I have decided to meticulously work out a plan for the financial year 2009-2010. As far as I know, every single individual wants to save up every penny that he pays as income tax. I was wondering whether it is possible and I think it is. Since I have learnt this hard way, I want to share it with you so that you don’t find it hard. Everything that is learnt by me will be shared and this is just for your information only. I am not a financial expert and you better get your advices from the right kind of people.
I feel at times is it right on my part to save up a penny that I would have paid as tax. The answer is it is right both ethically and legally. If government itself announces tax break then it means that even government wants people to do as it wants and when we go with the flow we get the benefit and when we try to break the flow, the pain starts.
It is not about evasion of tax, which is illegal and I don’t like people evading tax. It is not a good sign for us since tax does play a major role in the future plans of the nation. Tax planning is a legal way of not paying the tax and saving up the money for the later use. This is what I feel about tax planning. It is perfectly legal and ethical. The tax payer should know the concepts of Income Tax Rules and then act according to his needs.
The tax planning techniques that are around are many and I am sure every one of you will have a rough idea as to how to do it. This is just an extension. I will try to explain certain things that you are doing without knowing why or what or how you are doing. Tax planning is very important for any tax payer. I know salaried class does not get a major advantage as I always felt that Tax was designed by Businessmen and he made sure how he and his friends can always make money and pay less or no tax legally.
It is your turn to make money and pay less legally. Be informed and make a better move.