Tax planning is an essential component of personal and business financial management that focuses on organizing finances in a manner that is aligned with prevailing tax laws and regulations. The objective of tax planning is to understand applicable tax provisions and make informed financial decisions that may help manage tax liabilities responsibly. Effective tax planning involves evaluating income sources, investments, expenses, and available deductions or exemptions under the Income Tax Act and other applicable regulations. It encourages individuals and businesses to plan transactions and financial activities in advance, with a clear understanding of compliance requirements and documentation.