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Tax planning is a crucial step for any individual or business entity. Tax planning starts with understanding the direct and indirect taxes applicable and the incentives or deduction available to the form of business. This helps in availing of exemptions applicable, deductions available and the compliances that are to be made in time to reduce the penalties and interest paid to the respective departments. The resolution of Tax planning is to create a strategy for present, past and future financial transactions in the best tax-efficient manner. Tax planning is a crucial step to relax the tax liabilities. Each and every individual and business entity whose remuneration is taxable should go for tax planning to properly plan and showcase their expenditures in a proper manner abiding all legalities to avail the maximum tax benefits.