2. THERE IS NOTHING WHICH HURTS MORE THAN PAYMENT OF TAXES.. 3.
THREE COMMMON PRACTICE TO SAVE TAXES :- I. TAX PLANNING II. TAX
AVOIDANCE III. TAX EVASION 4. TAX AVOIDANCE : TAX AVOIDANCE IS
MINIMIZING THE INCIDENCE OF TAX BY ADJUSTING THE AFFAIRS IN SUCH A
MANNER THAT ALTHROUGH IT IS WITHIN THE FOUR CORNER OF THE LAWS. 5.
TAX EVASION : IT IS ILLEGAL AND UNETHICAL. 6. TAX PLANNING : 7.
MEANING OF TAX PLANNING : TAX PLANNING CAN BE DEFIND AS AN
ARRANGEMENT OF ONES FINANCIAL AND BUSINESS AFFAIRS BY TAKIN
LEGITIMATELY IN FULL BENEFIT OF ALL DEDUCTIONS, EXAMPTIONS,
ALLOWONCES AN REBATES SO THAT TAX LIABILITY REDUCES TO MINIMUM. 8.
KEY POINTS TO BE REMEMBERED :- ITS IS NOT AVOIDANCE TO PAYMENT OF
TAX. TAX PLANNING SHOULD NOT BE DONE WITH AN INTANT TO DEFRAUD THE
REVENUE. ALL TRANSACTIONS WITH RESPECT TO TAX PLANNING SHUOLD BE IN
CORRECT FORM AND SUBSTANCE. TAX PLANNING WORK WITHIN THE FRAMEWORK
OF LOW AND ITS NOT ILLEGAL. 9. RIGHT TO PLAN TAX LIABILITY . THE
SUPREME COURT HELD IN CASE OF MC DOWELL & CO. V CTO(1985) HAS
SAID THAT IT IS TRUE THAT PLANNING MAY BE LEGITIMATE PROVIDED AND
IT IS WITH FRAMEWORK OF LAW. 10. OBJECTIVE OF TAX PLANNING :
REDUCTIONS OF TAX LIABILITY. MINIMISATION OF LITIGATION. PRODUCTIVE
INVESTMENT. ECONOMIC STABILITY. 11. IMPORTANCE OF TAX PLANNING :
ITS HELPS TO DEAL WITH THE BURDENOF DIRECT AND INDIRECT TAXATION
DURING INFLATIONS. HELPS IN PROPER EXPENCES PLANNING, CAPITAL
BUDGET PLANNING, SALES PROMOTION PLANNNING ETC. 12. ESSENTIALS OF
TAX PLANNING : UPTO DATE KNOWLEDGE OF TAX LAWS AND AWAARENESS OF
JUDGMENTS MADE THROUGH VARIOUS DECISIONS OF THE COURTS. THE
DISCLOSURE OF ALL MATERIAL INFORMATION AND FURNISHING THE SAME TO
THE IT DEPARTMENT. TAX PLANNING SHOULD NOT JUST COMPLY LEGAL
PROVISIONS AS STATED BUT SHOULD BE WITHIN THE FRAMEWORK OF LAW. 13.
AREAS OF TAX PLANNING IN CONTEXT OF INCOME TAX ACT 1961: 14. 1. FOR
INDIVIDUALS : 15. 2. AT THE TIME OF SETTING UP OF NEW BUSINESS
ENTITY: FORMS OF ORGANISATION/ OWNERSHIP PATTERN : LOCATIONAL
ASPECTS : NATURE OF BUSINESS : 16. 3.FOR THE BUSINESS ENTITIES
ALREADY IN EXISTENCE : TAX PLANNING IN RESPECT OF CORPORATE
RESTRUCTING. TAX PLANNING IN RESPECT OF FINANCIAL MANAGEMENT. TAX
PLANNING IN RESPECT OF EMPLOYEES REMUNERATIONS. TAX PLANNING IN
RESPECT OF SPECIFIC MANAGERIAL DECISIONS. TAX PLANNING IN RESPECT
OF FOREIGN COLLABORATIONS AND JOINT VENTURE AGREEMENTS. TAX
PLANNING IN THE VARIOUS DOUBLE TAXATION AVOIDANCE AGREEMENTS. 17.
THANK YOU
