Professional Documents
Culture Documents
Tax Planning
Tax Planning
• Tax Avoidance
• Tax Evasion
• Tax Management
• Tax Planning with reference to
Financial Management Decisions
Capital Structure
Inter Corporate Dividend and
Transfer
Dividend policy
Bonus Shares
INTRODUCTION
• The avid goal of every taxpayer is to
minimize his Tax Liability. To achieve this
objective taxpayer may resort to following
Three Methods :
– Tax Planning
– Tax Avoidance
– Tax Evasion
• It is well said that “Taxpayer is not
expected to arrange his affairs in a such
manner to pay maximum tax “ . So, the
Assessee shall arrange the affairs in a
manner to reduce tax.
• But the question what method he opts
for ? Tax Planning, Tax Avoidance, Tax
Evasion !
Tax Planning
• Tax Planning involves • Investment in securities
provided u/s 10(15) .
planning in order to • Interest on such
avail all exemptions, securities is fully
deductions and rebates exempt from tax.
• Exemptions u/s 10A,
provided in Act. The 10B, and 10BA
Income Tax law • Residential Status of the
itself provides for person
various methods for Tax • Choice of accounting
system
Planning, • Choice of organization.
Tax Planning
• Short term tax planning.(Saving in tax)
• Long term tax planning.(Shares given to son
or spouse)