Corporate Tax Planning in Bangalore

Corporate Tax Planning in Bangalore – Do you think cutting tax liabilities has to be illegal? Well, not if you strategically plan your finances to minimize the tax dedications while complying with tax regulations and laws. For big organizations and corporate firms, tax consultants often implement corporate tax planning to ensure optimum financial health and sustainability of the business. If you are looking for reliable Corporate Tax Planning in Bangalore, Prakasha & Co. is a reliable choice. We have a highly professional team of tax consultants who are well-versed in designing a specific corporate plan for different businesses. 

The blog takes a deep dive into Corporate Tax Planning in Bangalore and what are the strategies used by the tax consultants at Prakasha & Co. to comply with the tax regulations and other laws. 

What is Corporate Tax Planning and why is it Important? 

Corporate tax planning is a meticulous process of implementing strategies to minimize a company’s tax liabilities. In this process, experienced tax consultants work by analyzing a company’s financial situation, operations, and structures. It also requires identifying opportunities for saving tax by manipulating the deductions, incentives offered by the government, exemptions, and credits. The common ways used by tax consultants to save tax for the corporate firms are listed below:

• Utilizing the deductions and credits. 
• Optimizing debt-to-equity ratios.
• Ensuring compliance with OECD guidelines to avoid penalties.
• Use tax-loss carryforwards or carrybacks to offset taxable profits. 
• Identifying and applying for tax incentives

These changes are made as per the Income Tax Act of 1961, which includes tax laws applicable to corporate income. The Income Tax Act also includes provisions for tax credits and exemptions to help with the tax burdens. The tax consultants should have a thorough understanding of the Income Tax Act and its various provisions for tax deductions. 

A Wide Array of Strategies Used in Corporate Planning 

The experienced tax consultants use a systematic approach to minimizing tax liabilities while ensuring compliance with the tax laws. These corporate tax planning strategies include the use of exemptions, deductions, credits, and incentives offered under tax regulations to legally reduce the amount of tax a business or individual owes. These tax planning strategies are used as per the nature of the taxpayer, financial objectives, risk appetite, and income and expense structure. Learn more about these planning strategies, briefed below:

Transfer Pricing 

The tax strategy is especially used for multinational corporations to allocate profits across countries with favorable tax rates. The transfer pricing includes pricing goods, services, or intellectual property between related entities. The tax consultants also ensure compliance with OECD guidelines to avoid penalties. 

Tax Deduction Optimization

The tax deduction optimization includes utilizing the deductions, credits, and other eligible business expenses. Many tax consultants also advise advancing expenses such as prepaid rent or bills to the current financial year to lower taxable income. 

Capital Structure Management

The tax consultants can also utilize the fact that the interest paid on debt is tax-deductible, whereas dividend payments to equity holders are not. This way they can optimize debt-to-equity ratios to benefit from interest deductions. 

Loss Utilization

This strategy includes the use of tax-loss carryforwards or carrybacks to offset taxable profits in future or past financial years. It also includes strategic utilization of Net Operating Losses (NOLs) to help corporations reduce taxable income. 

Use of Holding Companies

The big corporate firms can also establish holding companies in the areas with lower corporate taxes. These companies can reduce the group’s overall tax liability and manage dividends, intellectual property, and royalties. 

Explore Different Types of Corporate Tax Planning 

There is a wide range of tax plans in corporations that help businesses manage tax liabilities efficiently, improve cash flow, and achieve long-term financial goals. These corporate tax plans are applicable in different financial scenarios. Go through the table below to learn more about the corporate tax planning methods used by the tax consultants. 

Role of Prakasha & Co. in Corporate Tax Planning in Bangalore

Prakasha & Co. is a team of qualified, professional tax consultants offering comprehensive corporate tax planning services in Bangalore. They have a deep understanding of tax laws and regulations to offer expert advice on tax planning strategies. Working with Prakasha & Co. you can minimize the errors in tax filings, reducing the risk of audits, penalties, or litigation caused by non-compliance or inaccuracies. The key benefits of choosing Prakasha & Co. are briefed below: 

• Up-to-date knowledge of corporate tax laws
• Identify tax-saving opportunities and reduce liabilities
• Provide customized tax strategies
• Save time and allows to focus on core business activities 

Contact Prakasha & Co. At 

Address: 188/1, Sahakarnagar, Bangalore-92

Phone: +91 7019 827 351

Email: Prakashaandco@gmail.com