Our Mudra Associates team will assist and plan for taxes and reduce your tax liabilities as per the laws. So that you have more income to spent at the end.
Tax planning is the analysis of one’s financial situation from a tax efficiency point of view so as to plan one’s finances in the most optimized manner. Tax planning allows a taxpayer to make the best use of the various tax exemptions, deductions and benefits to minimize their tax liability over a financial year. Tax planning is a legal way of reducing income tax liabilities, however caution has to be maintained to ensure that the taxpayer isn’t knowingly indulging in tax evasion or tax avoidance.
Types of Tax Planning:
- Purposive tax planning: Planning taxes with a particular objective in mind
- Permissive tax planning: Tax planning that is under the framework of law
- Long range and Short range tax planning: Planning done at the start and end of a fiscal year respectively.
Tax liability is the amount of money you owe to tax authorities. Both individuals and businesses can have tax liabilities.Tax liabilities are current liabilities.Failing to pay a tax liability can result in back taxes, a tax lien, penalties, interest, and even jail time.
The government uses tax payments to fund social programs and administrative roles.
Types of Tax Liabilities:
- Earned Income Tax Liabilities: Working individuals are generally required to pay income tax
- Business Tax Liabilities : Your business is required to pay taxes on its profits.
- Self-employed Tax Liabilities : Self-employed individuals pay these taxes in the form of self-employment tax