Small Business Solutions

The government provides estate tax as a levy against the taxable estate of a deceased person. Taxable estate is gross estate that is reduced by some allowable deductions. The value of an asset is determined on the basis of “fair market value” or the amount that it would fetch if sold in the open market. Every benefactor needs to have a personal representative who will be choosing the date for valuation to ascertain the asset’s value.

It can either be the date when the benefactor dies or six months later. The date of alternative valuation is followed only if there is lower tax incidence. The estate’s liability for taxation starts with the death of the benefactor and it is paid out of the estate before the property is distributed to the beneficiaries. Unless there is an extension the estate tax needs to be paid within nine months from the day the benefactor dies.

Estate tax planning is essential if you want to preserve your wealth for the coming generations. In order to start planning, you need to know the potential estate tax liability. According to the law that was enacted in the year 2001, whatever you own will be subject to the federal estate tax when you die, until 2010. There will be no federal taxation on the estate till 2010. This law will expire by the end of 2010.

No financial plan can be considered complete without estate planning. It is the best method of preserving the assets you have for your future generations. Many people think of estate planning as legal wills. They need to know that it is not a will but a series of legal steps through which they can allow beneficiaries to avoid the probate and minimize the incurred taxes. Estate planning helps you get a direct control on how you will like your asset to be treated when you die.

Till the year 2005 there was no estate tax levied on the first 1.5 million dollars of the net estate, but there will be an increase in the basic exemption level in 2009 to 3.5 million dollars. Although this tax will be removed in 2010, it will be reinstated to an exemption of 1 million dollars in 2011. There are many ways through which you can bring about a reduction in estate tax. One technique is to gift the asset during your lifetime. Since 2006, the federal tax law permits every individual to gift approximately 12000 dollars every year to as many people as possible without incurring gift tax.

Another option would be to give such gifts every month when alive instead of giving a lump sump after death so that the taxable estate can be reduced. Stocks, business or a percentage of ownership in real estate can also be given as a gift till it is below the 12000 dollars amount. There is no estate or gift tax applicable if you are transferring assets to your spouse in your lifetime, irrespective of the amount. But the surviving spouse should marry again and transfer the property to the new spouse in order to be able to enjoy the unlimited marital deductions.



By: Kris Koonar

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It is essential to get a hold on your taxation status immediately after moving abroad, especially if you are planning to settle there for a prolonged period. In fact, the taxation status of an individual can often dictate the amount of tax he/ she will pay. This may even help you to gain capitals or income taxation breaks. On the other hand, with an improper taxation status you can even come across double taxation issues. In fact, such matters can also raise issues relating to the residence status of an individual.

Thereby, it is important that you understand the tax related laws and rules of your home country as well as of the new country, where you are planning to settle. In addition, you will need to focus more towards international tax planning.

There are a number of professional groups who offer these types of services. In general, these types of tax professionals fall into 4 categories:

1. Local Accountants

You will need to appoint a local accountant in your home country who will help you to understand the various perspective of international taxation. In fact, you will also need to appoint an accountant in your new country of residence, as it is unlikely that a local accountant in your home country will have in depth knowledge about the tax related laws, rules and breaks of another country. Thereby, it is better to employ two professionals in order to ensure that all your potential liabilities will be well covered in both the countries.

2. Professional International Tax Planners

These professional tax planners can help you to build a proper taxation status by combining their knowledge of international accountancy and financial planning. In addition, they will help you to understand the advantages and disadvantages of your present taxation status. Moreover, the international tax planners help to cover all your taxation liability as well as to get the offshore advantages that you are entitled to. They will even formulate a unique legal plan for you so as to lower your total taxation liability.

3. International Accountants

International accountants can also help in your international taxation planning. In fact, they have too a good understanding about international tax related rules and breaks. However, appointing an international accountant will be of no use if your prime concern is about offshore banking advantage and investment. They can actually advise you on the residency related rules and laws.

4. International Financial Advisers

The international financial advisers can help you to understand the offshore world and can also advice you how to position your financial assets in your new country of residence. Moreover, they can help you to limit or negate your overall taxation liability.



