Tax Planning is the reduction of tax liability by the way of exemptions, deductions and benefits that is a practice of the analysing financial situations based on tax efficiency point of view to invest and utilise the resources optimally. The Tax Planning covers several considerations including timing of income, size, selection of investment, retirement plan, tax filing status, deduction to create, and other expenditures. The Tax Planning objectives are: Reduced tax liability; Productive investment; Growth of economy; Litigation minimisation; Economic stability, etc.
Related Definitions in the Project: The Commercial Definitions: Project Controls
