Tax planning in a nutshell:
Tax planning is like organizing your finances to pay the least amount of tax possible. It's about understanding the tax rules and using them to your advantage. Why is tax planning important? Tax planning can save you a lot of money. By understanding the tax laws and making smart financial decisions, you can reduce your tax liability and keep more of your hard-earned cash. Here are some useful tips for tax planning: 1. Know your tax bracket: Your tax bracket is the rate at which you pay taxes on your income. Knowing your tax bracket can help you make decisions about how much income to claim and how much to save. 2.Take advantage of deductions and credits: There are many deductions and credits available to taxpayers. Deductions reduce your taxable income, while credits directly reduce your tax bill. 3.Consider tax-advantaged retirement plans: Retirement plans like NPS, Life Insurance Pension Plans offer tax advantage. 4.Seek professional advice: If you have complex finances or need h