What is the Tax Planning process?

Tax planning is the legal procedure of reducing the payable tax liabilities in a particular financial year. It includes the course of actions such as managing tax implications, deductible taxes, and proper planning to identify the amount of tax due. It plays a critical role in budget efficiency as well.

Who is a Tax Advisor? / Tax Planner / Financial Planner?

In the Business Accounting terminology, the Tax Advisors are the financial experts specialized in any Tax-related instances. Be it filing an individual tax or the annual compliance filing for an organization, financial tax consultants play a huge role in tax planning and reducing the payable tax amount while following the Act’s provisions.

Who will manage my Tax Planning procedure?

Our team consists of financial advisors, taxation experts, financial planners, and qualified CAs who will manage the complete financial affairs of an individual or organization to manage the Tax Planning method.

Which Act of the Indian Govt. oversees the tax planning procedure in the country?

In India, the Income Tax Act, 1961 oversees the entire aspects of the tax planning procedure.

How many days the Tax Planner will take to complete the tax planning process?

The tax planning process is conducted through daily updates, financial statements, and transaction records. It is advisable to continue with the process till the taxes are filed following the completion of a Fiscal Year.

What is the Importance of Tax Planning for a Startup in India?

By Online Legal India Published On 23 Mar 2021 Updated On 18 Jan 2023 Category Income Tax

In the contemporary financial era, Startups or budding ventures are leading the marketplace with innovative ideas and an enthusiastic approach towards business. But, to function smoothly, it is also important for the startups to implement a few effective strategies.

Amongst them, tax planning is one of the essential compliances for the startups as it not only helps the new businesses to save taxes legally but also having financial stability within the organization. Now, let us understand what is called tax planning?

What is Tax Planning?

It is the systematic financial process for minimizing the taxable amounts by efficiently maintaining the business activities, taxation return filings while following all the legal provisions and helping the organization or an individual to save the hard-earned money.

In the process of tax planning for new business or startups, the tax consultants regularly manage all the financial transaction records, investments, cash flow, expenses of the organization to ensure a deducted amount of levied tax, and finally guide the startup to file the taxes within the given timeline.

Following the provisions of the Income Tax Act, 1961 of the Indian Govt. every entitled individual and business ventures are bounded to pay the taxes. But, through the holistic tax planning procedure, a Startup can conduct the taxation process with ease and avoid the complicated circumstances related to tax liability.

What is the importance of Tax Planning for a Startup?

Tax planning has numerous importance for a Startup. Among them, the notable beneficial characteristics are namely –

Choosing the Accurate form of Company Incorporation

As per the Companies Act, 2013 of the Indian Govt. there are a few types of company registrations available in India like Pvt. Ltd. entity, One Person Company (OPC), Limited Liability Partnership (LLP). The tax consultants can guide the startups in registering the business in the most comfortable category to get better tax benefits.

Maintaining the Cash-flow

When a startup is incorporated, the foremost criteria of the venture is getting the cash-flow moving efficiently. Here the tax planners can efficiently guide the startups through the bookkeeping and tax planning process.

Handling the Tax Liability

After calculating the year-long transactions, the registered startups are mandated to file the taxes to the authority within the due schedule. The tax planners can assist the business owners in computing the levied taxes and filing them.

Conducting investments

One more noteworthy importance of tax planning for the startup is attracting investments for the business. The tax planners are not only expertise in tax-related compliances, but they also analyze the business insights, financial stabilities and thus can pitch to the financiers to invest in the organization.

Resisting Legal Consequences

Every type of levied taxes in India like Income Tax Returns, TDS, are required to be filed before the deadline and a lot of legal complications can arise if the taxes are not filed properly. Here the tax planners can safeguard a budding startup by managing all the taxation barriers.

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