Tax Planning |
Tax Management |
(i) The Objective of Tax Planning is to minimize the tax liability |
The objective of Tax Management is to comply with the provisions of Income Tax Law and its allied rules. |
(ii) Tax Planning also includes Tax Management |
Tax Management deals with filing of Return in time, getting the accounts audited, deducting tax at source etc. |
(iii) Tax Planning relates to future. |
Tax Management relates to Past ,. Present, Future.
Past – Assessment Proceedings, Appeals, Revisions etc.
Present – Filing of Return, payment of advance tax etc.
Future – To take corrective action |
(iv) Tax Planning helps in minimizing Tax Liability in Short-Term and in Long Term. |
Tax Management helps in avoiding payment of interest, penalty, prosecution etc. |
(v) Tax Planning is optional. |
Tax Management is essential for every assessee. |