Tax planning refers to financial planning for tax efficiency. It aims to reduce one’s tax liabilities and optimally utilize tax exemptions, tax rebates, and benefits as much as possible. Tax planning includes making financial and business decisions to minimise the incidence of tax. This helps you legitimately avail the maximum benefit by using all beneficial provisions under tax laws. It enables one to think of their finances and taxes at the beginning of the fiscal year, instead of leaving it to the eleventh hour.

There are a lot of tax saving options available in India for taxpayers. These options provide a variety of exclusions and deductions that help to reduce the overall tax burden. Deductions are provided from Diffrent Sections, and eligible taxpayers can claim them. These deductions are applied to the total amount of tax owed. It is totally legal and, in fact, a wise decision when tax planning is done within the boundaries set by the respective authorities.

Objectives of Tax Planning
Tax planning is a major part of your overall financial planning. A reduced tax liability means fewer burdens on you, which will lead you to plan your financial goal as per your dreams and needs. Here are a few objectives of tax planning:

1. Reduced tax liability
2. Productive investment
3. Growth of economy
4. Litigation minimization
5. Economic stability

How to Get Started with Tax Planning?
Anyone can start planning their taxes in a few simple steps:

1. Start by taking your total income into account.
2. 2. Evaluate the taxable aspects of your income.
3. 3. Make use of deductions to reduce the total taxable income.
4. 4. Invest in tax-saving instruments.