“A Study on Tax Savings Strategy Adopted by Salaried Assesses in Mumbai City”

Abstract

Tax planning refers to the process of organizing one’s finances in a way that maximizes tax advantages while ensuring compliance with the law and minimizing tax liabilities. This process is guided by legislation that outlines various exclusions, deductions, refunds, and relief measures aimed at achieving social and economic objectives. These measures not only help reduce the financial burden on individuals but also encourage savings and investments, which in turn contribute to economic development. For salaried individuals, tax-saving opportunities are often linked to their investing habits, which are shaped by their income levels and financial goals. By making informed and prudent investment choices, individuals can take advantage of government-sponsored tax-saving measures to reduce their overall tax liabilities. However, many salaried individuals find tax planning challenging due to complexities in understanding tax laws and investment options. The study also explores various characteristics that influence their investment behaviour, which may further affect their ability to utilize available tax-saving strategies effectively.