What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Strategic planning of the company’s overall Income Tax position.
- Identification of applicable deductions, exemptions, incentives, and tax benefits.
- Evaluation of the tax impact of proposed business transactions and investments.
- Assistance in managing and forecasting corporate tax liabilities.
- Tax-efficient planning of business structures and transactions, where applicable.
- Improved coordination between business decisions, accounting, and tax compliance.
- Reduced risk of avoidable tax costs through proactive planning and documentation.
How the engagement works
Corporate tax planning is undertaken with reference to the applicable provisions of the Income-tax Act, 1961, Income-tax Rules, Finance Act amendments, and other relevant tax regulations. Depending on the nature of the company and its activities, planning may involve provisions relating to business income, depreciation, deductions, tax incentives, capital gains, related-party transactions, withholding tax, minimum alternate tax or other applicable provisions. All tax planning strategies must be based on genuine commercial transactions and comply with applicable law.
Scenario 1: A company is planning a major investment, expansion, acquisition, or restructuring and wants to understand the associated Income Tax implications.
Scenario 2: A growing company wants to review its tax position and identify legitimate deductions and incentives available for its business activities.
Scenario 3: A company is evaluating different transaction structures and wants to compare their potential tax impact before implementation.
Scenario 4: Management wants to forecast the company’s tax liability and plan cash flows before the end of the financial year.
Scenario 5: A company wants ongoing tax advisory support to ensure that business decisions are evaluated from both commercial and tax perspectives.
Corporate Tax Position Review
We review the company’s income, expenses, investments, business activities, existing tax positions, and relevant financial information to understand its overall tax exposure.
Tax Liability Planning
We assess current and projected taxable income and assist management in planning for expected corporate tax liabilities and related cash-flow requirements.
Deductions & Incentive Analysis
We identify applicable deductions, incentives, allowances, and other legitimate tax benefits based on the company’s business activities and eligibility.
General questions
01What is corporate tax planning?
Corporate tax planning is the process of evaluating a company’s business activities, income, expenses, investments, transactions, and applicable tax provisions to manage its Income Tax liability efficiently while remaining compliant with the law.
02Why is corporate tax planning important for a company?
Proactive tax planning can help a company identify legitimate tax benefits, anticipate tax liabilities, evaluate transaction structures, manage cash flow, and make informed business decisions while reducing avoidable tax costs.
03Can corporate tax planning reduce a company’s tax liability?
Legitimate tax planning may help manage tax liability by making appropriate use of deductions, incentives, allowances, and other benefits available under applicable law. Tax planning should always be based on genuine commercial transactions and statutory compliance.
04When should a company start corporate tax planning?
Corporate tax planning is generally most effective when performed throughout the financial year. Early planning allows the company to evaluate business decisions and transactions before they are implemented.
05Can you advise on the tax impact of business transactions?
Yes. We can review proposed transactions and provide guidance on their potential Income Tax implications, applicable provisions, and documentation requirements before implementation.
06Is corporate tax planning applicable only to large companies?
No. Companies of different sizes can benefit from proactive tax planning. The scope of planning depends on the company’s business activities, turnover, investments, transactions, and overall tax position.
