Tax planning is a broad term that is used to describe the processes utilized by individuals and businesses to pay the taxes due to local, state, and federal tax agencies. The process includes such elements as managing tax implications, understanding what type of expenses are tax deductible under current regulations, and in general planning for taxes in a manner that ensures the amount of tax due will be paid in a timely manner.
One of the main focuses of tax planning is to apply current tax laws to the revenue that is received during a given tax period. The revenue may come from any revenue producing mechanism that is currently in operation for the entity concerned. For individuals, this can mean income sources such as interest accrued on bank accounts, salaries, wages and tips, bonuses, investment profits, and other sources of income as currently defined by law. Businesses will consider revenue generated from sales to customers, stock and bond issues, interest bearing bank accounts, and any other income source that is currently considered taxable by the appropriate tax agencies.
Tax Planning includes planning of income, expenses and investments in a tax efficient manner to gain maximum benefit of prevailing tax laws. The modifications of tax laws over time have opened up numerous avenues for planning your savings as per your needs. Sykes & Ray Financial Planners helps you carefully assess the various options and help you answer the following questions and more:-
Am I making optimum use of my 80C and 80D tax benefits?
What are the changes in tax laws that may affect my taxes, investments and savings?
What is the effect of Long-term capital gains and short-term capital gains on my investments?
Do I know the various tax havens and tax-shelter schemes applicable to me?
Just the year-end Tax Saving or Strategic Tax Planning. What is more beneficial?
Which is more beneficial for me - ELSS or PPF or both?