565.6 Tax planning v.Tax management-Tax management involves the procedures of compliance with the statutory provisions of law.the following are the broad areas of distinction between tax planning and tax management.
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see more| Tax planning | Tax management |
|---|---|
| 1.The objective of tax planning is reduce the tax liability to the minimum | 1.The objective of tax management is to comply with the provision of law. |
| 2.Tax planning is futuristic in its approach. | 2.Tax management relates to past(i.e assessment proceedings, rectification, revision,appeals etc),present(filing of return of income on the basis of updated records) and future (corrective action). |
| 3.Tax planning is very wide in its coverage and includes tax management. | 3.Tax management has a limited scope,i.e,it deals with specific activities such as filing of returns of income on time, updating records from time to time,etc. |
| 4.The benefits arising from tax planning are sub-statical particularly in the long run | 4.As a result of effective tax management,penalty,penal interest, prosecution, etc.,can be avoid. |
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