Behavioral Aspects of Tax Planning In India

Abstract

Tax awareness is the cornerstone of any assessee's tax preparation. Being aware of the current tax laws and how they affect the total amount of income taxes due to the government is known as tax awareness. The degree of knowledge a person has about the provisions of the income tax laws, such as exemptions, allowances, deductions from 80C to 80U, changes in income tax rates, rebates, education cess, nonpayment penalty, TDS, knowledge of loopholes, advance payment tax, tax saving strategies, penalty, and interest charged, is known as tax awareness. All assessees must pay taxes if their combined income exceeds a legally defined level. Effective tax preparation is so essential. Understanding the various tax savings options and the current tax rules is essential for effective tax planning