Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency.
Through tax planning, all elements of the financial plan work together in the most tax-efficient manner possible.

---

Types of Tax Planning:

• A:) Purposive tax planning: Planning taxes with a particular objective in mind.
• B:) Permissive tax planning: Tax planning that is under the framework of law.
• C:) Long range and Short range tax planning: Planning done at the start and end of a fiscal year respectively.

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.