By: Alice Shown

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You have been hearing a lot of ideas on how to protect your investments and finances whether from the media or from other people and some from books. They tell you to save up for you to have a good retirement. But one thing that they often miss to discuss is tax planning. The money that you are going to have throughout the year depends on your taxes. For example you set aside filling out the forms to file your taxes and then the next day your fill out the forms in a rush then it results to a large amount of money that you have to pay each year. The way you file your taxes also affects the way you save money. This means that you might be paying a lot more than you are supposed to. But if you have a good tax planning then there is a big chance that you can avoid such problems. Planning may consume a lot of your time and it may be tedious but this will definitely benefit you in the long run. As long as you plan every decision you are going to make then your life will be a lot easier. This also applies to people who are requesting for tax refund. The advantage of this is that you can get more money than the usual. A good tax planning can provide you a great monetary life.

You should practice a good tax planning all year round not just the time you are going to file your taxes. One good practice is to save receipts that may contribute on tax deductions. If know you do not practice such this may affect the way you are going to feel in the future. It is better to put some effort now than paying a large amount of money in the future no one will benefit from this but you. Another way to practice a good tax planning is to equip your self with expense tracking software. This software will help you keep track of your expenses while you are confident that you are prepared when are going to be audited just in case. Because there are some cases that regular people are audited even if there are no problems with there papers. Every year, the IRS conducts a random audit that is why any one can be audited so make sure that you are prepared when the time comes. So tax planning all through out the year will be a great advantage on your part because you do not have to worry about anything. You can show all the information that the auditor is going to need to prove that your papers are legal.



By: Abhishek Agarwal

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accounting

If you are a small business owner looking for cost cutting ideas here are ten tax planning ideas that may result in substantial tax savings.  The following article highlights planning areas often missed by business owners.  You should consult a qualified tax advisor to determine if any of these areas are appropriate for you and your business.

S Corporation:  Set up an S Corporation to avoid self-employment tax on profits. If you conduct business as a sole proprietor, a partnership, or a limited liability company the first $106,800 of 2009 profits are subject to a self-employment tax rate of 15.3%. The profits in excess of $106,800 are subject to a Medicare tax rate of 2.9%. These self-employment tax rates are in addition to paying income tax on the profits. An S Corporation is not subject to self-employment tax on the profits earned. But you must take “reasonable” compensation as salary subject to F.I.C.A. Bad Debt Expense: A reserve for bad debts is not deductible, but you can write off accounts receivable in the year in which they become uncollectible.  Be sure to take advantage of writing off all those uncollected accounts at year end.

If you used a collection agency, you can deduct a portion of the debt that will go to the collection agency as a fee (around 25%).  You can write off that amount at the time you turn over the receivable to the agency. Medical Expense:  For 2009, eligible self-employed individuals can deduct from gross income 100% of the amounts paid for health insurance coverage. The deduction is limited to net earned income from the business, less the deduction for 50% of the self-employment tax. Also, you cannot take the deduction for any month you were qualified to participate in an employer sponsored health plan.

If you conduct business as a corporation, set up a corporate medical reimbursement plan. Medical costs are generally personal expenses deductible only to the extent that they exceed 7.5% of your Adjusted Gross Income (AGI). However, medical reimbursement plans set up by C Corporations let you deduct all the medical costs you incur for yourself, your spouse, and dependents. These plans must cover all eligible employees. Equipment Expense:  For 2009, Section 179 of the Tax Code lets companies deduct up to $133,000 of new equipment, subject to certain limits. (This limit is reduced by the amount by which the cost of section 179 property placed in service in the tax year exceeds $530,000.) Passenger vehicles are excluded from the expensing election. A passenger vehicle is defined as having a loaded gross vehicle weight of less than 6,000 pounds.

The tax code also allows an accelerated method to depreciate the remaining value of that equipment – it’s faster than the straight-line method of depreciation. Home Office Expense:  Write off home-office expenses.  You can take this deduction even if you use the space for administrative purposes, as long as there is no where else you can work.  When you use one room in your six room home as an office, you can deduct one-sixth of your costs for utilities, security, homeowner’s insurance, etc. as well as all costs for the room such as carpeting.  Although you can also claim the depreciation on your home used for home office, you should consult a qualified tax advisor prior to doing so to understand the impact it will have on the exclusion of gain when you sell your residence. Travel Expense:  Deduct business trips by putting your spouse on the payroll. When spouses are on the payroll, even at low salaries, cost of business trips that include the spouse can be fully deducted. You should also be aware that putting your spouse on the payroll in 2009 will also double the amount of Social Security tax owed up to the first $106,800 of income. Hiring Children in the Family Business:  Put your children on the company payroll. When you employ your children in the business, for 2009 you can pay them up to $5,350 in salary free from Federal tax. The “kiddie” tax doesn’t apply to wages, so children under age 18 get this tax break, too. Have your children put $4,000 into a Roth IRA, where it will compound tax-free over time. When the money is left in the account until they turn 59 ½, they will never have to pay out any tax or penalties on that money or its earnings.

