize your deduction on Schedule A of form
1040 or 1040 SR.
The tax cuts and Jobs act nearly doubled the
standard deduction and improved several tax
deduction.
The TCJA also eliminated or limited many
itemized deduction including the mortgage
interest deduction.
If you itemize your deduction be sure to keep
receipt to substantiate your expenses.
Website
http://Incometaxindia.gov.in
www.taxguru.in
www.google.com