Tax planning means making full use of income tax exemptions as well as deductions to reduce your tax liability. Most people think of it as an illegal activity. However, that is a complete myth. Tax planning is not only perfectly legal, but also encouraged by the government.
Difference between Tax Planning, Avoidance, and Evasion
Tax planning is quite different from tax avoidance or evasion. While tax planning is legal, tax avoidance means taking advantage of loopholes in law. Moreover, tax evasion means avoiding taxes by unethical means and is downright illegal.
Benefits of Tax Planning
- The biggest and most obvious benefit is that it reduces your tax liability. Thus saving money for your business.
- You get the benefit of making tax-free investments.
- You can defer the payment of tax on some investments.
- It will contribute to financial stability of your business.
- Planning taxes in a legal manner means minimum risk of income tax notices and other litigation.
Therefore, you can go ahead with tax planning for your business and rest assured that it is taking place within legal boundaries.
Ways of Tax Planning
As a business, you can use various means to reduce your overall income, thus reducing your tax liability. Some such means are:
- Employee salaries.
- Employee health benefits such as insurance.
- Deductions under sections 80C to 80U of the Income Tax Act.
- Other deductions under Section 80 such as 80-IA, 80-IB, 80-IC etc.
- Exemptions under Section 10 of the Income Tax Act, such as 10A. 10AA, 10B etc .
- Office expenses.
- Depreciation on Fixed Assets.
- Office and business transport expenses.
- Capital Gain exemptions.
- Donations for charity or religious purposes.
- Donations to political parties.
- Child care facilities for employees.
- Expenses on any other activities for employee welfare.
Documents for Tax Planning
To ensure maximum tax reduction, you need the following details and documents:
- Details of all business activities.
- A complete account of business revenue as well as expenses.
- Miscellaneous sources of income for business.
- Financial statements such as Balance Sheet and Profit and Loss Account of the business.
- PAN of your business.
- Income tax returns of your business for the past few years.
- Any non-routine transactions during the year, such as sale of business property or a business unit.
- Details of donations and investments made by your business.
Fee for Planning your Taxes
The professional fee starts from INR 1000 depending on your needs.
Timeline for Planning your Taxes
We will provide you with a complete tax planning solution within 3-4 business days after you provide us with all the details.
Why choose PocketLawyer for Tax Planning?
- Experienced and qualified professionals with more than 12 years experience.
- Access to highly qualified tax professionals anytime, anywhere in India.
- Fixed price. No hidden fees or long-term commitment.
- 100% satisfaction guaranteed. Our money back guarantee makes sure that you get complete satisfaction, every time you choose our services.
What is more?
- Our dedicated support team is always there to help you with any query or issue that you may have.
- Choosing PocketLawyer means the best service, at the best price.