If your business is not incorporated, and the children are under age 18, neither you, as employer, nor your children will owe Social Security or Medicare tax on their wages. Retirement Planning:  Put more money away in your company retirement plan for yourself than for your employees.  Business owners who are more than 20 years older that other company employees can set up a defined-benefit pension plan instead of a defined-contribution plan.  Because they are funding a specific benefit (not putting away a percentage of salary) and have fewer years to do so, owners can contribute more to the plan for themselves than their employees. Claiming Business Losses:  Make the most of business losses. If your company has a net operating loss in 2009, it can be carried back two years or carried forward up to 20 years to offset future profits. To get a refund, file an application on Form 1139 for corporations and Form 1045 for sole proprietorships. Most refunds are sent out by the IRS within two months. Education:  Set up a company tuition-reimbursement plan to pay a child’s school cost.  Businesses can set up plans that pay up to $5,250 in tuition per employee annually.  Business owners’ children must work for the company, be older than age 21, own no company stock and cannot be claimed as a dependent on the owners’ tax returns.

By: Alan L. Olsen

About the Author:

financials

“In this world, nothing is certain but death and taxes”, wrote Benjamin Fanklin in 1789. If we taking care of our health and be safety conscious, we may be able to outwit death until we are very old. But for taxes, you can’t escape from paying tax since you start your first job, unless you are very poor. Hence, as a taxpayer, you need to have a good tax planning so that you can legally minimize your tax consequences and pay only what is due to Uncle Sam, not more!

Understanding Your Tax Bracket

The more money you make, the more you pay in taxes. Your tax brackets increase as your income increase. In additional, you loss some of you tax advantages, such as exemptions of dependents, that are phased out as your income increase.

Beside the federal government tax which is unable to be escaped for all taxpayers, if you live in state that also taxes you income, you need to pay for state government tax if applicable. There are seven tax-free states in United States: Alaska, Florida, Nevada, South Dakota, Washington and Wyoming. Hence, you should aware and plan in the additional tax rate if you are living at taxable state. For example if you are in the 25% tax bracket for federal taxes and you live in state that has a 5% income tax, you total tax rate should be 30%. Thus, for every $1,000 you earn, Uncle Sam has his share of $300 living you $700 to spend.

The dollar amount at which tax brackets occur change every year because of factoring in the inflation which vary from year to year. Hence, you should get the most current tax schedule and use it in your tax planning.

How To Legally Pay Less Tax?

There are many tax exemption and deductions benefits offer to taxpayers. You need to know the benefits that apply to you so that you can get some “discount” from Uncle Sam and pay less legally. The deductions and exemptions if you are eligible will help you to reduce your taxable income. Hence, you should get a good tax planning guide which will help you to understand what are the tax’s benefits apply to you.

While a tax deduction is something you subtract from your gross income to reduce your taxable income, tax credit is another tax benefits that you can utilize to minimize you payable tax. Tax credits are actually worth more to you than a deduction. It reduces the amount of taxes you owe, dollar for dollar. Thus, you better get to know the tax credits that can apply to you. Among the tax credits for you to calculate in, if applicable are:

1. Dependent & Childcare Credit

The dependent and childcare credit is available if you work outside your home or are full-time student. The expenses must be for dependents under age 13 or any person who is mentally incapable of care for themselves and they must be qualified as your dependent.

2. Child Tax Credit

If you enjoy this benefit if you have children being supported by if they are under age 17.

3. Education Credits

There are two types of education credits, the Hope Scholarship credit and Lifetime Learning credit. The Hope Scholarship credit is available for the first two years of college of you kids. The Lifetime Learning credit is not just for kids, you can utilize this benefit if you need to take courses to improve your job skills.

4. Adoption Credit

The adoption credit is based on the cost of adoption a child. These costs include reasonable adoption fees, court costs, attorney fees, and legal fees.

5. Earned-Income Credit

The earned-income credit is the only credit given as a payment. The credit is applicable for low-income families, usually with children.

In Summary

You can not escape from paying tax; this is the price of living in a civilized nation. But you can learn more in tax planning so that you can pay less, legally. Uncle Sam will let you living in peace if you just pay what is due to him and you no need to pay more to make him happy.



