Tax Planning is a process of strategically reducing your tax liability through the finest use of all accessible allowances, exclusions, deductions, exemptions, etc. If executed correctly, the right portfolio helps trim down your taxable income therefore reducing taxes.
We all know at least one or two individuals who did not plan their taxes until the end of the financial year. Unfortunately, this last minute running around forces individuals to make hasty decisions without understanding the intricacies of the costs associated with the product and the fine print which we all miss in the extra long offer documents.
Tax planning should be done in advance as it provides individuals’ ample time to understand and evaluate different options available in the market, which best suits an individual’s financial needs.
A qualified tax professional can help you develop a financial plan which structures your income and estate in a tax-friendly manner. You also receive specific advice on how to invest your money in ways which let you retain a higher percentage of your profits.
A qualified professional not only understands your tax requirements but helps in :
- 1. Studying your current investments.
- 2. Analyzing your current tax structure.
- 3. Short-listing products which best suit your requirements.
- 4. Recommending a holistic Tax planning solution from a long-term wealth creation.
- 1. Declare your investments at the beginning of the financial year.
- 2. Never wait last minute. Start early and use monthly investments to reduce risk.