Definition

Tax planning involves conceiving of and implementing various strategies in order to minimize the amount of taxes paid for a given period.

Entrepreneurs can always look at the business from two angles : (i) Reach to the market and market share. (ii) Pay back and return on investment.

Industrial Parks/SEZ
Conditions : (a) It develops, develops and operates or maintains and operates an IP or SEZ notified by CG. (b) It must start operating during April 2006 to March 2011 and should be notified by CG Deductions Amount of deduction: 100 per cent for 10 years commencing from the initial assessment year under section 80-IA

SECTION 80-IB A Hotel Industry Hotel located in hilly area or rural area or place of pilgrimage or in a notified area 50% for first 10 years

Any Other Hotel B Multiplex Theatre

30% for first 10 years 50% of profit derived from business of building, owning and operating a multiplex theatre is deductible for a period of 5 consecutive years beginning from the initial assessment year.

Operating and maintaining a hospital in a rural area

100% of profits and gains of such business is deductible for a period of 5 consecutive assessment years beginning with the initial assessment year.