By: Cornie Herring

About the Author:

business mediation

Tax Planning 2008: Welcome to My Show!         

Fighting the Alternative Minimum Tax

Many more of you find yourselves in this predicament. What can you do? Who can you call? Well, those dashingly handsome financial super heroes are here to serve. If you are using un-reimbursed employee business expenses on your itemized deduction schedule, get reimbursed. These expenses will cause the alternative minimum tax (amt) to rear its evil head. If you use your car for business, get your boss to reimburse you for these expenses as opposed to getting a bonus or commission payment. This will keep income out of your W-2 and helps to circumvent amt. This is good for employees and employers as the reimbursement of expenses follows the “accountable plan rules” issued by Internal Revenue. Following this simple technique will save everyone money. List your employee business expenses, including mileage at 50.5 cent for the first half of 2008, and 58.5 cents for the second half, and get your employee to reimburse in lieu of a paycheck. You get the money tax free, and your employer avoids payroll tax. Keep in mind that your employer might not want to reimburse for meals and entertainment as they are a limited to being 50% deductible for income tax purposes.

Real estate taxes and state income tax deducted on your “schedule A” will also help to create an amt situation. Consider making any state estimated payments in January as opposed to making them in December. In addition, you might also be able to pay part of your real estate taxes in January.

If you are typically deep in the alternative minimum tax, you might just have to embrace the concept. The marginal brackets are 26% and 28% respectively for amt which means you are not deep into the 35% regular bracket. In fact, it might make sense to accelerate income into 2008 to maximize the amt brackets. Remember, there’s a new administration in town in 2009 and all bets are off.

To Roth, Or Not To Roth

With the stock market down as much as it is, there might be opportunity for converting a traditional IRA to a Roth. This can only be done if adjusted gross income is $100,000 or less (not including the conversion of the IRA). Converting a traditional IRA to a Roth is a taxable event in the year of conversion. Because many IRA balances are down in value, this might be the time to make the conversion and minimize exposure to income tax. The idea in doing this is to pay tax now (or not at all if your income from other sources is significantly reduced) to avoid paying it at retirement age. This could be an important estate planning tool. Think about this carefully.

Buying a Home

If you are a first time homebuyer, it might make sense to arrange settlement to occur in 2009. Why is this you ask? There might be points (remember, seller paid points are also deductible by the buyer) or real estate taxes paid at settlement that will offer little or no tax benefit in 2008.This might be due to the fact that the new homeowner or homeowners will not have enough deductions to itemize deductions on federal form “Schedule A”. For taxpayers with adjusted gross income of $100,000 or less, mortgage insurance is treated as qualified mortgage interest for deduction purposes. This deduction phases out at a rate of 10% for each increment of $1,000 over $100,000.

Other Things to Remember

The section 179 limit for 2008 is at a one time level of $250,000. If you are starting a new business, this means that a deduction of $250,000 can be taken for depreciation in year one providing there is income from business sources. This business source income includes W-2 forms from both husband and wife.

There is also bonus depreciation for 2008 for 50% of qualified property. If the business is already in a loss position and ineligible for the section 179 deduction, this 50% could expand a net operating loss that would be eligible for carry back purposes.

It’s not too late to form a retirement for your business allowing as much as $46,000 to be contributed and deducted ($51,000 if one has reached the age of 50 or more). A qualified SEP plan can be funded by the due date of the return which is April 15th plus extensions.

Please, for goodness sakes do what the hell I tell you. You are free to do whatever you wish, but my way is better.

Ron Piner, CPA

Host of “Better Business”

Saturday mornings at 10ET

ON WBIS AM 1190

www.wbis1190.com

taxguy9@hotmail.com



By: Ron Piner, CPA

About the Author:

small business articles

 

If you have ever endured a dose of ‘Sour Surprises’ from Uncle Sam on April 15, then you already know that smart, strategic tax planning throughout the year is the only way to keep tax headaches away. One small mistake like a missed payment, illegal deduction of expenses or incomplete records is enough to attract a host of penalties; and you can be sure that no tax auditor will take kindly to lame pleas of ignorance.

 

Income tax planning basically refers to examining how to conduct your business in such a way as to eliminate or reduce taxes. As a business owner or individual, you have several methods in which to conduct business; effective tax planning focuses on the method that facilitates the lowest tax liability, legally.

