Tax Planning.

Dhruv Desai.
Shriyans Jain.

Tax Planning.
Tax planning is the analysis of ones financial situation from a tax
efficiency point of view so as to plan ones finances in the most
optimized manner.
Tax planning allows a taxpayer to make the best use of the various
tax exemptions, deductions and benefits to minimize their tax
liability over a financial year.
Tax planning is a legal way of reducing income tax liabilities, however
caution has to be maintained to ensure that the taxpayer isnt
knowingly indulging in tax evasion or tax avoidance.
The deductions are available from
Sections 80C through to 80U and can be claimed by eligible taxpayer
s
.

Types Of Tax Planning.

Purposive tax planning: Planning taxes with a
particular objective in mind.
Permissive tax planning: Tax planning that is
under the framework of law.
Long range and Short range tax planning:
Planning done at the start and end of a fiscal year
respectively.

Tax Planning.
Tax planning with references to;
1. Location of business.
2. Nature of business.
3. Form of organization.

Location of Business.
The tax incentives which are available with regard
of the location of the business are as follows:
Profits from Industrial Undertaking Located
in the state of Jammu and Kashmir.
1. 100% deduction is allowed in respect of profits
derived from industrial undertaking located in
J&K for the first 5 years and thereafter for the
next 5 years @30% for the company assesse
and 25% for the non-company.

 Profits from certain Undertaking or

Enterprises in certain special category
States(Sec.80-IC).
1. 100% deduction is allowed in respect of profits
derived from certain undertaking set up by the
end of march in certain special category states
for 10 assessment years.
. Profits and Gains from Certain Undertaking
In North-Eastern States(Sec.80IE).
1. 100% deduction is allowed for 10 consecutive
assessments for the profits from undertaking set
up in North-Eastern states during the financial
year 2007-2008 to 2016-2017.

 Profits and Gains from business of hotels

and Convention Centre's.
1. 100% is allowed for 5 consecutive assessment
years for the profits from the business of hotels
and convention centers, set up during financial
year 2007-2008 to 2009-2010 in the National
Capital Territory Of Delhi, districts of Faridabad,
gurgaon, Gautam Budh Nagar and Ghaziabad.

Nature of Business.
Tax Planning is relevant while deciding upon the
nature of business
Certain Business which are granted special tax
treatment
Free Trade Zone
Tea Development account
Shipping Business

Forms of Organization.
Selection of particular form of organization
depends not only on the magnitude of financial
requirement but also on the tax consideration

Tax liability is an important consideration guiding

the choice of a legal form of business organization

Sole Proprietorship
Most common form of organization
Exemption for the year 2013-2014
Beside deduction which are allowed are to all
assesses are as follows

Hindu Undivided Family

Joint Hindu Family pays tax on its total income
Family can pay reasonable remuneration to the
Karta and other family members for their service
to the business

Partnership Firm
Partnership form of organization is easy to
establish
Share in the profit of the partnership firm is
exempt from tax under section 10 (2A) of the
income tax act
Advantages of partnership firm:
1. Allowability of remuneration.
2. If spouse of a individual having a substantial
interest in a company she receives
remuneration.

Thank you.!!