1. What is meant by tax management? Describe the elements to be covered under it.
Answers
Meaning of Tax:----
A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. A failure to pay, or evasion of or resistance to taxation, is punishable by law.
Tax management:---
Every assessee liable to pay tax needs to manage his/her taxes. Tax management relates to management of finances for payment of tax, assessing the advance tax liability to pay tax in time. Tax management has nothing to do with planning to save tax it is just related with operational aspect of payment of tax i.e. while managing his taxes a person ensures that he/she is making timely payment of taxes without running out of the money and he is complying with all the provisions of the law.
Tax management means, the management of finances, for the purpose of paying tax.
~The objective of Tax Management is to comply with the provisions of Income Tax Law and its allied rules
~Tax Management deals with filing of Return in time, getting the accounts audited, deducting tax at source etc.
~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
~Tax Management helps in avoiding payment of interest, penalty, prosecution .
~Tax Management is essential for every assessee.
Elements of Tax Management
●Reduce adjusted gross income
●Increase the amount of tax deductions
●Appropriate use of tax credits
●Tax Planning for Retirement Plans
***********************Hope it Helped************************
Definition of tax management:
Tax is the main income source of the government which should be paid by all the all earning citizens of a country.
Now,the tax submission process is very complex nowadays,due to various rules and new laws. So, management of whole tax payment process in a convenient way is known as the tax management.
Elements of the tax management are :
1) Filing return.
2) Auditing.
3) Source deduction.
And many more.