Tax Planning & Advisory in India – A Complete Guide

1 · Introduction to Tax Planning & Advisory

Tax Planning & Advisory is the systematic analysis and arrangement of a taxpayer’s financial affairs to maximize tax efficiency while remaining fully compliant with the Income Tax Act, 1961, Goods & Services Tax (GST) law, and allied regulations. Whether you are an individual, a start‑up, an SME, or a large corporation, a proactive tax strategy helps you legally minimize liabilities, improve cash flow, and support long‑term financial goals. Professional advisory services provide expert insights, ensure adherence to the latest laws, and protect you from penalties.

2 · Why Tax Planning Matters

• Optimise Cash Flow & Savings – Retain more of your hard‑earned money by availing all eligible deductions, exemptions, and rebates.

• Strategic Investment Decisions – Align tax benefits with your investment portfolio to grow wealth faster.

• Regulatory Compliance – Avoid interest, penalties, and litigation by meeting filing deadlines and disclosure norms.

• Business Competitiveness – Lower effective tax rates improve profitability and investor confidence.

3 · Benefits of Professional Tax Advisory

Benefit	How It Helps
Holistic Assessment	Comprehensive review of income, expenses, assets, and future plans
Risk Mitigation	Identify and rectify compliance gaps before audits
Tailored Strategies	Custom solutions based on your sector, size, and goals
Representation Support	Expert assistance during assessments, scrutiny, and appeals
Continuous Updates	Get alerts on law changes (BNS, BNSS, GST, etc.) and their impact

4 · Who Needs Tax Planning?

• Salaried Individuals & NRIs with income ➜ ₹5 lakh or more

• Freelancers & Professionals (doctors, lawyers, architects, influencers)

• MSMEs & Start‑ups seeking to optimise Section 80‑IAC, 115BAE, or PLI incentives

• Corporates & LLPs requiring domestic or cross‑border tax structuring

• HUFs & Family‑run Businesses planning succession and wealth transfers

5 · Key Tax Planning Strategies

For Individuals

1. Section 80C Basket – ELSS, PPF, PF, life‑insurance, home‑loan principal

2. Health & Insurance – Section 80D (medical insurance), 80DDB (critical illness)

3. Capital Gains – Indexation, Section 54/54EC reinvestment exemptions

4. New vs Old Regime Evaluation – Comparative computation for FY 2025‑26

5. NPS & Pension – Section 80CCD(1B) extra ₹50k deduction

For Businesses

1. Optimal Entity Structure – Evaluate LLP, Pvt Ltd, OPC, Trust

2. Special Tax Rates – Section 115BAA, 115BAB, 115BAC(6)

3. R&D & Startup Incentives – Section 35(2AB), 80‑IAC, patent box (115BBF)

4. GST Optimisation – Input Tax Credit (ITC) maximisation & refunds

5. Transfer Pricing & International Tax – BEPS, OECD guidelines, DTAA benefits

6 · Documentation Required

Individuals

• PAN, Aadhaar, last three ITRs

• Salary slips / Form 16 / Form 26AS & AIS

• Investment proofs (ELSS, LIC, PPF, etc.)

• Loan statements & capital‑gain reports

Businesses / Corporates

• Audited financials & trial balance

• GST returns (GSTR‑1/3B)

• Fixed‑asset register & depreciation schedule

• Agreements for inter‑company transactions, overseas remittances, royalty, etc.

7 · Our Tax Advisory Process (Step‑by‑Step)

1. Discovery Call (Day 1) – Understand goals, challenges, and timelines

2. Data Collection (Day 2‑5) – Secure document upload via encrypted portal

3. Preliminary Review (Day 6‑10) – Identify quick‑win savings & compliance gaps

4. Custom Strategy Roadmap (Day 11‑15) – Detailed computation & action plan

5. Implementation Support (Day 16‑30) – Execution of investments, restructuring, filings

6. Ongoing Monitoring (Quarterly) – Law change alerts, forecast tax liability, advance‑tax planning

8 · Compliance & Post‑Advisory Support

• Quarterly Advance Tax Calculator & Reminders

• Representation in Assessments, Appeals, ITAT

• Year‑end Tax Health Check & Audit Preparation

• Dedicated Relationship Manager for real‑time query resolution

9 · Common Mistakes to Avoid

• Ignoring Alternate Tax Regime Comparison

• Missing HRA vs Home‑Loan Deduction Optimisation

• Overlooking Small Interest Incomes (SB/FD)

• Failing to Reconcile GSTR‑3B with Books

• Late Investment Proof Submission

10 · Frequently Asked Questions (FAQs)

Q1 · Is professional tax planning worth the fee?
Absolutely. Average clients save 5× in tax compared to fees paid.

Q2 · Can I claim deductions under both old and new regimes?
You must choose one regime each year. We perform a dual computation to pick the most beneficial.

Q3 · What documents are needed for GST optimisation?
GSTR‑1/3B returns, purchase invoices, e‑way bills, and supplier reconciliation statements.

Q4 · How early should businesses start year‑end tax planning?
Ideally in Q2; early planning allows time for restructuring and investment adjustments.

Q5 · Do you assist with cross‑border taxation?
Yes. We advise on DTAA relief, PE risk assessment, and transfer pricing documentation.

Q6 · How secure is my data?
All documents are stored in AES‑256 encrypted servers with NDA & GDPR compliance.

 

Disclaimer: This content is for informational purposes only and does not constitute legal or financial advice. Always consult a qualified tax professional for personalised guidance.