 

There are many tax planning strategies at your disposal. Whichever you use, you will basically be targeting any or all of these results:

Ø Reducing your taxable income

Ø Claiming tax credits, if any

Ø Managing and controlling the time in which to pay tax

Ø Avoiding costly tax planning mistakes

 

There are two ways in which you can manage your financial planning: do it yourself or employ the services of an accountant or a professional adviser.

 

Doing your own tax planning is one of the best ways to learn about tax planning. However, keeping abreast of the latest rules and amendments in income tax can be quite daunting for the average individual. Amendments, rules and explanations run up to approximately 42,000 pages in standard publications, making the tax code in the US particularly complicated. For most people, reading up on tax literature is probably as painful as a bug in the ear. Which is why most companies and individuals turn to specialist tax planners.

 

Specialist tax planning companies assist companies and individuals examine the cornucopia of tax issues facing them. They mitigate risks and advise companies and individuals with high net worth on ways to reduce the amount they pay as taxes every year. They recommend appropriate solutions to knotty problems and work to increase the value of a company’s assets.

 

Whether you employ a personal accountant or use the services of a tax planning firm, you still need to have some basic knowledge of income tax planning. For example, you need to know what kind of records to save throughout the year, how to prepare your tax returns, how to substantiate the information you have provided in your forms, so on and so forth. This you can gain through practice and of course, in consultation with your tax planning service provider.

 

It is important to understand that while you cannot do anything to literally lower your tax rate, you can take certain actions that will reduce the tax figure you attract. Spotting that course of action and following it up will not just push up your bottom line, it will also help you cruise through mid April blues with a smile!

 

 

At Sovereign Group, our main business has been the setting up and management of onshore and offshore companies and trusts to assist with income tax planning – and asset protection including asset management services & protection, capital fund raising, specialized tax advice, credit cards and others.

 



By: adam.effiel

About the Author:

business mediation

ed to add an entity to your tax structure?

This is such an important question for mid-year planning because knowing the right time to add an entity to your tax strategy can often save as much as $10,000 per year in taxes!

What entity should you consider adding to your tax structure?

Many of you want to know what entity you should consider adding to your tax structure. There are 2 levels of tax planning to consider in answering this question.

** Level #1 **

This level is for those business owners or investors who are either just starting their business or investment or are in the “ramp-up” phase of their business or investment. The ramp-up phase may mean you are a few months in to your new business or investment, or perhaps even a few years depending on the type of business or investment. The ramp-up phase means your business or investment has not yet produced a profit. Now, without profit, taxes are likely minimal or even non-existent, which is why the focus of this level is building a strong foundation for your tax structure so once there is profit, your tax structure is already in place to immediately minimize your taxes.

I often get asked the question “When should I form my entity for my business (or investment)?”

Many of the people I talk to are unsure if they should get their business up and going first, and then worry about the entity, or if they should have the entity in place even before starting the business or investment.

The answer to this depends somewhat on the type of business or investment, however, if I have to give an answer, I recommend setting up the entity first. This is because the right entity can grow and change with you as your business or investment grows and changes. Plus, outside of the tax benefits, many entities offer some level of asset protection which most people rank as an important planning factor.

So for those of you in Level #1, the entities to consider adding to your tax structure are:

Limited Liability Company (LLC). LLCs are the most flexible entity for tax purposes. LLCs can start off being taxed one way and then elect to be taxed differently. This means your LLC can adjust to the tax planning needs of your business or investment because your LLC can be taxed as a sole proprietorship, partnership, S corporation or C corporation. This flexibility is key in building a strong foundation for your tax structure and to minimize future taxes. S Corporation or Partnership. If your LLC will be formed in a state that assesses a separate tax on LLCs, then you should consider adding an S corporation or partnership instead of an LLC.

** Level #2 **

Level #2 is for those who already have a strong foundation in place for their tax strategy, and whose business or investment will soon be exiting the ramp-up phase or has already exited the ramp-up phase and is producing income. At Level #2, the focus is minimizing the tax liability created by your business or investment.

Consider a C Corporation if you are in the Level 2 planning group

One way to eliminate – not just reduce taxes – is to shift income to a taxpayer in a lower tax bracket. A C Corporation has initial tax brackets of 15% and 25%. If you are in an individual tax bracket of 25% or higher, then there could be an opportunity to reduce your taxes by shifting some of your income to a C Corporation.

