Tax planning is an action undertaken by the taxpayers to lower the amount of tax owed to them by maximizing the use of all available allowances, deductions, exclusions, and other legal provisions. It is the examination of a financial position via the lens of taxation. Tax planning aims to ensure that taxes are as efficient as possible. It also makes sure that all aspects of the Financial plan work together to achieve maximum tax efficiency. For fiscal effectiveness, tax planning is essential.
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