What are the finance areas of tax planning?

Sheltered or partially sheltered income streams. Long term capital gains. Tax deferred vehicles. Investments that offer deductions or tax advantaged income.

What are the areas of tax planning?

Areas of Tax Planning

  • Reducing Taxable Income . – one can use government schemes and programs to reduce his taxable income, it will directly reduce his tax liability. …
  • Deduction planning. – there are many deductions provided by a taxation law. …
  • Investment in tax planning. …
  • Year-end planning strategies.

What are the major financial planning areas?

They are saving, investing, financial protection, tax planning, retirement planning, but in no particular order.

  • Here are the 5 aspects of a complete financial picture:
  • And now, we will discuss each of the 5 aspects in further detail:
  • There are 4 kinds of insurance we all need.

What are the five areas of financial planning?

5 Areas of Financial Planning

  • Comprehensive Wealth Management.
  • Tax Planning Strategies.
  • Retirement Planning.
  • Investment Planning.
  • Risk Management and Insurance Services.
  • Estate Planning.

What are the 6 areas of financial planning?

Six Areas of Financial Planning

  • Cash reserve levels.
  • Cash reserve strategies.
  • Debt management.
  • Cash flow management.
  • Net worth.
  • Discretionary income.
  • Expected large inflow/outflow.
  • Lines of credit.
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What are the 5 D’s of tax planning?

The Five Pillars of Tax Planning are these: Deducting, deferring, dividing, disguising and dodging to save tax. A couple of these sound illegal – but they’re not.

Is tax planning illegal?

As such, aggressive tax planning is not illegal and does not amount to tax avoidance. It is rather a term that has been associated with the extent to which MNEs make use of the ambiguities in competing tax systems to reduce their tax liabilities.

What are the four areas of financial planning?

A sound financial plan is based around four major elements, known as the four pillars: cash flow, risk, debt, and asset management.

What are the steps in personal financial planning?

The financial planning process is a logical, six-step procedure:

  1. (1) determining your current financial situation.
  2. (2) developing financial goals.
  3. (3) identifying alternative courses of action.
  4. (4) evaluating alternatives.
  5. (5) creating and implementing a financial action plan, and.
  6. (6) reevaluating and revising the plan.

Why should I study financial planning?

A financial plan acts as a guide as you go through life’s journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals. … This is where financial planning becomes essential.

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