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Types of Tax Planning Tax Planning can be understood as the activity undertaken by the assessee to reduce the tax liability by making optimum use of all permissible allowances, deductions, concessions, exemptions, rebates, exclusions and so forth, available under the statute.  

Short range tax planning: Short range tax planning refers to year to year planning to achieve some specific or limited objective. Long range planning: Long range planning involves entering into activities, which may not pay off immediately, e.g. transfer of assets without consideration to minor child. The income will be clubbed to transferor upto the child in minor but afterward, this will be an income of child. Permissive tax planning: Permissive tax planning is a planning for tax under the express provisions of tax laws. Indian tax laws offer many exemptions, rebates, deductions and incentives. Purposive tax planning: This planning is based on the measures which circumvent the law. The permissive tax planning has to express sanction of the Statute while the purposive tax planning does not carry such sanction.

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Types of Tax Planning  

Tax Planning can be understood as the activity undertaken by the assessee to reduce the tax liability by making optimum use of all permissib...

Types of Tax Planning  

Tax Planning can be understood as the activity undertaken by the assessee to reduce the tax liability by making optimum use of all permissib...

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