Just as rules are important for good living so also there are some golden rules of tax planning. The five simple yet effective golden rules of tax planning are:
1. Spread the taxable income among various members in your family;
2. Take full advantage of tax exemptions available under the law;
3. Take full advantage of permissible tax deductions and rebates available on stipulated tax-saving investments;
4. Make optimum use of tax-exempted incomes; and
5. Simple tax planning is smart tax planning.