For example, if you are in a 35% tax bracket individually and are able to shift $50,000 of income to a C Corporation, then your income tax is reduced by $10,000! And this can be an annual savings of $10,000!

BUT…

I know from experience that any time I suggest a C Corporation in a tax strategy, people panic! They think of all the bad things they’ve heard about C Corporations:

But what about the double tax?

But what about the personal service corporation tax?

But what about getting money out?

But what about the accumulated earnings tax?

What most people don’t know (including many CPAs) is how to legally avoid these tax traps…BUT I do! In fact, some of them are not even tax traps at all – I have found ways to use some of these so-called traps to save taxes!



By: Tom Wheelwright

About the Author:

accounting

What is Reverse Tax Planning? Normally this focuses on reducing taxable income and taxes. Reverse tax planning does the opposite and may actually increase taxes. Why is this a good thing?

If someone is usually in a high tax bracket and experiences an off year in which taxable income is low, then it means there is opportunity to use lower tax brackets. Reverse tax planning focuses on using the lower tax brackets so they don’t go to waste!

I have heard from many of you looking for more reverse tax planning tips, because you will have lower taxable income. So, here they are!

- 5 Reverse Tax Planning Tips -

#1 – Consider Your Tax Elections. Usually the goal in tax planning is to take advantage of all tax elections that give you more deductions sooner. With reverse tax planning, you may want to pass on some of these elections. For example, Section 179 can provide a huge tax write-off. In a year with low taxable income, a huge write-off provides less in tax savings than if the deduction is taken when taxable income and marginal tax rates are high.

#2 – Move Deductions to Next Year. Before you write that next check that is a tax write-off, ask yourself if that expense can be deferred to next year without any consequences? If it can, then hold off on writing that check until the next year. This works if you are a cash basis taxpayer. If you are an accrual basis taxpayer, as some businesses are, then hold off on incurring expenses until next year.

#3 – Move Income to This Year. Call those customers who owe you money! If you are a cash basis taxpayer, collecting accounts receivable before the end of the year can be an effective way to increase your taxable income. If you are an accrual basis taxpayer, then you need to close some sales before the end of the year to increase your income. If this income goes into next year, it could mean your lower tax brackets this year go unused and the income ends up in a higher tax bracket next year.

#4 – Take Advantage of Income Limitations. Many taxpayers lose tax benefits because many tax benefits phase out when income reaches a certain amount. So in a year when your income is lower than usual, you may be able to take advantage of some of these tax benefits. These tax benefits include education credits, tuition deductions, rental real estate losses, medical expenses, miscellaneous itemized deductions, and many, many more. This may be the year to make sure you qualify for these tax benefits!

#5 – Plan Your Taxes for Next Year. The end of the year is a great time to start planning your tax strategy for next year. This is especially true with reverse tax planning since income and deductions are being moved in and out of the next year.



By: Tom Wheelwright

About the Author:

financial analysis

Just as rules are important for good living so also there are some golden rules of tax planning. The five simple yet effective golden rules of tax planning are:

1.Spread the taxable income among various members in your family;

2.Take full advantage of tax exemptions available under the law;

3.Take full advantage of permissible tax deductions and rebates available on stipulated tax-saving investments;

4.Make optimum use of tax-exempted incomes; and

5.Simple tax planning is smart tax planning

Planning your income may or may not be a difficult question to answer but Tax Planning has been something which many people have found out to be very difficult. We rush to our CA’s at the end of our financial yeas so that he can guide us as to where can we invest so that we can save maximum amount of tax

There are many parameters that we need to take into consideration while planning for our tax as the benefit is going to be received by the government. We will not advise you to skip and not pay your tax because at the end of the whole thing is that who will be the sufferer amongst this it is we and this is a crime to not to pay your tax. But a proper planning is what is required. We have to compare the advantages of several tax saving schemes and depending upon your age, social liabilities, tax slabs and personal preferences, decide upon a right mix of investments, which shall reduce your tax liability to zero or the minimum possible.

Every citizen has a fundamental right to avail all the tax incentives provided by the Government. Therefore, through prudent tax planning not only income-tax liability is reduced but also a better future is ensured due to compulsory savings in highly safe Government schemes. We sincerely advise all our readers and clients to plan their investments in such a way, that the post-tax yield is the highest possible keeping in view the basic parameters of safety and liquidity.

For more information on how to make your tax planning then do visit www.franklintempletonindia.com



By: Peter Frank

About the Author:

financial analysis