Tax planning is the umbrella term for all strategies employed to minimize tax payments, regardless of the specific approach. It involves careful analysis of financial activities and structures to identify opportunities for reducing tax liability. This can include adjusting income, expenses, or investments in a tax-efficient manner. Tax planning requires a thorough understanding of tax laws and regulations, as well as a proactive approach to managing financial decisions. It is a crucial aspect of financial management and can have a significant impact on an individual or organization's overall tax burden.
