As per the report published by the Finance Department, Govt. of India, more than 1.5 crores citizens in the country pay the Income Taxes by following the Administration guidelines. But, among these populaces, only a few taxpayers follow the tax planning procedure.

While asking the individuals collaborating with the taxation expert panel of Online Legal India™ for filing the taxes, we have found some astonishing reasons for not applying the tax planning. Some of them do not even know of such consultancy and a few didn’t bother to craft a plan for their payable taxes.

Why Tax Planning is Important?
 

The list of the importance of tax planning and consultancy is quite prolonged. Among them, the most important points can be noted as:

• It helps taxable individuals to save hard-earned money

Following the Govt. guidelines, citizens are mandated to file income taxes at a quite higher level. But, complete tax planning lets individuals save their money by paying a lesser amount of taxes through professional tax calculations.  

• Tax planning supports the Corporates to have a better economic growth

In these days of global economic uncertainty and lower bank interests, the necessity of tax planning reflects on the corporates especially. The tax advisors here analyze the financial records of the corporates to let them have enhanced economic progress.

• Reduces legal complications in terms of tax filing and calculation

In India, the taxation authority is very much strict in terms of tax collection and any illegal instance that could lead to lawful circumstances against the particular individual. Hence, another notable importance of tax planning and consultancy is legally saving the taxes so that the legitimate actions could be avoided.  

• Tax planning facilitates the retirement planning

In these days, only a limited number of the organization provides a retirement plan for the employees. So, having holistic tax planning with the help of efficient tax planners and consultants can help the individuals out with the retirement planning.  

• Proper tax planning consultancy always follow a long-term approach

Earning and spending money with an investment plan requires a long-term attitude. Understating the market trend, saving money needs time, and here the most notable importance of tax planning is noted – it always follows a long-term approach.  

• Every part of an individual’s Financial involvement falls under the tax planning

Financial activities have several branches of involvement and thus proper guidance is required in all these divisions with utmost care. A professionally held and designed tax planning would cover every slice of the financial involvement of an individual.

• Helps in choosing various investment plans through the taxable incomes

As per the legal provisions, investing in the marketplace through various spheres can be helpful in terms of tax saving. It is additional importance of tax planning to help the individuals choosing the best investment schemes and profitably saving the taxes.

So, have any further notes to be added as to why tax planning is so important in India? Feel free to join the conversation in the comment box below.