Difference between tax planning and tax management with chart comparision
Answers
DIFFERENCE BETWEEN TAX PLANNING & TAX MANAGEMENT
Tax Planning:---
(1) The Objective of Tax Planning is to minimize the tax liability.
(2) Tax Planning also includes Tax Management.
(3) Tax Planning relates to future.
(4) Tax Planning helps in minimizing Tax Liability in Short-Term and in Long Term.
(5) Tax Planning is optional.
Tax Management:---
(1) The objective of Tax Management is to comply with the provisions of Income Tax Law and its allied rules.
(2) Tax Management deals with filing of Return in time, getting the accounts audited, deducting tax at source etc.
(3) 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.
(4) Tax Management helps in avoiding payment of interest, penalty, prosecution etc.
(5) Tax Management is essential for every assessee.