How to plan my tax liability?

Most of taxpayers wanted to reduce tax they pay to the government. Some people manage to do some adjustment to actual figure and pay lesser tax. But finally they have to pay huge tax with penalty. Making adjustment is risky and unlawful manner. How people reduce tax lawfully. It is one challenge taxpayers have to achieve.

Solution is tax planning. Tax planning is the process of organizing the tax affairs by which can minimize the incident of tax in leave of doing fraudulent, fictitious and illegal actions. You can not plan your past transactions. It is involve on future affairs what is to be done.

When planning your tax, you should have through knowledge about tax law, especially on tax concessions, exemptions and tax rates. Most people do not think about tax implication on investments and other day to day business activities. As a example as a VAT registered person when you purchase you should buy from VAT registered supplier, even though his price is bit higher than the supplier who does not give tax invoice. But most people bye without tax invoice at lesser price and pay huge tax (VAT) to the government.

Tax planning can be applied from start up to winding up of the business. Before doing any single change to the business you have to write to your tax consultant and get advice from him.

Few things you have to consider doing activities in your business

• Selecting of business activities which have tax concessions and exemptions
• Avoiding disallowable expenditure
• Keeping mind on qualifying payments
• Paying tax on time and get benefit of tax rebates
• Try to get maximum benefit of capital allowances
• Acquire the assets keeping mind on tax planning

Keep mind on tax planning and enjoy hassle free business.

If you have any question about tax planning contact me through thushkuma@gmail.com