Corporate Income Tax Planning And Management

Tax planning means reducing tax liability by taking advantage of the legitimate concessions and exemptions provided in tax laws. It involves the process of arranging business operation in such a way that it reduces the tax liability.

Tax management involves the compliance of law regularly and timely as well as arranging the affairs of business in such a manner it reduces the tax liability. Poor tax management can lead to imposition of interest, penalty, prosecution. Losses may not be carried forward and set off if the return of loss is not filed by due date. Tax management emphasis on compliance of legal formalities for minimization of taxes while tax planning emphasis on minimization of tax burden.