Tax planning simply means claiming all available benefits and deductions to reduce your tax liability. There is nothing illegal about reducing your tax liability. But this is true only if you use the legal method to do it. In fact, the government encourages citizens to use all legal options that may reduce their tax liability. Every year, the finance budget announces various tax benefit schemes. You can make full use of such beneficial schemes.
Types of Tax Planning
As an individual, you can save tax in the following ways:
80C investments such as life insurance premium, PPF, tax saving Fixed Deposits etc.
House rent deductions.
Investing money in mutual funds, unit linked plans, SIPs, ELSS, NSC etc.
Medical Insurance Premium for yourself and your family.
Donations to national funds such as the PM relief fund.
Aid to religious or charitable organizations.
Donations to political parties.
Investing capital gains in government approved schemes.
Moreover, some incomes are exempt from tax. Some examples are agricultural incomes and profit from the sale of long-term equity shares. So, you can plan your purchase and sale of shares in a manner that saves you from tax liability.
Documents for Tax Planning
You need to provide us with the following documents and details:
A copy of your PAN card.
Your rent receipts (if any).
Bank Account statements for all your accounts.
Documents like tuition fee receipts, medical bills, insurance premium receipts etc.
Loan statements and copies of fixed deposit certificates.
Proof of other investments such as NSC, Mutual Fund etc.
Please note that we will provide you with a specific checklist according to your needs.
Timeline for Tax Planning
The timeline will vary with your needs. But in most basic cases, we will prepare a comprehensive tax saving plan for you within 2 days.
Fee for Tax Planning
The professional fee for individual tax planning starts from INR 1000 and varies as per your needs.
How PocketLawyer Can Help?
If you need any help with tax planning, we at PocketLawyer can help. We will connect you with expert professionals. These professionals are experts in taxation laws. You can post your requirement
and they will assist you with the entire legal process at affordable prices.