What are the elements of Tax Planning?

[richardm1964]

Tax planning is very essential not only for individuals but also for companies, paying huge tax to the exchequer. It has been transformed into an attractive profession across the globe and the demands of Tax Planners are in rising trend.But, what are the elements of Tax Planning?

[mneilson]

Tax planning maybe defined as “ Making systematic plan to pay taxes to local, state, and federal tax agencies, in an effective and optimal manner. As tax laws are subject to change in every financial year, Tax Planning needs to be done every year which is continuous process. Some of the elements of tax planning are.
1-Understanding the current tax laws and its implications.
2-Understanding what type of expenses are tax deductible under current regulations?
3-To know, what type of investments are exempted from the Tax for the same financial year.
4-Not to hide or evade Taxes.