How to plan income tax and minimise tax liability in India

New Delhi: As far as paying income tax, it feels good because it is an indicator of prosperity, and the taxpayer feels that our money is being used for the progress of the country.

But sometimes this amount is being used for inducement to the voters by way of giving free stuff, various types of subsidies and remuneration to meet out the political obligation only, then it pinches a lot.

But income tax is an important legal provision, and we should follow it honestly. However, as far as possible within the scope of the law, we should make the effort to minimise the tax liability through good planning.

Hope this article enlightens the facts to our readers in this regard. In the case of salaried employees, tax is painful when it is not deducted on an equated monthly basis, particularly, when at year-end most parts of the salaries exhaust in a deduction for Income Tax.

Thus, tax planning should start with the start of the financial year, and we should declare in advance to our employer about the expenses and investment and should adhere to the commitment by providing evidence of such expenses and investment when required by the management.