The goal of tax planning is to arrange your financial affairs so as to minimize your taxes. There are three basic ways to reduce your taxes, and each basic method might have several variations. You can reduce your income, increase your deductions, and take advantage of tax credits.
There is more to tax planning than exemptions available on savings. With Dr.Funds advice, you will pay the right amount of tax, not more and not less. You will also know how to tax proof your incomes and gains. After all, your capital is more productive in your hands and it can work wonders for you if planned properly.
- By careful planning, one can reduce tax liability substantially.
- Declaring at the start of the FY is most important.
- Do not wait for last minute. Start in April and use monthly investments to reduce risk. It will be easier on your pocket as well.
- Try and achieve tax planning and also planning for your needs simultaneously.
- Use tax efficient investment avenues. You should not be paying too much tax on their returns.