Tax & Investment Planning

Are you working with a qualified tax professional? Is the rest of your financial plan coordinated with your tax plan? Would you benefit from more tax-aware strategies?

Tax planning needs differ from person to person and is determined by factors like income, needs, goals and priorities. It is not as simple as it appears. The biggest fallacy would be to adopt the universal methods of tax planning. Tax planning strategy that everyone adopts is based on a simple but skewed thinking of reducing tax liability…at any cost. Inevitably, though tax liability is reduced one finds himself / herself invested in wrong products or have severe cashflow strain.

Tax planning is an excellent benefit provided by the tax system of the country and must be utilised in totality. However while doing so one needs to assess and plan tax in a manner that benefits income, needs, broad financial plan and personal financial outlook in years to come. A tax planning investment may be used to manage income tax, insurance, investment & retirement goals all in a single shot and without exceeding investable surplus.

There is very limited tax planning that can be done for salaried individuals. Often there is not much that can be done for people in a higher income bracket as their provident fund itself pretty much takes care of significant portion of benefits available.

There is however quite a lot that can be done for self employed individuals viz:
  Reviewing current tax planning & management efficacy
  Budgeting & planning expenses
  Cash Management methodology
  Optimisation Strategy for making fund provisions from time to time
  Modification of internal rules in a partnership company
  Planning salaries of directors of a private limited company
  Effective management of TDS, advance tax, service tax, VAT and other tax & tax related payments
  Active monitoring, scheduling, planning & making tax payments on time; thus avoiding interest and penalties
  Computation of income & calculation of income and capital gain taxes
  Creating assets and using them to maximum benefit
  Application of PAN, PIO, KYC

Filing of income tax return
Facilitation of Tax Audit
Consultation on any tax matter
And much more…

We believe tax management & planning should be optimised to exploit it for multiple inherent advantages.
Tax management & planning cannot be a standard defined service and the solution for each situation can be quite different.