A study on tax planning of salaried people in coimbatore city

Tax planning is much more than simply opting for the investment or financial route that offers the maximum tax breaks. It also does not entail making unnecessary expenditure or needless investment solely for reducing taxes. Good tax planning remains integrated and interlinked to a wider exercise that brings stability to financial goals. Apart from ensuring lower than normal tax liability, the exercise requires considering other factors such as liquidity of the investment, risk appetite and the returns from the investment after factoring in inflation. Tax planning of the salaried people insists that proper planning of the tax deductions to reduce their tax burden legally. This study is to analyze the number of people those who involve in tax planning and their investment pattern. The need for the study is to reduce the tax burden of the salaried people with the help of provisions given in the income tax rules. There are some people those who invest in order to avoid tax but without the proper knowledge of the legal provisions that has the deductions. So, this study is an exploratory research was the data is collected from the primary and secondary sources and also it analyses the way that an individual can exempt from tax liability.