Tax planning is the process of analyzing one’s financial situation to maximize tax efficiency. It helps in minimizing tax liabilities while complying with legal regulations.

Short-Term Tax Planning – Done at the end of the fiscal year to reduce tax liabilities.

Long-Term Tax Planning – Strategic planning at the beginning of the financial year for future benefits.

Permissive Tax Planning – Utilizing legal provisions to reduce tax liability.

Purposeful Tax Planning – Ensuring tax efficiency through proper financial decisions.

Equity Linked Savings Scheme (ELSS) – Mutual funds with tax benefits under Section 80C.

Public Provident Fund (PPF) – A long-term savings scheme with tax exemptions.

National Pension System (NPS) – Retirement savings with tax deductions under Sections 80C and 80CCD.

Life Insurance Premiums – Eligible for tax deductions under Section 80C.

Fixed Deposits (FDs) – 5-year tax-saving FDs qualify for deductions.

Reduces Tax Liability – Smart tax-saving investments minimize tax burdens.

Wealth Creation – Helps in securing financial growth through planned investments.

Retirement Planning – Supports future financial stability.

Ensures Compliance – Fulfills legal tax obligations effectively.