"The avoidance of taxes is the only intellectual pursuit that
still carries any reward" - John Maynard Keynes. The above quote
clearly states that reducing tax liability is a rewarding act
and it can be done effectively through tax planning. The
ultimate goal of any individual is to reduce his tax liability
and it can be achieved through tax planning. Taxes are generally
defined as a codified system of laws that describes government
levies on economic transactions according to “income tax Act
1961”. Government requires funds, for various reasons like
development of nation, meeting contingencies etc and for that it
charges tax to common people. There are numerable taxes levied
on a common man according to the Indian tax law, which are all
divided basically in the two parts : 1. Direct tax 2. Indirect
tax Direct tax is the tax which is charged directly on the tax
payer. It is that tax which is deducted from one's salary.
Indirect tax is the tax which is not directly levied on the
income of the consumer. This is