AN ANALYTICAL STUDY OF TAX PLANNING OF AN INDIVIDUAL TAXPAYER IN PUNE

Abstract

An effective tax strategy is vital for successful financial planning. Paying tax is always painful task for individual. Tax can be reduced either by evasion or avoidance or tax planning. Tax planning is important for every individual to reduce their tax liability and compliance with the income tax rules. Theindividual must know different provisions of tax planning available in the laws for enjoying the benefits of tax planning. Now a days an individual has become more aware about tax planning and with rise in income level. The income tax law provides various methods for tax planning. Tax planning is arrange financial affairs in such a manner that without breaking up any law individual can take full advantage of all exemptions, deductions, rebate and reliefs allowed by law so that tax liability will be reduced. Government provides deductions, reliefs or rebate for the benefits of economy and society. The primary objective of the present study is the analysis of awareness of tax planning measures and measures adopted by individuals.