Tax planning involves making the best use of various tax laws to optimize the tax exemptions, deductions etc. and outgoing to make a financial plan for you. Tax planning is a year-round job and not just last moment tax-soap shopping, Tax planning, in fact, is an honest and rightful approach to the attainment of maximum benefits of the Income Tax Law within the framework.
Investment with a view to just saving tax is not justified. Saving form Tax should not be the primary objective, Tax is a subsidiary of your earnings. Hence proper planning is indeed needed to reduce the tax outgo. When earnings invested in the avenues recognized by law, they are not only relieved of the brunt of taxation but they are also converted into means of furthering earnings.
