Direct tax collections is one of
the easiest and safest ways of collecting revenues by the Government. In spite
of our greatest reluctance all of us are in the tax net and contribute a
sizeable portion of the revenue of the exchequer. The law provides for levying
of taxes at different stages and forms of income .On the contrary it provides
impetus for effective savings out of the income generated by us through which
we can reduce our tax liability. Such investments provide dual purpose for both
the assessee and for the Government. On the one hand it reduces tax liabilities
in our hand and on the other hand it provides sizeable funds in the hands of
the Government 
Our main aim in tax planning is
to pay minimum taxes by abiding with the legal statute and maximizing return on
our investments by investing on the correct instruments at the correct
time of our life.
I endeavor herein below in brief
some of the important aspects in this respect:  
Some people have a wrong notion
that tax planning is useful only once you reach an advanced stage of life or
are well settled in a business or profession. That is not true. In fact, the
best time to start tax planning is right from day one when you start having any
income in your name
. The sooner you enter the wonderland of tax planning,
the better it will be for you in the long run. The benefits of tax planning
adopted in the initial years of life will come in very handy when you are
planning your retirement. The longer the duration of your tax planning,
the better results it will yield to you in years to come
. Thus, the right
time to begin tax planning is when a person becomes a major. And, it should be
continued in right earnest, year after year. Here is how … 

Tax Planning upon Becoming a
your first lesson of tax planning when you attain the age of 18 
all the amounts you receive 
·       Small
cash presents you receive on various ceremonial occasions should be put into
the bank 
·      Separate
income tax files for each individual so that one’s income is not added with
that of other family members. 
Tax Planning Once You Start
maintain your withdrawals, banks deposits, etc. 
·       Save
as much as you can because being single you have fewer financial commitments
·   Open a
PPF account and put money in the account as much as you can. This investment is
tax free and also remains blocked for a minimum period of 15 years. 
luxurious spending as this is not the age for that. 
Go for
some insurance policy with long period of maturity. 
Tax Planning When You Get Married 
gifts to your spouse after marriage as the income arising from the same will be
clubbed with your income. Best planning would be to make a gift to your
prospective spouse just a few months before your marriage. 
your spouse is not a working woman, do not withdraw for household expenses from
her account. Utilize that fund for tax saving investments. 
some pension plan investment which will be beneficial when you retire. 
savings for a house of your own if you don’t have one 
yours is a joint family open a HUF account and maintain separate file for the
Tax Planning after a Decade of
Your Marriage
investments in the name of your children 
·     In
case of fund constraints take some small but long term insurance policies in
the children name for their education and marriage. 
·       Invest
the maturity value of your certain early age investments into long term risk
free investments. 
Tax Planning after the Marriage
of Your Children
·     Income
in the group is distributed amongst yourself your spouse and your son, daughter
in law 
your will and adopt tax planning relating to your will to secure tax saving to
the family members.
Tax Planning for Senior Citizens 
·  Open joint bank accounts and put all your maturity
value in the same.
·  Invest is safe instruments and in joint names. 

Intelligent tax planning calls
for changes in approach every few years. It is, therefore, recommended that you
must review your investment and tax planning perspective at least every decade
and reorient it depending on the facts and circumstances of the situation.
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